The Las Vegas Monorail Company (LVMC), a non-profit public benefit corporation (501 C4 corporation) has 50-year county franchise to upgrade & extend existing Bombardier Mark IV monorail.
Monorail will serve the heart of the resort corridor, east of Las Vegas Boulevard , linking the MGM Grand hotel-casino with the Sahara hotel-casino. It contains 6.4 km (four miles) of elevated dual-monorail guideway will connect seven stations and integrate two existing stations.
The project also re-equips the existing 1.6-km (one-mile) guideway of the former MGM-Grand Bally's monorail line. It will have a fleet of 36 monorail cars operated in nine 4-cars trains. The project will provide direct service to eight major resort properties and the Las Vegas convention center. It is expected to carry 19 million passengers in its first year of operation.
LVMC was created for the sole purpose of acquiring the existing monorail project from MGM Grand-Bally’s Monorail LLC (the limited liability company that owned the previous system,) and then develop, operate, and maintain the new expanded project. The early LLC company’s rights to the initial monorail project were granted under a franchise agreement with Clark County , Nevada . LVMC obtained the LLC’s rights from the earlier franchise agreement.
LVMC entered into a management contract with Transit Systems Management LLC, for the construction, operation, and management of the project.
The Nevada Department of Business and Industry (the Department) issued the various bond series used to finance the system, passing the proceeds to LVMC. LVMC maintains a collection fund from which it will pay 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 Departments bonds and for the maintenance of debt service reserves. LVMC also maintains a separate capital replacement funds. Although LVMC has executed a management contract which includes operations and maintenance agreement, fairbox, advertising, and other project revenues remain the property of LVMC.
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