I feel extremely curious about the construction costs given that the proposal says the Dugout Loop will transport just 250,000 a year at $1 fares. I suppose if it works the press alone could make the investment worthwhile.
I imagine they're planning to lose money on it to help push it through whatever regulators are in the way. Once they have a working proof-of-concept in a city as big as LA, it'll be a much smoother process to expand to other cities because they can just say "I mean, it worked great in LA!".
Think of it as a pilot project for your first client. Typically you bill a very low price that doesn't really even cover the bills, even in a SW Project.