Decision on state bonds for monorail delayed

Adrienne Packer

Monday, June 19, 2000 | 11:33 a.m.

The Nevada Department of Business and Industry has delayed its decision on whether to issue $640 million in tax-exempt state bonds for a proposed monorail project, saying it needs more time to review arguments from both sides.

Sydney Wickliffe, the director of the department, had been expected to announce her decision by today.

"I have decided not to take any action until all my questions are resolved one way or the other," Wickliffe said.

The Clark County Commission is expected to review Wickliffe's findings during its July 5 meeting. The state Board of Finance is scheduled to make the final ruling in August. Wickliffe, however, said she would not be bound by meeting schedules.

MGM Grand-Bally's Monorail LLC has requested the bond issue to extend its existing monorail that links the two hotel-casinos on the southern end of the Las Vegas Strip to the Sahara hotel-casino on the north. The new route would travel north on the Strip, east on Sands Avenue and north on Paradise Road.

Although no state funds would be used for the project, the tax-free bond issue would be the largest ever granted in Nevada.

"My decision is not whether or not to allocate state funds to the project," Wickliffe wrote in a prepared statement. "Rather, I must determine if investors and developers have enough financial resources to start the project and continue its operation while paying off its bond debt."

Proponents and opponents of the project submitted studies to the state's financial adviser, the Public Resources Advisory Group of Los Angeles, which delivered its report to the state in May.

The business and industry division held a public hearing June 8 to hear arguments from both sides of the project. After eight hours of testimony, Wickliffe allowed four more days for each side to submit additional comments.

Wickliffe's office received mounds of new information and requested responses to certain concerns raised in the hearing.

Representatives of the Venetian hotel-casino requested that Wickliffe postpone her decision until the monorail group secures all of the property easements needed for the project. They also delivered a letter noting 17 conditions that should be placed on the project should the bond-issue be approved.

The monorail group was asked to better explain its perceived "zero fare" plan in which the cost of monorail tickets -- which would be $2.50 one way and $5 round trip -- would be included in room rates or convention packets.