Las Vegas Monorail, Boring contracts for approval at LVCVA board meeting
The leaders of the Las Vegas Convention and Visitors Authority have recognized that moving visitors efficiently is an increasingly important part of the Vegas experience.
It is therefore not surprising that delegates will soon have more means of getting around when they return to the city.
The LVCVA is preparing to transport conventioneers throughout the city later this year through a series of management agreements with the Las Vegas Monorail and the Boring Co.
When the LVCVA board meets on Tuesday, it will consider a deal of up to $ 45 million through June 2023 on the monorail and up to $ 6.25 million through June 2022 with Boring to maintain and operate the respective transport systems.
LVCVA’s board of directors approved the $ 24.3 million purchase of the monorail system in September and the U.S. bankruptcy court approved the transaction in late November.
Convention attendees are not expected to return to southern Nevada until health officials and the state government issue guidelines for meeting safely in large groups later this year. LVCVA President and CEO Steve Hill said he hopes the conventions will return by spring.
Upon their return, delegates will potentially have Boring’s Monorail and Las Vegas Convention Loop available to move them around the resort hallway and campus of the Las Vegas Convention Center.
Here’s what LVCVA’s board of directors will be reviewing next week:
– For the monorail, a new operating and management agreement with Western Management Group not to exceed $ 45 million and in effect from February 7 to June 30, 2023. Western and LVCVA reached a provisional agreement on 9 December expiring February 7 for the maintenance and operation of the 3.9 mile elevated electric transit system. Under the agreement, LVCVA would pay Western $ 250,000 per month in management fees and $ 1.25 million per month for operations and maintenance. The agreement provides options for two three-year extensions and gives LVCVA discretion to set tariffs and decide when to resume or suspend system operations.
– With Boring, the new deal would pay the company to operate the $ 52.5 million, kilometer-long, underground passenger transportation system that will be free for convention attendees. The deal, which would run from February 1 to June 30, 2022, would compensate Boring with a management fee of $ 167,000 per month until convention activity returns. Base operation and maintenance costs would be calculated based on the size of the salon after conventions return and would be a maximum of $ 30,000 per day for larger salons and would rent Tesla vehicles used by the system. . The management fee includes Boring providing a car and driver for all opening days of the convention center.
– A second agreement with Boring gives the company access to an underground easement on a tunnel connecting the Encore property of Wynn Resorts Ltd. at the Convention Center. The tunnel will pass under Paradise Road and the Silver Lot of the Convention Center with a station in front of the central concourse of the Convention Center, just south of Metro Station 2 of the Convention Center Loop. The Encore-Convention Center tunnel project will be funded, constructed, operated and maintained by Boring, which will also construct and maintain an emergency exit shaft.
LVCVA officials say that in a normal operating environment, the monorail system generates $ 21.5 million per year in tariff and advertising revenue and costs around $ 19.25 million to operate. The agreements envisaged by LVCVA will allow it to sell advertising on the Monorail and its stations as well as in the three shuttle stations used in the Las Vegas Convention Center Loop and the Encore line station.
The Encore tunnel line could be extended and provide additional connectivity to Boring’s planned Vegas Loop project, a 15-mile resort corridor system under consideration by Clark County that would serve downtown Las Vegas. , Resort Corridor, Allegiant Stadium and McCarran International Airport.
The monorail, a key transportation system for conventioneers to the Las Vegas Convention Center or the MGM Grand Conference Center, has become even more useful now that the Caesars Forum conference center is ready for business.
Hill said that once in place, the drilling system has the potential to be a tourist attraction on its own. It’s similar to what the Monorail began when it started operating in 1995 as a point-to-point system between MGM Grand and Bally’s and reopened in 2004 as the system is today.