LVCVA Transportation Convention Center $ 51.25 million Monorail Boring Co.
The Las Vegas Convention and Visitors Authority will spend up to $ 51.25 million on transportation equipment over the next three years to move conventioneers to and around the Las Vegas Convention Center.
LVCVA’s board of directors on Tuesday approved a pair of deals involving the Las Vegas monorail and Elon Musk’s underground passenger transport operations. The board also approved, at no cost, an agreement that could eventually link the convention center to Boring’s 15-mile Vegas loop system throughout the city.
In three separate actions, the board of directors authorized the payment of $ 45 million to Western Management Group for the operation of the monorail from February 7 to June 30, 2023; up to $ 6.25 million to Boring to operate the mile-long passenger transportation system from February 1 to June 30, 2022; and, at no cost, authorized access to Boring to dig tunnels from the Convention Center to Encore under the Convention Center grounds.
LVCVA President and CEO Steve Hill and CFO Ed Finger told board members that LVCVA will come out on top with anticipated monorail revenues exceeding expenses.
Finger said that under a normal operating environment, the monorail generates around $ 21.5 million per year in ad revenue and ad revenue. In the contract negotiated with Western, he said, the operations would cost $ 19.25 million per year with $ 1.5 million in annual capital costs.
The LVCVA plans to pay Western $ 7.5 million for the remainder of fiscal 2021 and $ 18.75 million for each of fiscal 2022 and 2023.
Most of Western’s employees worked for Las Vegas Monorail Co. before it filed for Chapter 11 bankruptcy in the US bankruptcy court in Las Vegas. LVCVA bought the bankrupt 3.9 mile electric transit system for $ 25.2 million in December.
Las Vegas Mayor Carolyn Goodman cast the only dissenting vote against the Western deal, citing how the monorail was “doomed” for not extending its route to McCarran International Airport and downtown. city of Las Vegas.
In a second vote, the board agreed to pay Boring $ 1.25 million for the remainder of fiscal 2021 and $ 5 million for 2022 to operate the underground people carrier Convention Center Loop, a pair of kilometer-long tunnels using Tesla electric vehicles.
Boring will use different rates depending on the existence of conventions, meetings or trade shows using the building and the number of participants. LVCVA will pay Boring $ 167,000 per month to maintain the system until the shows return to the Convention Center, scheduled for June. A sliding scale based on the size of the show would cost LVCVA up to $ 30,000 per day, depending on the number of people attending the shows.
The Convention Center Loop will not charge users for rides or show sponsors for the service. The LVCVA considers the transport of people as a means of transport.
Until the end of 2021, the Tesla will be operated with drivers. At the end of the year, LVCVA expects the system to operate autonomously and at that time LVCVA would renegotiate the terms of the operating agreement with Boring.
Goodman also voted against the Boring payment because she fears the system, the first of its kind in the world, is not working properly. She said the transit system is too large for LVCVA to be Boring’s first customer.
The third agreement also concerns Boring, has no fiscal impact and defines the easements the company will have when building tunnels between the Silver Parking at the Convention Center and the Encore complex.
Still could be the location of a station that would be part of the larger Vegas Loop system that would transport passengers between downtown, the resort corridor, McCarran, and Allegiant Stadium.
Vice-President Marilyn Spiegel, President of Wynn Las Vegas and Encore, abstained in the vote.