MGM Grand Monorail Extension to Mandalay Bay Makes County OK
The Las Vegas Monorail Co. received approval from Clark County on Tuesday to expand its route from the MGM Grand to Mandalay Bay.
Before construction can begin, however, the monorail company must finalize the design for the expansion, conclude discussions with the county aviation department and secure funding for the project, the president and CEO said. management Curtis Myles.
The 1 mile extension could take two years to build and test.
County commissioners voted to approve a list of items that will help make the expansion possible, including land use permits and permission for the monorail company to continue to tap into a long-running escrow account date to pay design and engineering costs.
But a resolution between the company and the county, which tilted heavily in favor of the government, caused the most discussion.
The approved resolution will allow the monorail company to seek from the county up to $4.5 million annually in excess tax revenue from resort hallway rooms. The money would be used to pay for track maintenance if no other money is available.
County Chief Financial Officer Jessica Colvin said the county was not required to give the money to the monorail company. Both parties agreed that the county could rescind the resolution at any time.
Either way, Myles said the resolution is critically important because it will allow the monorail company to sell rated bonds for its expansion project.
“It’s not going to give us an AA rating, it’s going to give us an investment grade,” Myles told the commissioners.
Obtaining an investment grade should reduce the interest rate on the bonds by at least 1.5%, a financial adviser for the project told the commissioners. Previous estimates put the minimum project cost at $100 million.
Commissioner Larry Brown called the resolution a “no-brainer” and asked for approval.
“I think we are absolutely protected, but I hear this resolution allows the monorail to have more strength in the financial market,” he said. “The monorail, whether you like it or not, is here, and this expansion could take us to the next level.”