The Las Vegas Convention and Visitors Authority (LVCVA) has agreed to extend, but shorten its operating agreement with The Boring Company (TBC) for the underground Convention Center Loop.
The first operating agreement, which sets out operation and maintenance standards, was set to expire on June 30, but provided the LVCVA with an option to extend it by five years.
Instead LVCVA board members voted 11-1 on Tuesday to extend the agreement by one year at a cost of $4.5 million.
The shorter extension is not because they have concerns about the Loop’s performance, but rather because they didn’t want to tie themselves to a long term deal while TBC is building out the larger Vegas Loop.
LVCVA President and CEO Steve Hill said the extension could provide opportunities for reduced system costs through autonomous operations and reductions in system overhead costs, reports the Las Vegas Review Journal.
The larger Vegas Loop is planned to have 51 stations stretching from one end of the city to the other, and be able to accommodate up to 57,000 passengers per hour.
Construction of the first stop on the new loop at Resorts World Las Vegas is nearing completion and scheduled to open this month.