LVCVA to pursue Las Vegas Monorail acquisition
The Las Vegas Convention and Visitors Authority will pursue the acquisition of the Las Vegas Monorail Co. and the authority’s board of directors will put it to a vote next week.
LVCVA President and CEO Steve Hill alerted the board on July 14 that he was in early talks for the LVCVA to buy and operate the 3.9-mile transit system that first began operating in 1995.
Details of the transaction are expected to be explained in the LVCVA meeting agenda packet, scheduled to be posted Wednesday.
In two separate meetings Sept. 1, the Clark County Commission will consider actions to allow the transaction in the morning and the LVCVA board will consider the acquisition in the afternoon.
Clark County’s role in the deal involves the transfer of franchise rights to the LVCVA.
Among the conditions for the approval of the transfer is that the LVCVA may not pledge or spend revenue for the payment of any operating subsidy or any capital improvement that exceeds 3 percent of the LVCVA’s budgeted operating revenue for any fiscal year, not to exceed $10 million a year, without first getting commission approval.
If the LVCVA takes over the franchise agreement, it also would take on the obligation of tearing the system down should it fail. If the LVCVA closes escrow on the deal, the county would transfer the money remaining in a county-held remediation fund to the LVCVA.
A Clark County spokesman said Tuesday there is $6.75 million in the remediation fund.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.