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Published Friday, Aug. 29, 2008 | 6:41 p.m.
Updated Tuesday, Oct. 28, 2008 | 10:15 a.m.
Sun archives
When MGM Mirage took longer than expected to secure bank financing for CityCenter, many saw their doubts that the $9.2 billion city-within-a-city would be finished on time, if at all, confirmed.
That was an overreaction, though perhaps the doubters can be forgiven based on the fact that CityCenter is the most expensive privately financed project in U.S. history and is taking shape during one of its deepest downturns.
No wonder that executives have taken pains to explain that CityCenter isn't like other projects that can't get financing these days.
CityCenter is still on schedule for a December 2009 opening and will be able to secure $3 billion in bank financing -- the final piece of the puzzle -- by Sept. 30, executives say. MGM Mirage so far has commitments for more than $2 billion of that package, MGM Mirage Chief Financial Officer Dan D'Arrigo said today.
That's months later than expected but at lower interest rates (in the range of 7 to 8 percent) than expected, he said.
Nearly 70 percent of CityCenter's cost is funded by an equity split between MGM Mirage and joint venture partner Dubai World, which owns half of CityCenter.
I heard one of the towers is going to be a shell until the economy improves.
Rabies
That is incorrect. No buildings will remain a "shell". In fact, Vdara condo-hotel will open as early as August 2009, and all other buildings will open by December 2009. Of course, certain events could change the schedule, but there are no delays based on current economic factors, and the latest news indicates they have almost completed financing the project. http://www.reuters.com/article/marketsNe...
Now that Dubai, with out money from oil, owns half of City Center there is no doubt it will finish. With limited flights and visitors broke at home from paying Dubai for their gas, how many other venues will go bankrupt. More rooms does not mean more jobs or more people, just more of our money going back to the mideast. I guess its OK, they already bought our banks and much of the infrastructure in this country. Harry Reid has done this to us by taking orders from Nancy Pelosi on energy. She admitted on Meet the Press she has invested in T. Boone Pickens company to subsidize and push natural gas, no wonder she is holding up drilling. Contact Harry Reid and TELL him to open American resource for American jobs.
email link
http://reid.senate.gov/contact/index.cfm...
Las Vegas
Lloyd D. George Building
333 Las Vegas Boulevard South, Suite 8016
Las Vegas, NV 89101
Phone: 702-388-5020 / Fax: 702-388-5030
that was on the rumor mill from an MGMMirage employee...you know how rumors are...mostly smoke, but sometimes there is a spark...
Rabies
My prediction is that Vdara will refund deposits on its condo/hotel and just open as a regular hotel. Cosmopolitan will refund all deposits and not be a condo/hotel either. The concept is dead for the time being.
Laguna,
I think your wrong. They have contracts with the buyers. If they perform, get the place open and occupiable, then there's no reason for them to release the current buyers from their contracts. Either the buyers will have to close, or they'll lose their deposits.