End of the Line for Las Vegas Monorail

Las Vegas Monorail Terminal

In late 2020, when the Las Vegas Convention and Visitors Authority (LVCVA) acquired the Las Vegas Monorail Co. to emerge from bankruptcy, the once futuristic streetcar Fans of the system see it as a lifeline.

This is really a death sentence.

What most people don’t know is that the LVCVA’s plan calls for an $11 million fee to “eliminate the monorail,” possibly as early as 2028 but certainly as early as 2030.

The last stop is coming

The problem is that the LVCVA pays a Los Gatos, Calif., company up to $500,000 a year to operate the monorail, which is akin to driving a 1961 Ferrari 250 GT California SWB Spider. Sooner or later it will break and require a replacement part that is no longer available because it is no longer manufactured.

Old monorail parts are not one of the items listed on eBay.

The monorail features nine Mark VI streetcars, each with four cars, and its four miles of track were designed for installation. These trams were only manufactured by Bombardier in Quebec and are no longer in production. In fact, after racking up billions of dollars in debt, the company no longer makes streetcars at all. Bombardier sold its rail business to French rival Alstom in 2021 for $6.7 billion.

Monorail executives have reportedly been pushing Disney World to upgrade its Mark VI streetcars for some time so they could purchase the retired trains. (The first monorail operated in Las Vegas, connecting the MGM Grand and Bally's Department Store from 1995 to 2002, using two retired Disney World Mark IVs.)

However, the Mouse House found itself in the same desperate situation as Las Vegas. It could buy a new monorail system, but it would have to build entirely new tracks. It's not "impossible" for a company to develop a new monorail that fits on existing tracks, but no one is rushing to occupy this very niche segment.

Off track

The Las Vegas Monorail was born in 2003 when the original MGM Grand to Bally system was expanded to add seven stations along the resort corridor.

Because it is a public service, it has never made a profit - but it was not designed to be that way. Although no public funds were used for the $650 million construction (currently $1.12 billion), Nevada provided the largest government bond investment in the state's history for the project.

In addition to the recent second bankruptcy, another sign of trouble is the relatively low price the LVCVA paid for a system that cost so much to build.

The third clue was the monorail's plans to expand Mandalay Bay/Allegiant Stadium and stop at the MSG Sphere, surrounded by silence. Both were approved by Clark County in 2018 and are expected to open in 2021.

In October 2019, the monorail even announced $33.5 million in expansion financing from Dallas-based Preston Hollow Capital.

Las Vegas Monorail CEO Curtis Myles said in a statement at the time that completing the initial financing is an important and necessary step in our expansion strategy for the system, which is already providing Our busy resort corridors provide significant transportation benefits.

“With two new stations, we will bring even more benefits to our customers, resort partners, sponsors and our community.”

The LVCVA no longer refers to any stations.

Crazy Train

So why did the LVCVA buy an old transit system that it knew was doomed?

Because the monorail has a non-compete agreement that prohibits other companies from building another off-street transit system for the Las Vegas Strip.

The LVCVA had signed a $48 million contract with Elon Musk's The Boring Company in 2019 to build the Vegas Loop, potentially violating the monorail's noncompete agreement.

Monorail fares are $5.50 one-way, $13.45 for a 24-hour unlimited pass, and $57.50 for a 7-day pass through the system website. The monorail runs every four to eight minutes.

Take one last trip while you still can!