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Project Profiles

Las Vegas Monorail

Location

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)

Program Areas

P3Revenue - Non-Road Pricing Revenue

Mode

Monorail Transit

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. Expansion of the Monorail to McCarran International Airport is under consideration.

Cost

$650 million

Funding Sources

Tax exempt revenue bonds (backed by fares and advertising)

Project Delivery / Contract Method

Modified BOT/DBOM

Private Partner

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

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

Duration / Status

Opened July 2004

Financial Status

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.

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

Related Links / Articles

Las Vegas Monorail Website

Contacts

Not available