- Briefing Room
Las Vegas, Nevada
|Project Sponsor / Borrower
The Las Vegas Monorail Company
State of Nevada Department of Business and Industry
Clark County (franchise and ROW)
Nevada Department of Transportation (ROW)
|Value Capture Techniques
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.
Extension of the Monorail to the Mandalay Bay and Luxor resort and convention campus is under consideration.
Tax exempt revenue bonds (backed by fares and advertising)
|Project Delivery / Contract Method
63-20 - Modified Build-operate-transfer/Design-build-operate-maintain (BOT/DBOM)
Original developer - MGM Grand-Bally's Monorail, LLC
Current owner - Las Vegas Monorail Company
BOT partner - Transit Systems Management, LLC
|Project Advisors / Consultants
Booz Allen / G.C. Wallace
Public Resources Advisory Group
Broadbent & Walker
Nossaman, Guthner, Knox & Elliott, LLP
Public Financial Management Consultants
Stradling Yocca Carlson Rauth
|Duration / Status
Opened July 2004
Revenue bonds were 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.
LVMC filed for Chapter 11 bankruptcy protection in January 2010 due to declining revenues from the economic downturn. A bankruptcy reorganization plan was approved in May 2012.
|Related Links / Articles
Las Vegas Monorail Company