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Monorail Gets Final Financial Approval

CARSON CITY, Nevada – Aug. 30, 2000 -- Plans for the $650 million monorail to connect casinos on and near the Las Vegas Strip have cleared another hurdle, and the project should have its money to begin construction by the end of September.

"This has come a long way," Claire Hess, a member of the finance board, said. State Treasurer Brian Krolicki said many of the stumbling blocks were removed in the last few weeks, such as getting the rights-of-way and insurance to cover those who buy the bonds.

Krolicki said "It's been a trying time for everyone." The project is better now because of objections by the Venetian and its owner Sheldon Adelson. The hotel-casino dropped its opposition Monday.

The Las Vegas Monorail Company, a nonprofit group, will pay $23 million in premiums to Ambac Insurance Co., to pay off bondholders if the project fails. It was stressed several times during the meeting that the state and its taxpayers are not responsible for this debt if there is a default.

Cam Walker, a member of the consulting team, told the finance board the other systems have peaks in the morning and evening when workers go to and from their jobs. This system would have a 12-hour peak of tourists that is "unheard of" in other places, he said.

In talking about the ridership, Walker said 30 percent of Las Vegas visitors come on tour packages. These tour promoters have already contacted monorail officials about getting two to three rides on the system and include those in the price of the package.

Those who book conventions are also talking about buying monorail tickets for their visitors to get to and from the hotels and to the convention center. And the resorts where the stations are have agreed to make it easy to purchase a ticket without long lines or congestion.

The present monorail from the MGM Grand to Bally's will become part of the expanded system that will end at the Sahara hotel casino.

The casinos, Walker said, also have a "tremendous opportunity" to devise how their employees might use the system for getting to and from work.

The Aladdin and the Riviera have express interest about locating a station at their hotels, officials said. Broadbent said monorail executives have talked to Steve Wynn, new owner of the Desert Inn, about a station at his new hotel complex when completed.

In addition, Broadbent said he expected construction to start on 10,000 to 12,000 new hotel rooms in Las Vegas in the next year. And they would be ready just about the time the monorail comes on line in the beginning of 2004.

At present there are seven stations planned: the MGM Grand, Bally's, Flamingo Hilton, Imperial Palace/Harrah's, Las Vegas Convention Center, Las Vegas Hilton and the Sahara.

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