Monday, Dec. 4, 2006 | 7:21 a.m.
Curtis Myles has been a little on edge lately, and it has nothing to do with the Las Vegas Monorail Co.'s low passenger counts, subpar credit rating or the blistering he routinely takes from critics in the press.
Myles, president and chief executive of the monorail company, knows that his presentation before the Clark County Commission on Wednesday is crucial to the future of the monorail.
He needs commissioners to approve its extension to McCarran International Airport, which will go far in turning around the fortunes of the beleaguered monorail.
With the monorail struggling since it began operations in 2004, even critics say the high-tech train's success could hinge on developing a $500 million link between the airport and the resort corridor. Myles is bound to hear from critics when the proposal is brought to a public hearing, scheduled for the afternoon session of a commission meeting dedicated to zoning matters.
About 20,000 passengers ride the monorail daily, despite initial forecasts that the system would carry 53,000 passengers daily. Earlier this year, credit analyzers Fitch Ratings reduced the company's rating to "junk bond" status.
The monorail company has adjusted its pricing structure to maximize revenue from the people who ride it the most - tourists. That has resulted in a backlash from visitors, further reducing ridership.
But Myles continues to look at the big picture - and is haunted by the images of Strip gridlock if he fails.
"We're building 40,000 hotel rooms over the next few years," Myles said. "The streets around the resort corridor are already congested. How are the people going to get around when those new rooms come online?"
Myles noted that there are no plans by any government entity to add any lanes to streets between McCarran and the Las Vegas Strip.
"There's nothing on the (Interstate) 215, nothing on Paradise, nothing on Tropicana," he said. "The monorail has to be part of the solution."
Myles said that while most people point to a monorail extension to the airport as part of the solution, and he believes county commissioners agree, he's not taking anything for granted.
That's why monorail officials have been meeting business leaders along the proposed route corridor, which extends from the existing terminus at the MGM Grand to Koval Lane, Harmon Avenue, Swenson Street and Russell Road to the proposed Terminal 3 at McCarran.
Myles is armed with a satchel full of supportive letters from MGM Mirage, the Hard Rock Hotel, the Morgans Hotel Group, Eagle Vegas LLC, the Edge Group and the Hofbrauhaus Las Vegas as well as UNLV.
"The future of Las Vegas is contingent upon the positive experiences of our visitors, and mobility is one of the key issues to maintain and improve these experiences," MGM Mirage Chief Executive Terry Lanni wrote the County Commission.
The airport extension would be 4.2 miles long - slightly longer than the existing stretch between the MGM Grand and the Sahara. The company wants up to six stations along the route, which would run on concrete guideways up to 100 feet above street level.
Stations are proposed at the site of the future W Resort Hotel on Harmon Avenue, the Hard Rock Hotel and somewhere along Swenson Street near the Thomas & Mack Center. Two stations are planned at McCarran, one at Terminal 1 at the north side of the parking garage and at the future Terminal 3, between the planned terminal building and a parking garage. A maintenance building also is planned at the McCarran end of the line.
Probably the biggest question from the public is whether taxpayers could be left holding the bag if the monorail extension is a failure.
Myles says no.
The company plans to sell outside investors on the monorail plan. The initial $650 million system was built with bonds, and the bond holders - not the taxpayers - would take the hit if the system is a flop.
The monorail company plans to approach prospective investors after it has a comprehensive ridership study that is expected to be completed within a few weeks; a financial report that will explain how fare box and advertising revenue would repay the bonds; and the Clark County approvals the company is seeking Wednesday.
"I'm not going to give specifics until the (ridership) model is completed, but I can say that the numbers with the airport extension are robust," Myles said.
When those reports are shown to potential investors, Myles is hopeful that there would be enough interest in financing not only the link between the MGM Grand and the airport, but also a track on the west side of the Strip, the next component of the monorail plan.
But none of that can happen until the county gives its approval.
"What we do this week is a critical, critical step," he said.
