Monorail group: Delays may stall bond sales

In a successful effort to transfer a proposed monorail franchise to a nonprofit company, MGM Grand-Bally's Monorail LLC officials hinted Wednesday they might struggle to sell bonds if the project is further delayed.

Attorney Greg Jensen told Clark County commissioners the monorail group's goal is to begin selling bonds for the system by August.

"We are trying to get to market this summer and if we go much into August, our financial advisers indicate they are very concerned about getting these bonds sold," Jensen said.

The board approved the transfer of the franchise, despite opponents' arguments that members of the recently formed nonprofit have conflicts of interest and the transfer is premature.

Monorail supporters and opponents are waiting to hear whether the state will issue $650 million in tax-free bonds.

State Department of Business and Industry Director Sydney Wickliffe heard testimony from both sides in June and is expected this month to rule whether the project is viable and financially feasible. Her findings and any conditions placed on the bond issue will be forwarded to the County Commission and the state Board of Finance for final approval.

Venetian attorney Lance Earl argued Wednesday that the franchise agreement should not be transferred to the nonprofit until Wickliffe releases her findings.

Jensen, however, said only nonprofits are eligible for the tax-free bonds and Wickliffe might have delayed her decision until the nonprofit was formally recognized.

The nonprofit company has three directors: Terry Wright, president of Nevada Title Company, former county planner Terry Murphy and John Haycock, Jensen's brother-in-law.

"The directors have no transportation experience; they have conflicts," Earl said during a testy exchange between the two attorneys.

Earl also outlined a letter from Gov. Kenny Guinn's office in which the governor approves members of the nonprofit, as is required. He said the letter was less than enthusiastic.

"The governor accepts your representation that these individuals should be appointed and therefore approves their appointment," the letter says. "The governor does so only in the spirit of not wishing to hinder your efforts to form a nonprofit organization."

The commission approved the transfer with four conditions attached. The transfer only will be recognized if Wickliffe's findings are positive and the county accepts them. The Board of Finance also must approve the bonds, and the bonds must be issued.

As the monorail project slowly moves forward, opponents continue to fight it.

Earl veered off the subject of the franchise transfer numerous times to discuss conflicts of interest and explain that monorails are an old technology that will not serve as a foundation for a larger public transit system.

The Venetian also mailed video tapes of a "Simpsons" episode that satirizes local governments who fall for slick presentations rather than studying public need for a major project.

"It's interesting that in searching for a project to build their satires around ... the show's creators chose a monorail," an enclosed letter says.

Commissioner Erin Kenny voiced confidence in the monorail backers, particularly Bob Broadbent, chairman of the MGM Grand-Bally's monorail company and the former Clark County aviation director.

She expressed doubt that project engineers would build a monorail that would fail, leaving county and state taxpayers at risk of having to pay the bill.

"They intend to be here a long time and would never do anything to put the county and state in jeopardy," Kenny said. "Just because something hasn't been done anywhere else doesn't mean it can't be done in Clark County. We're a different animal."

The 3.9-mile monorail track would extend from the existing system that links the MGM Grand to Bally's hotel casino. The new leg would stretch from Bally's north to the Sahara hotel-casino.

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