LVCVA expected to take possession of Monorail this week

The Las Vegas Convention and Visitors Authority is closing in on taking possession of the Las Vegas Monorail system.

In two meetings this week, the LVCVA board of directors on Tuesday will formally consider waiving the prohibition on potentially competing transportation systems in the Las Vegas Monorail Non-Compete Zone and on Thursday will assign rights to compete to The Boring Co., Elon Musk’s tunnel-burrowing company.

The LVCVA’s $24.26 million acquisition of the 3.9-mile elevated electric transit system is expected to close Wednesday after U.S. Bankruptcy Court Judge Natalie Cox approved the sale in a hearing Nov. 24.

At the LVCVA board’s regularly scheduled meeting Tuesday, it is expected to waive the noncompete clause, which would pave the way for The Boring Co. to build an underground transit system it calls the Vegas Loop.

Musk’s The Boring Co. is close to testing its three-station, mile-long people mover beneath the Las Vegas Convention Center and is negotiating with Clark County to build its extensive Vegas Loop, which would include about 15 miles of tunnels connecting resorts along the Strip and downtown Las Vegas with McCarran International Airport and Allegiant Stadium.

Once it receives permission, The Boring Co. plans to build the system with stations paid for by resorts that want them. Boring would then operate the system, but the company hasn’t indicated what fares would be or how much it expects to invest in the system.

The Boring Co.’s plans would include tunnels on the east side of Las Vegas Boulevard that fall within the Monorail’s noncompete zone. The LVCVA’s ownership of the Monorail gives it authority to waive the noncompete zone.

That’s expected to be completed at a special meeting Thursday afternoon.

While taking possession of the noncompete agreement was a major reason for acquiring the Monorail, the LVCVA still plans to operate the Monorail. LVCVA President and CEO Steve Hill has said that when there’s enough visitor demand in the city, the Monorail will restart.

When it does, a company known as Western Management Group will operate the system. The LVCVA board in October voted 12-1 for Western to manage the day-to-day operation of the system for an amount not to exceed $500,000. Several former Las Vegas Monorail Co. executives, including President and CEO Curtis Myles, will now work for Western.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.