Las Vegas NowMGM Mirage Scales Back on CityCenter Again
Construction defects are causing MGM-Mirage to postpone the opening of its Harmon hotel and spa and to cancel the construction of condominiums.
The Harmon hotel will not open until late 2010, a year behind schedule.
The partnership between MGM Mirage and Infinity World Development Corp. also said Wednesday that it is canceling the residential condominium part of the project.
"There was a flaw in the way in which some of the structural steel was installed," said Alan Feldman, MGM-Mirage.
The Harmon tower will shrink from 47 stories to 25. The 200 condominiuns were to be on the upper floors, 88 had already been sold. Ron Lynn, the head of the Clark County building department says the problems rest in the steel rebar in the concrete that lines the ceilings and floors.
"In some cases, they were put in the wrong place in the beam. In some cases, there were improper numbers. In some cases, they were imporperly tied," said Lynn.
The company says the moves and other steps will save $600 million but on the flipside, it also comes with a price.
"We are not going to generate revenue we would have from those residentail sales. We are not going to generate the revenues we would have from the expenditures of the people staying in this residences," Feldman said.
The hotel is one part of the 67-acre CityCenter complex on the Las Vegas Strip. When finished, the Harmon is expected to include about 400 rooms and suites. Construction of the Harmon structure and exterior will be finished, while completion of its interior will be postponed. All other components the CityCenter project, including the Mandarin Oriental, Vdara and Veer Towers, remain on schedule for a December 2009 opening.
