Next phase of monorail gets approval

Friday, May 14, 2004 | 8:51 a.m.

The first phase of the Las Vegas Monorail may not be carrying passengers, but it has the green light from the federal government to move forward on design of the second phase.

The Transportation Department on Thursday announced at a press conference that it has given its approval to final design work on the second phase of the monorail, which will extend the system from the Strip to downtown Las Vegas.

A 4-mile stretch of the monorail was originally slated to open in January, but hardware and software issues have kept passengers off the system. Officials with the companies building and managing the system say the monorail, which connects eight Strip resorts and is expected to carry 20 million passengers its first year, is in the final testing process and should open its doors sometime this summer.

"Today we gave the go-ahead to begin final design of the next stretch of the monorail system that will serve visitors and residents in Las Vegas," said Martin Whitmer, Transportation Department deputy chief of staff. "The department's approval of this request moves forward an important project that holds exciting promise for the city."

Sue Christiansen, a spokeswoman for the Regional Transportation Commission, which has worked with the developers of the system and could provide funding for future extensions, said the approval is a significant milestone.

"It basically means we can really move forward with completing the final design (of the second phase)," she said. "We've been working on it for a long time, but this means we can complete that work."

The federal green light allows for a final design and for the public and private entities involved in the project to push for release of $160 million in federal funds for the extension, Walker said.

The first phase of the monorail, which was completely privately financed, will cost $650 million. The second phase is estimated to cost $454 million, Walker said.

Along with the $160 million in federal grants, the project backers, including the RTC, hope to secure another $150 million in low-interest federal loans. The RTC could contribute another $50 million.

And another $100 million would come through the sale of bonds to be repaid by fare-box and advertising revenue, similar to the funding arrangement on the first phase, Walker said.

He said the financing for the project should be complete by early next year. Construction of the second phase should take about three years, so the extension could open by late 2007 or early 2008, Walker said.

Local and federal officials are looking beyond the second phase to a third monorail segment that would connect the system to McCarran.

Whitmer said that the feasibility of extending the monorail to McCarran is under consideration.

Walker said with the federal approval Thursday, the early work can begin on the environmental assessments for the third phase.