Boring Co. partner LVCVA obtains Vegas monorail, paving way for Vegas Loop expansion
The Boring Company’s partner in the development of Vegas Loop, the Las Vegas Convention and Visitors Authority (LVCVA), has officially secured the Vegas monorail. The Monorail is the only transit system in Vegas parallel to the Strip, but it went bankrupt due to the COVID-19 pandemic. After the bankruptcy, LVCVA bought the Monorail system for $ 24.2 million, which opens the door for the Boring Company to consider possible expansion in the future.
“We are delighted that the US Bankruptcy Court has today approved the sale of the assets of Las Vegas Monorail Company to LVCVA and look forward to the transaction closing in the coming weeks,” said Steve Hill, CEO of LVCVA.
According to a report by NBC 3 LV Affiliate News, the sale of the Monorail was finalized on November 24 and the LVCVA officially obtained the rights to operate the system and manage its territories. Because the monorail had rights to certain areas, other transportation options, such as Boring Co.’s Vegas Loop project, could not operate in certain areas of Sin City. However, the purchase of the project by LVCVA will now offer the company and its entities a full range of options to grow in any area.
An exclusivity clause had previously prevented any other company from operating in Monorail territories. But now that is a thing of the past.
“Again, it is the Boring Company and others who – what technology is there, whether it is the light rail, the BRT (bus rapid transit), to be able to enter and expressly from the private sector to invest in this corridor”, said the chairman of the board of directors of LVCVA. Larry Brown said in July.
Entities like the Boring Company, which have ideas to revolutionize visitor travel to Las Vegas, have long sought to improve the situation. Yet exclusivity clauses have become problematic for expansion. It has more or less become a question of ownership of rights to certain properties, which has helped to ease the monopolization of public transport in the region. However, it creates a bond for tourists and residents alike as there would have been multiple tickets to purchase and the tedious task of switching between modes of transport. In the end, it would have done more harm than good if visitors had been forced to do so.
Now that LVCVA officially owns the rights to the monorail and its territories, the Boring Company may begin to speculate that its expansion attempts may be approved. The Tesla-operated subway system that the Boring Company plans to use could end up withholding stops at nearly any tourist attraction in Las Vegas, and would move 8,000 people every hour in record time.
However, LVCVA plans to continue operating the monorail until the end of its lifespan. The Authority says it expects the monorail to last another ten years, which would give the group enough time to start preparing new ways to move people from place to place. With the Boring Co. planning to have a significant presence in Las Vegas, the LVCVA could likely expand the Vegas Loop to monorail territories after becoming an old mode of transportation.