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County Grants Final OK For Strip Monorail

LAS VEGAS, Nevada --Aug. 9, 2000 --Ending three years of discussions and debates over a proposed multimillion-dollar monorail project along the Las Vegas Strip, Clark County commissioners granted their final approval Tuesday.

Whether the existing monorail between the MGM Grand and Bally's is extended north to the Sahara hotel-casino is now up to the state Board of Finance, which is scheduled to consider the issue Aug. 18.

The board, which includes Gov. Kenny Guinn, will determine whether the state will issue MGM Grand-Bally's Monorail LLC $650 million in tax-free bonds to build the system.

During the four-hour hearing, commissioners explored potential risks to the county, listened to assurances the system would not cost taxpayers money and even engaged in a debate with opponents of the monorail.

If there was a chance Bob Broadbent, the lead consultant on the project, and his crew of dark-suited executives might be denied by the commission, news that Amback Assurance Corporation agreed to insure the first tier of the bonds -- about $450 million's worth -- erased most concerns.

While the insurance satisfied the board, it didn't comfort attorney's with the Venetian hotel-casino, the primary opponents of the project who say there are still many unanswered questions.

The attorney's asked why the monorail group hadn't fulfilled all the conditions required in its county franchise agreement.

Members of the monorail team for months have been telling opponents and county commissioners that all its reports will be in the final form by the time the board met to make its final decision. Only draft reports have been submitted.

Rather than producing the final forms, Broadbent submitted "letters of reliance" from the state's bond counsel, the state's financial advisor, ridership prognosticators URS Greiner Woodward Clyde, engineers and Promethean Corporation, which conducted advertising studies.

The letters, according to county franchise manager Jim Spinello, assure the county that each agency stands behind their reports.

Venetian attorney David Friedman also wondered why the monorail group had yet to secure three vital easements from the Sahara, Harrah's/Imperial Palace and Nevada Power, a question that triggered a testy response from commission chairman Bruce Woodbury.

Woodbury, a friend of Broadbent's, reminded Friedman the board allowed the Venetian to move forward although not all the proper studies and paperwork had been completed.

Friedman argued that the difference between the Venetian and the monorail is the latter will use state bonds. Woodbury cut off the discussion, saying he would remember the debate the next time Friedman comes before the board.

Though two lawsuits related to the monorail are active, Broadbent dismissed both of them on Tuesday with a shrug.

But it's doubtful the two lawsuits will be the end of the legal battles.

Friedman questioned how the county could issue a monorail master business license for the nonprofit organization -- called the Las Vegas Monorail Company -- when a management company has yet to be created or even identified.

Critics believe the management company -- a separate entity with different duties than the nonprofit -- will include Broadbent and partner Cam Walker.

If the project fails within its first 11 years, Broadbent said the companies involved will pay the cost to tear the system down and remove it. But critics argued that taxpayers aren't free of responsibility.

While commissioners Woodbury, Dario Herrera, Mary Kincaid and Erin Kenny each approved of the insurance status and licensing of the monorail, Lance Malone abstained, saying he supports the project but does not feel all the conditions placed on the project have been satisfied.

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