Sale of Las Vegas monorail to LVCVA approved by judge


A judge on Tuesday approved the sale of the Las Vegas monorail to the Las Vegas Convention and Visitors Authority.

U.S. bankruptcy court judge Natalie Cox said she would sign the order allowing LVCVA to acquire the 3.9-mile elevated transit system for $ 24.26 million. Most of the money generated by the sale will be distributed to creditors.

“We are delighted that the U.S. Bankruptcy Court has today approved the sale of the assets of Las Vegas Monorail Co. to LVCVA and look forward to the transaction closing in the coming weeks,” said Steve Hill, President and CEO of LVCVA. declaration.

LVCVA’s primary interest in acquiring the system is to control a non-compete agreement that allows Elon Musk’s The Boring Co. to build a competing underground transportation system on the east side of Las Vegas Boulevard.

The LVCVA will now be able to enable the company to develop approximately 15 miles of tunnels for a new but untested system that will use Tesla vehicles to transport customers to various locations in the resort corridor and downtown Las. Vegas and to Allegiant Stadium and McCarran International. Airport.

When the spread of the coronavirus subsides, the LVCVA should operate the monorail system. The organization said the monorail is an important transportation option when the destination is at full capacity, as it carries nearly 5 million people per year, many of whom attend meetings and trade shows at the Las Vegas Convention Center. .

LVCVA says it wants to make sure the monorail system continues to operate. At its October meeting, the LVCVA, in a 12-1 vote, approved a deal with Western Management Group of Los Gatos, Calif., On a contract for no more than $ 500,000 to manage the monorail of Las Vegas.

Executives at the Las Vegas monorail, including President and CEO Curtis Myles, are expected to be hired by Western Management to oversee the system due to their familiarity with its operation.

Cox has conducted six hearings since September 11 as the LVCVA went through the process as a bidder of hunting horses.

Hill said early on that it was possible for other entities to outbid LVCVA for the system. But at a hearing in October, it was determined that there were no other qualified bidders, paving the way for sale to LVCVA.

Cox also declined a motion from the World Buddhist Association, which intends to build its headquarters on vacant land near the northern terminus of the monorail line in a vacant parking lot across Paradise Road from the Sahara.

After initially opposing the sale on September 11, the Buddhist association filed objections on October 12, November 6, and Friday, but Cox ruled against them all.

Long-term plans for the monorail are unclear, but minimal staff have been hired to keep the system functioning and safe.

Hill said that the developer of the system, Bombardier Inc., based in Canada, no longer manufactures trains for the type of system that Las Vegas has.

Cox revealed during Tuesday’s hearing that MGM Resorts International had been approached to purchase the monorail, a suggestion offered by LVCVA board member and Las Vegas mayor Carolyn Goodman. MGM declined the offer.

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Contact Richard N. Velotta at [email protected] or 702-477-3893. To follow @RickVelotta on Twitter.



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