Francois Badeau

 Photograph by Stephan Brown

This visionary talks about the sex appeal of monorails

and why Southern Californians can’t see it.

 

S

itting across from 52-year-old Francois Badeau on a sunny morning at Laguna’s Montage Resort, I find it hard to believe that the man in front of me is the visionary and main force behind one of Sin City’s flashiest new attractions: a monorail system linking several of the strip’s ritziest casinos. Badeau, who splits his time between Newport Beach and Las Vegas, has honest blue eyes, a naturally relaxed manner and a velvety French-accented voice that doesn’t seem nearly slick or old enough to spearhead the controversial $650-million project. But once Badeau starts to speak about the project – which has occupied the last 10 years of his life – all doubts fall away. If there’s one thing the Quebec-born lifelong businessman has, it’s passion. And one of the things he’s most passionate about is monorails. “Monorail is sexy transportation,” he insists. “People want to ride it.”

Still, like a $5,000 Valentino gown, it doesn’t fit all occasions or locales. Badeau found this out the hard way. In the ’80s, he tried to bring a monorail public transit system to Southern California, only to decide in the end his efforts were futile, partly due to a crashed economy, but mainly because of flawed views about public transportation. “Public transportation here is perceived as a punishment,” he says, “People want it, so others can use it and leave them alone on the freeways. [Southern California] is a land of people having love affairs with their cars.” There is a hint of a jovial tone in his words, but not much. The politicians and other planners didn’t like the idea of testing the skies above the OC Airport or the 405. And when Badeau pointed to Disney World as proof the monorail works – it carries 200,000 people a day – they would only reply, “That doesn’t count, people like it.” “In the end,” says Badeau, “it was a great learning curve.”

It curved him to Vegas, where all the elements seemed to exist in favor of a monorail system: For the past decade it has been the fastest growing city in the U.S.; it is the most-visited city in the world; it loves flashy attractions; there is no shortage of money and they love to gamble on things. “No consultant in the world,” says Badeau, by way of example, “would have said to Steve Wynn, ‘Sure, build a $1.5 billion hotel.’ The numbers wouldn’t add up. But he did it and it succeeded.”

In short, Vegas had the kind of thinking and dollars Badeau saw as essential for success. So, working “behind the scenes,” Badeau’s favorite way, he led a team of attorneys, accountants and researchers to get the state of Nevada to issue tax-fee bonds, which raised $650 million in September, 2000. (The bonds will be paid through passenger fares and advertising.) The following August, the project broke ground and is scheduled to open in early 2004. When it does, the nine new trains (the newest version of Bombardier’s M-VIs, which cruise above Disney World) are expected to transport up to 40 million people per year along a four-mile elevated track that stops at several top hotels and the LV Convention Center. Contracts are now being finalized for an extension to Downtown and the next stop will be the airport.

“This project was done so well,” says Badeau, “I hope that it shows people what can be accomplished. We built above the traffic, unlike a subway, so there was minimum disturbance to people on the street. It’s clean, efficient, quiet, nice to look at, and fun to ride.”

In fact, the cars will have very distinct looks. An integral part of repaying the bonds is the sale of advertising space on the cars. Starting at $1 million a year, they can be turned into a virtual billboard – and major companies like Motorola and Bacardi are already along for the ride. One of the first is Monster Energy Drink maker’s Hansen’s Beverages Co., who have signed a $10 million contract and shrink-wrapped one 138-foot “Monster Car.” Inside, the fun continues with video screens showing outtakes of the Vans Warped Tour and surf events by Laguna-based Lost Enterprises.

But will the public stand for such in-your-face commercialism? Badeau is betting yes. In many places this might be too bold, but in Vegas, Badeau sees the monorail as not just public transportation but another attraction. And the flashier it is, the better.

And this, it seems, is the paradox that is Badeau. Though on one level he is very nonchalant and open – he wears a casual shirt with rolled up sleeves and a baseball cap to our meeting – he is also someone who has succeeded in business since the age of 16 through sophisticated and savvy marketing. “I never went to college,” he tells me in the first five minutes, as if apologizing. “I just try to find a need and fill it by doing things my own way.”

A perfect example is when, as a young man, Badeau’s Titan brand cross country ski company was losing ground. He proposed making hockey sticks with the equipment. His partners called him nuts, but Badeau convinced them on the grounds that he saw not a hockey stick void, but massive marketing mistakes. Most of the companies simply gave their sticks to players and hoped kids saw them and then bought them. “But marketing is not that, it’s control of your destiny, your messages,” says Badeau.

So he went to a friend, Pierre Lacroix (now President and General Manager of the Colorado Avalanche), who knew hockey well, and asked him to find three kids he thought had a future. Lacroix did; Badeau signed them for $35,000 a year for five years each and actively promoted them. Two of those three kids were Wayne Gretsky and Mike Bossy. Next, Badeau created “Clash of the Titans” commercials, videos for stores and massive advertising and soon his new Titan brand hockey sticks were the fastest growing stick company in Canada.

To the Vegas Monorail, he’s applied that strategy along with decades of successful business sense. He sees the private backing of the project not as an assault on riders but as a benefit for them. It will make it exciting, clean and efficient, says Badeau, because the advertising companies have their names literally on the line. So, he says, people really will want to ride it. “They get a view, there are no red lights or traffic,” he says. “With monorail, we’re above all that.”

 

The Q & A

Who is your hero? Sam Walton for his vision.

Whom in business do you most admire? Warren Buffet for his integrity.

What is your favorite movie of all time? Trading Places with Eddie Murphy and Dan Akroyd because it provided an excellent perspective of life.  It tells us not take ourselves too seriously.

What future technology do you think will change the world? Today, we have so many technologies it is difficult to pick one.  At the end of the day, however, changing the world will require efficient human interaction, so I believe technologies that improve transportation and communication will have the greatest effect on the world.

What did you want to be when you grew up? I always wanted to control my own destiny so I wanted to be “independent” above all things.

Of what accomplishment are you most proud? To take something negative and make it positive. Transportation in most major cities is perceived as a punishment. With the Las Vegas Monorail I believe we’ve taken a negative and made it a positive experience for tens of millions of people every year.

If you could have been something different in your life, what would it be? If I had the talent I would like to have been a musician.

What is your life's motto? Persis-tence and integrity will always prevail.

What is the most beautiful place you've ever seen? There is no more beautiful place than the coastline of Southern California.

Where is the place you'd most like to travel to you haven't visited? I’ve been fortunate enough to travel extensively around the world. I’ve truly visited every place that I have ever wanted to see. With that experience, I’ve picked the one place I wanted to visit more than any other in the world and made it my home – the coastline of Southern California. ž

 

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