Wednesday, November 29, 2000
Copyright © Las Vegas Review-Journal

Construction of Strip monorail gets under way

Construction of the Strip monorail began Tuesday morning with demolition and grading work for the system's maintenance facility, while across town the board of directors of the nonprofit Las Vegas Monorail Co. approved a $141.8 million budget for 2001 and forwarded it to Gov. Kenny Guinn for final approval.

"Today we actually started construction," said John Haycock, chairman of the Las Vegas Monorail Co. "From here on out it will be exciting to see it put in operation."

At first, work will focus on the maintenance facility at Sahara Avenue and Joe W. Brown Drive, which will include maintenance bays for the system's nine trains and offices for Bombardier Inc., the Canadian company awarded the contract for design, construction and operation of the monorail.

In May, crews will begin to install the concrete columns that will support the monorail guideway.

The 3.8-mile route is still under design, but plans currently show it will run along the east side of Paradise Road from Sahara to Desert Inn Road.

Continuing south, it will move to the center of the roadway on Paradise between Desert Inn and Sands Avenue and turn on Sands to Koval Lane.

After traveling down the middle of Koval for a distance it will move onto hotel property, where it eventually will connect with the one-mile monorail currently in use between the MGM Grand and Bally's.

The project is scheduled to be complete in January 2004.

Under the 2001 budget, the Las Vegas Monorail will spend $162.7 million and bring in only $20.8 million from interest.

The project's expenditures for 2001 include $126 million for right of way and contractor fees, $30.3 million for interest payments and $4.9 million for the services of Transit Systems Management, the firm in charge of developing the monorail.

The project is being financed by the state's sale of $650 million in tax-exempt bonds. The bonds are expected to be paid off in 20 years from fares and advertising revenue.

Total construction and material costs for the monorail will be about $385 million. The remainder of the $650 million will be used to service the debt and meet additional costs, according to Todd Walker, director of communications for Transit Systems Management.

Because of the state's involvement in the financing, the Las Vegas Monorail Co., a quasi-state agency over which the governor has control, will oversee the project, including its budget, construction and operation.

"As we get going, we've set a pattern for approval of the budget and we've set a pattern for openness," said Bob Broadbent, president of Transit Systems Management.