Economic analysis of a monorail link between the Stratosphere Tower and Downtown Las Vegas

The Economic Feasibility of a Monorail Link between the Stratosphere Tower and Downtown Las Vegas" study was sponsored by the Stratosphere Corporation in association with Boyd Gaming Corporation, the City of Las Vegas, and Nevada Power Company. The Stratosphere Tower is evolving as a mega-resort on Las Vegas Boulevard; however, in a location which is distant both from Downtown Las Vegas and the "Strip". The downtown property owners, including Boyd Gaming Corporation, are experiencing increasing competition from the:"Strip" mega-casinos which is now offset with the success of the Fremont Street Experience. The overall objective of the study participants was to assess the feasibility of developing a monorail transit system between the Stratosphere Tower and Downtown Las Vegas. This objective, supported by available resources of the study sponsors and possibly other property owners, presents a unique opportunity for the City of Las Vegas to assume a leadership role in a venture which would make an impact in the emerging trend of public/private ventures. In addition, the overall marketing for the properties along the study corridor and in the downtown area could be planned comprehensively to maximize mobility between the properties through the application of appropriate transit technology. The ultimate goal is to initiate a Las Vegas wide monorail transit system which would serve the properties of the participants and other selected locations. Jakes Associates, Inc. developed a custom economic model in order to derive the projected return on investment. This model included a patronage projections with and without induced trips. Our extensive cost analysis, in addition to the typically assessed life cycle costs, included revenue projections both from fare collection and induced revenues to our clients. Our work resulted in a specific net present value analysis of the return on investment which proved that significant economic value could be achieved. Our report generated extensive publicity in the local press.