On Jan. 12, the Las Vegas Convention and Visitors Authority (LVCVA) board agreed to pay The Boring Company (TBC) up to $6.25 million for the operation and management of the Las Vegas Convention Center (LVCC) Loop, beginning Feb. 1 and running through June 30, 2022.
According to official documents, the agreement noted a fiscal impact of $1.25 million in 2021 and $5 million by 2022. The board’s agreement with TBC may be extended for an additional five years after June 30, 2022.
The LVCC Loop will not charge fares as part of the agreement with the board. Revenue will be generated by the LVCVA through advertising, sponsorships and facility rentals.
The board agreed to pay the tunneling company $167,000 per month as a management fee to maintain operations and test the underground people-mover.
The document also stated: “The Agreement provides for an additional fee in the form of a Base Operations and Maintenance (O&M) Fee for full operation of the System. The Base O&M Fee is scaled for show size, with a maximum daily fee of $30,000 for the largest sized facility shows.”
Tesla vehicles with drivers will move people through the tunnels at the beginning of the system’s operations. However, the board expects autonomous operations with Tesla cars no later than Dec. 31, and has agreed to provide a renegotiation fee once the shift takes place.
The board also gave Elon Musk’s Boring Co. permission to dig more tunnels to connect...