The Las Vegas Monorail Co. received permission Tuesday from Clark County to expand its route from the MGM Grand to Mandalay Bay.

The Las Vegas Monorail at the MGM Grand hotel-casino on Wednesday, Dec. 28, 2016, in Las Vegas. Erik Verduzco/Las Vegas Review-Journal Follow @Erik_Verduzco

The Las Vegas Monorail at the MGM Grand hotel-casino on Wednesday, Dec. 28, 2016, in Las Vegas. Erik Verduzco/Las Vegas Review-Journal Follow @Erik_Verduzco

Passengers board the Monorail at MGM Station Thursday, Oct. 27, 2016, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal Follow @bizutesfaye

The Monorail approaches MGM Station Thursday, Oct. 27, 2016, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal Follow @bizutesfaye

The Las Vegas Monorail runs past MGM Grand hotel-casino Thursday, June 2, 2016, in Las Vegas. Passengers can ride the Monorail from MGM Grand to SLS with stops along the way. (Ronda Churchill/Las Vegas Review-Journal)

Las Vegas Monorail passes by MGM Grand in Las Vegas, Wednesday, April, 27, 2006. MGM Mirage Inc., the world's second largest casino company, said Thursday its first-quarter profit increased 29 percent, driven by strong sales across all segments, including casinos and hotel rooms. (AP Photo/Jae C. Hong)

The Las Vegas Monorail as seen Wednesday, May 29, 2014, from the 15th floor of MGM Grand hotel-casino. The route of the monorail and its potential to transport workers on the Las Vegas Strip was one of the topics of discussion Wednesday at a panel discussion of transportation infrastructure. (Jeff Scheid/Las Vegas Review-Journal)

The Las Vegas Monorail heads northbound towards the MGM Grand in Las Vegas on Wednesday, Jan 15, 2014. (Chase Stevens/Las Vegas Review-Journal)

The Las Vegas Monorail makes a stop while heading northbound at the MGM Grand in Las Vegas on Wednesday, Jan 15, 2014. (Chase Stevens/Las Vegas Review-Journal)

The Las Vegas Monorail Co. received permission Tuesday from Clark County to expand its route from the MGM Grand to Mandalay Bay.

Before construction can begin, however, the monorail company needs to finalize the expansion’s design, conclude discussions with the county’s Department of Aviation and obtain financing for the project, President and CEO Curtis Myles said.





The 1-mile extension could take two years to construct and test.

County commissioners voted to approve a list of items that will help make the extension possible, including land-use permits and permission for the monorail company to continue drawing from a long-standing escrow account to pay for design and engineering costs.

But a resolution between the company and county, one that tipped heavily in the government’s favor, caused the most discussion.

The approved resolution will allow the monorail company to ask the county for up to $4.5 million a year in excess resort corridor room tax revenues. The money would be used to pay for track maintenance if no other money is available.

County Chief Financial Officer Jessica Colvin said the county is under no obligation to give the monorail company the money. Both parties agreed the county can rescind the resolution anytime.

Regardless, Myles said the resolution is of critical importance because it will allow the monorail company to sell rated bonds for its expansion project.

“This isn’t going to get us a AA rating, this is going to get us investment-grade rating,” Myles told commissioners.

Getting an investment-grade rating is expected to shave at least 1.5 percent off the bonds’ interest rate, a financial adviser for the project told commissioners. Previous estimates have put the project’s minimum cost at $100 million.

Commissioner Larry Brown called the resolution a “no-brainer” and moved for approval.

“I think we’re absolutely protected, but I’m hearing this resolution allows the monorail to have more strength in the financial market,” he said. “The monorail, whether you like it or not, is here, and this expansion could take us to the next level.”

Contact Michael Scott Davidson at sdavidson@reviewjournal.com or 702-477-3861. Follow @davidsonlvrj on Twitter.