Monorail board studies budget

Adrienne Packer

Wednesday, Nov. 29, 2000 | 10:28 a.m.

As property along Paradise Road was cleared to make way for the new Las Vegas Strip monorail's first structure -- a maintenance building -- the system's nonprofit corporation held its first budget meeting Tuesday.

The three-member nonprofit board reviewed the same 2001 budget that state officials approved before $650 million in tax-exempt bonds were sold last September.

Those who invested in the bond issue -- the largest tax-exempt bond in the history of Nevada -- will be paid about $30 million in interest for the calendar year ending Dec. 31, 2001.

The budget shows the monorail company will earn $20 million in interest during the one-year period, but the cost of construction and the commitment to shareholders will cost about $163 million.

Cam Walker, an officer with the Las Vegas Transit Systems Management team, said while the project will be at a deficit by the end of the year it has more than $600 million in its account.

Walker said construction on the maintenance building will begin in April and the entire monorail system is expected to be finished by January 2004.

The 3.9-mile monorail will ultimately connect with the Ballys-MGM Grand train, adding five stations to the existing system. From the Bally's station, the monorail will travel north along the Strip, turn right on Sands Avenue and north on Paradise Road to the Sahara hotel.