LVCVA to buy Las Vegas monorail along the Strip for $ 24 million
LAS VEGAS – In an effort to shape the future of convention transportation on the Strip, the Las Vegas Convention and Visitors Authority will purchase the Las Vegas monorail for $ 24 million.
âActing now and overseeing this transition is an important part of what we can do for Las Vegas,â LVCVA CEO Steve Hill said at a public board meeting on Tuesday when the agency tourism voted to approve the acquisition.
The elevated train travels a 4-mile route along the Las Vegas Strip, but operations have been suspended since March due to the coronavirus. The railway line is currently owned and operated by the private Las Vegas Monorail Company.
The tourist agency taking over the monorail signifies the collapse of a non-compete agreement that prevented other companies from developing systems on the east side of Las Vegas Boulevard, Hill said.
The monorail does not use public funding for its operations and is touted as the only private public transportation system in the United States, according to the company’s website.
The LVCVA plans to guide the Las Vegas Monorail Co. to Chapter 11 bankruptcy, dividing the $ 24 million among the creditors.
The monorail system will likely stop working in the next 10 years, Hill said, because no company produces the cars that now travel on the rails.
Replacing the cars could cost at least $ 200 million, he said.
âThe system cannot financially support this kind of investment,â Hill said. âOver the next decade, the monorail will likely stop working. “
The deal, Hill said, creates the opportunity for LVCVA to find competing transportation systems that can replace the monorail when it becomes obsolete.
Contribution: Associated Press.