Las Vegas Monorail
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Transcript Las Vegas Monorail
Innovative Financing
of Transportation
“Megaprojects”
Center For Urban Infrastructure
Transportation Financing Conference
March 7, 2003
Barney A. Allison, Esq.
Nossaman Guthner Knox & Elliott LLP
A Case Study:
Las Vegas Monorail
Project Overview
Alignment
Innovative Elements
Farebox Revenue Bonds
Subordinated TIFIA Loan
FTA Grant Anticipation Notes
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Project Overview
Driverless, state-of-the-art urban transit
grade system on Las Vegas Strip
Current 1-mile, two station system to
be expanded to 4 mile system for
Phase I and 2.3 mile, four station
extension for Phase II
Servicing 8 major resort properties,
27,000 hotel rooms and world’s largest
convention center
Phase I expected in-service date is
2003; Phase II expected to begin
construction by the end of 2003
Can serve as backbone for future
regional fixed guideway and bus
systems
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Alignment—Phase I
Sahara
Circus/Circus
Convention Ctr Dr
Desert Inn Rd
Desert Inn
Golf
Club
Spring Mtn Rd
Treasure Island
Venetian
The Mirage
Sands Avenue
Harrah’s Imperial
Palace
Caesar's Palace
Flamingo Hilton
Bally's Paris
Koval Ln.
Bellagio
Aladdin
Monte Carlo
Las Vegas Hilton
Las Vegas
Convention Center
Convention Center
Station
MGM Grand
New York, New York
Tropicana Rd
Excalibur
Tropicana
Luxor
McCarran
International
Airport
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Existing Alignment
Projected Alignment
Innovative Elements
Exclusive Private Franchise
Design-Build-Equip Contract
15 year Private Operations and
Maintenance Contract
Tax Exempt, Non-Recourse Financing
through Non-Profit Corporation
Farebox Revenue Bonds secured by
Net Pledge
Advertising and other Ancillary
Revenues
Contractor Subdebt
Adjacent Property Owner Subdebt,
ROW contributions and Construction
Subordinated TIFIA Loan and FTA Grant
Anticipation Notes Financing for
Phase II
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Farebox Revenue Bonds
$600,650,000 Series 2000 Revenue
Bonds sold in September, 2000 for
Phase I
Anticipate another $83.5 million in
revenue bonds needed for Phase II
Standalone, net project revenue pledge
“Investment grade” ridership and
revenue study
Innovative fare collection techniques
Advertising revenues
15-year operation and maintenance
agreement includes capital replacement
and security costs; fixed cost contract;
parent guaranty
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Subordinated TIFIA Loan
$105.5 million TIFIA Loan for Phase II
TIFIA credit assistance available for
projects of “regional significance” with
total capital costs in excess of $100
million; TIFIA financing may not exceed
33% of “eligible” project costs
$2.6 billion available for FY 2003
Project environmental approvals
required prior to funding
Senior debt must be “investment
grade”
Flexible repayment schedule
TIFIA repayment subordinate to senior
debt unless there is an “act of
bankruptcy”
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FTA Grant
Anticipation Notes
Request for FTA Section 5309 “New
Starts” Discretionary grant in the
amount of $159.7 million for Phase II
FTA project “scoring” based on
financial rating, project justification,
cost-effectiveness, operating
efficiencies and environmental benefits
Execution of Full Funding Grant
Agreement; compliance with FTA
requirements
“Pay as you go” vs. GANS?
Reauthorization and Appropriation Risk
“Back-up” pledge
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