Description: The Las Vegas Monorail was originally
a joint venture between MGM Grand and Bally's Hotel,
creating a one-mile system linking the hotels in 1993. Plans for expansion
further along the Strip led to the State of Nevada in 1997 passing legislation
that enabled a private company to own, operate, and charge a fare as a
public monorail system.
In 2000, the nonprofit public benefit corporation, Las
Vegas Monorail Company (LVMC) was formed, and it
acquired the original Monorail system under a 50-year
franchise agreement. The MGM Grand-Bally's Monorail
limited liability company's rights to the initial
monorail project, granted under a franchise agreement
with Clark County, were granted to LVMC under a new franchise agreement.
LVMC
entered into a management contract with Transit Systems Management LLC,
for the construction, operation, and management of the project. The Monorail
was upgraded and expanded to 3.9 miles with seven stops serving major hotels
and casinos. The expanded Monorail opened in July 2004 but suffered mechanical
failures in September that caused it to be shut down until the end of December. Daily ridership is about 26,000 passengers (2007). Expansion of the Monorail
to McCarran International Airport is under consideration.
Sponsor:
The Las Vegas Monorail Company
State of Nevada Department of Business and Industry
Clark County (franchise and ROW)
Nevada DOT (ROW)
Cost: $650 million
Type of Finance: Tax exempt revenue bonds, issued by
Salomon Smith Barney and the Nevada Department of Business and Industry
(Department). The bonds were issued and proceeds passed to LVMC. LVMC maintains
a collection fund from which it pays operations and maintenance costs. LVMC transfers net project revenues on a monthly basis to a trustee for
loan payments that mirror debt service payments on the Department's bonds
and for the maintenance of debt service reserves. LVMC also maintains a
separate capital replacement fund. Although LVMC has executed a management
contract which includes an O&M agreement, its farebox, advertising,
and other project revenues remain the property of LVMC.
Private BOT/DBOM Partner: Transit Systems Management
LLC, a joint venture of Bombardier Transit and Granite Construction
Private Investor Partner:
MGM Grand-Bally's Monorail LLC
MGM Mirage
Park Place Entertainment (Hilton Gaming, Caesars
World and Grand Casinos)
Project Advisors:
Booz Allen / G.C. Wallace
Public Resources Advisory Group
Orrick Harrington
Broadbent & Walker
Nossaman, Guthner, Knox & Elliott, LLP
Public Financial Management Consultants
URS Greiner
Carter-Burgess
Stradling Yocca Carlson Rauth
Wilbur Smith
Lenders: Bondholders
Physical Status: Open
Financial Status: Closed
Innovations: The LVMC is the first and only privately
owned public transportation system in the U.S. and operates with no public subsidies.
MGM Grand-Bally's Monorail Limited
Liability Company was the first joint venture between competing hotels/casinos
Contact:
Todd Walker
Las Vegas Monorail Company
3800 Howard Hughes Parkway
Suite 920
Las Vegas , NV 89109
Tel: (702) 731-4055
Email: todd@lvnvmonorail.com
