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twitterP.R. efforts low-key even as opening of CityCenter nears
Ulf Buchholz
A view of MGM Mirage’s CityCenter along the Las Vegas Strip.
Monday, Oct. 5, 2009 | 2 a.m.
Sun Archives
In normal times, a casino company within months of opening a major resort would use every opportunity to tout its virtues.
But until recently, MGM Mirage has been distracted by a steady grind of negative news surrounding CityCenter, its $8.5 billion complex that opens in December.
CityCenter was announced in 2004 with pitched excitement, the most ambitious commercial project in the country, a head-turning vision with six high rises and 7,000 rooms. But in time, various factors created a negative buzz.
• Early in the project’s history, critics said CityCenter would have too many hotel rooms and condominiums and too few gambling and other amenities to make a profit.
• CityCenter’s budget ballooned from $5 billion in 2005 to more than $9 billion in 2008, settling at $8.5 billion in early 2009.
• Twelve workers had died in 18 months, including six at CityCenter, with workers walking off the job in 2008 to demand safety improvements. But after the improvements, the deaths stopped. No workers have died since June 2008. (The Sun won the Pulitzer Prize for Public Service for investigating the deaths, uncovering cozy relationships between safety regulators, builders and local labor unions and pushing for improved safety standards.)
• CityCenter scaled back its Harmon hotel tower in February from 49 floors to 28 after revelations that reinforcing steel had been incorrectly installed. A subsequent county investigation revealed numerous false reports filed by county-appointed private inspectors who signed off on the work.
• CityCenter co-owner Dubai World sued MGM Mirage in March over the project, criticizing CityCenter’s budget and halting its share of construction payments. (Dubai World dropped the suit the following month after helping to negotiate a final budget and a financing guarantee.)
• The economy’s hairpin turn forced MGM Mirage to rescue itself from financial collapse this year by raising $2.6 billion in debt and equity, mortgaging some of it casinos, paying off more than $1 billion in debt and negotiating a reprieve from some of its loan requirements.
“It’s been a huge journey to get us from inception to where we are right now and it’s been rocky,” MGM Mirage CEO Jim Murren said during the company’s first quarter conference call in May.
A few news releases have described upcoming attractions at CityCenter, but media have yet to be invited to tour the site to feed excitement for the grand opening. In fact, the groups that have toured the site so far are “largely people we’ve been begging money from,” Murren said in May. They were “blown away by the quality and scale of what we’re trying to accomplish here,” he added.
During the company’s first quarter earnings call, CityCenter CEO Bobby Baldwin said the upside to all the bad news was that “there’s not anyone on the planet who doesn’t know what CityCenter is.”
CityCenter Extends Job Offers
City Center is extending 12,000 job offers during the month of September. Many positions will go to locals and a few people will move to Las Vegas for an opportunity to work for the property.
Over the past couple of months, MGM Mirage has changed the conversation, hosting media to discuss the award-winning, environmentally conscious designs of CityCenter buildings Aria and Vdara and touting the filling of 12,000 jobs.
The company also says convention bookings are up for its resorts next year and that rooms in CityCenter’s casino resort, Aria, are booking at higher-than-market prices and at a faster clip than Bellagio’s rooms in the months prior to that hotel’s 1998 opening.
Murren has said he believes CityCenter will be largely responsible for an expected increase in Las Vegas visitation next year, benefiting MGM Mirage properties and competitors.
“It is the Mirage and Bellagio of its time,” he said during the company’s second quarter conference call in August.
After 15 years of no new construction on the Strip, the Mirage’s opening in 1989 reinvigorated Las Vegas tourism and launched a new run of resort construction.
Bellagio similarly raised the bar, its blowout profits inspiring a second wave of high-end resorts that, until the recession, successively boosted tourism.
That boom period now ends with CityCenter. The other multi-billion-dollar projects in town, Echelon and Fontainebleau, remain unfinished — Echelon mothballed to await better times and Fontainebleau frozen in bankruptcy.
Some analysts say CityCenter’s best-case scenario involves stealing business from competitors without significantly cannibalizing company-owned properties — hardly the surge in demand created by previous resort openings.
It’s against this backdrop that MGM Mirage will stage a grand opening that will be more subdued than what the occasion would have called for in headier times. But at least it will be open, and the company can exhale.
CORRECTION: This story was changed to correct the number of construction deaths at CityCenter. | (October 5, 2009)
Discussion: 40 comments so far…
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It's a crying dam shame a dozen workers were killed on the city center project. I could imagine job site safety might have been lacking in some of the deaths, but with so many workers found to have been routinely drunk and or stoned on the job we can only imagine that had something to do with the high death toll as well.
The last I heard, Las Vegas is the meth capital of the world and that stuff rots your brain from the inside out. Not a good thing for working in a dangerous enviroment.
right on thumper, organizations that are supposed to protect us have become on the take people, especially in nevada. our politicans on both sides of the aisle have been corruted by corporations against us
The world will watch the first figures of the MGM Q1/2010 results. It will be either a surprise or a shock-wave rolling over Wall Street. I would not put my money on MGM stocks to jump up after grand opening. The times for a such a mssive grand opening could be better, the number of high rolling gamblers is limited, and there is a lot of gambling available in Vegas already.
On the other hand, people usually go and check out new casinos and new slot machines instead of gambling at places they already know well. This could lead in a little higher traffic and revenue for MGM and little less business for Harrah's. Therefore, could be that the Q1 results will look nice but then lead to a consolidation in the 2nd and 3rd quarter of the upcoming year. I still don't think that Vegas needs so many new gambling establishments if the other casinos are suffering and fighting for their customers.
From Switzerland
They were planning to use this promotional slogan, but changed their minds:
"Welcome to CityCemetary. Do you feel lucky? Maybe the buildings won't collapse on your head because of shoddy inspections. But you can't hold us to that legally. Have a great time!"
Thumper troll continues to spew what he think the truth is and everyone else is wrong.
Except for two deaths, the first two. The other deaths were caused by the workers own unsafe actions. Tell me if it sounds like a good idea to oil a worklift while it is running? Unless you have been involved in the investigations you don't know the FACTS. How do you know anything when all you do is sit in front of your computer and post on this forum? You only know what people with an agenda want you to know you troll.
Do us all a favor and find a different forum to troll. Your kind of constant sewage spewing doesn't contribute anything positive to this forum.
Well lets see;
There were the two killed when they removed pins on a form wall prematurely in efforts to get off early.
There was the guy who climbed in the mast of the manlift to oil his rig after his boss told him to wait until they could lock-out together.
There was the guy who fell 54 feet after being told to tie off and refused.
There was a man who put himself in a pinch point on the crane.
I am just wondering where 12 came from?
They were killed sadley, in part because they made poor decisions.
But then it is always easier to blame someone else for our mistakes rather than face the mirror to find the person who made the first wrong decision.
When the Las Vegas properties were "Casino's" they were guaranteed to make money.When they became "Resorts",they gave their edge away.Bigger is not always better.We used to expand out of necessity.Hotels were full of gamblers.Now they build hotels and try to figure out how to fill them.Progress and competition is one thing.Greed is another.Stupak wanted to build A casino called the TITANIC. MGM Mirage did build it.It's called City Center.
By the way Thumper;
Why don't you qualify your accusations. If in fact you were in the "trailer when money was exchanged" in a pay-off and didn't report it, you sir are guilty of a criminal act.
Turn yourself in to the DA and have some integrity.
While your waiting for the cab to give you a ride, have another glass of kool-aid.
In this thread, there's no need to speculate about the cause of the deaths of the construction workers at CityCenter. This link is in the above story but for those of you who are reading over it:
http://www.lasvegassun.com/news/topics/c...
The Las Vegas melt down has become Quite a spectator sport. Echelon, Fontainebleau, City Center. I cant believe no one saw this coming!
Give it a rest Thumper.
Your personal observations are meaningless so far as I'm concerned.
Everything in my post was covered in recent news stories by this paper or the RJ.
And still, Las Vegas Sands, Boyd and MGM stocks are flying higher than they possibly should. Why is that? BTW, people may laugh about the Arizona Charlie's on Decatur or perhaps the Eldorado Club in Henderson or the El Cortez Hotel in Downtown, LV. It doesn't change a thing that these properties are running well. On a low level, maybe, but they're running. Unlike MGM and the Planet Hollywood Craze. Mega-Monster Casinos, super big size XXL, but now wondering how to fill the rooms. Caesars went so far they finished a complete tower with all rooms and amenities just to know that they have a "tower in reserve". It's not even in operation , although it's finished!!!! How crazy can a company be to do such things and then , later, use a tower just for decoration purpose!!!!
It seems as though investors are high on Vegas, paying customers not so much.
Boris Have u been to El Cortez or Arizona Charlies lately? U wouldn't want to send your mother in law there! They are flea bags and should be imploded!!
Yeah, lets implode arizona charlies and build a 20 billion dollar resort with another 15, 000 empty hotel rooms nobody can fill.
"The Las Vegas melt down has become Quite a spectator sport. Echelon, Fontainebleau, City Center. I cant believe no one saw this coming!"
And you did mrjb? Well, you must be now be a multi millionaire from shorting the casino stocks, correct?
Boris-Caesars tower is only finished on the exterior. The interior will be completed when the market inproves.
Prediction : the opening of the City Center will cause a loss of 15,000 to 20,000 jobs in the las vegas (lost wages) economy over the next 12 to 24 months as the new kills a disproportionate number of old casinos and costs activity for other strip properties! On that cheerful note - have a good day!
Did I read it right?
"subsequent county investigation revealed numerous false reports filed by county-appointed private inspectors who signed off on the work."
I thought the county said that MGM appointed those consultants. If in fact it was the county's appointed consultants, then all those county officials need to get fired for misleading everyone and pointing figers at all but themselves. Hypocrits!
hehe, logic-should-rule, are you serious about it? 100 per cent positive on your statement? You lol, nothing finished, just from the outside? hehe, this goes hand in hand with a casino full of plastic :)
Hey By chazbean, I have been to the El Cortez and Arizona Charlies on Decatur this spring. It's 6 months ago, didn't know what happened since, but my overall impression on these casinos is that it hasn't changed much. Sure, you can't compare the "El" with Mandalay Bay. it's just an old hotel, but it's got something that the other hotels on the strip don't have: History and a little bit of charme. The bellman has been there for years, and so have the frontmen. OK, the dealers at the b-j tables needs an upgrade and more professionalism, but what can you expect if you only get paid about 10 dollars an hours, at the most, all tips included?
I like these lower priced casinos much more than a Venetian or a Caesars Palace . You know why? Because they have their feet at the bottom. Btw, the East Side Cannery needs to be mentioned as well. It's new, but its price level for the rooms is unbeatable. Ok, the construction is not sound-proof, but it's ok. The rooms are really nice and 30 dollars per night, where in the world can I get this?
The El Cortez rooms in the main tower are clean and ok, about the same like at the Orleans, and the older rooms at the Vintage tower or above the garage are very old but still clean. Unlike the Binion's or the Vegas Club and Plaza rooms, they need to be fixed and until then nobody should be allowed to stay in there. Awful, most of the Binion's rooms have toilets that don't flush down your stuff anymore. It's really disgusting and I am not exagerating here, it happens several times.
To the contrary, the El Cortez rooms are ok and it seems like they make sure the people are being treated nicely. Also, they got rid of the "garbage people" to a degree that you can feel safe again. I have been visiting the El Cortez for years and noticed that terrific up-grade since they remodeled their main tower. I also noticed that they removed many machines and installed a much better air-conditioning. Sure, it's not Mandalay Bay or the Mirage, but it's the El Cortez :) The only thing they should do is get a better cook in the coffee shop. These bacon and eggs and other breakfast specials needs an upgrade. Compared to other coffee shops in town that I have visited, this Katje's Corner coffee shop or what it's called, it needs some culinarial upgrade on the menu.
I don't think that the big hotels on the Strip can go through this recessions without change in ownership. Some hotels need to be sold I guess.
From Switzerland
haha!
why advertise when the las vegas sun gives these guys a free "article" ( really, just a big press release ) every other day?
they're getting all their p.r. and marketing done for free.
If you all look at the contractor to City Center and other projects that have had major difficulty with inspections, etc - it leads back to one company - Perrini !!Every project they touch in the US has major over-runs, safety problems and yes, even deaths..someone should take a close look at them !
that's the plan:) but, stevem, don't forget, only insiders and smart people get to read these comments, so it's probably not very fruitful.
I am trying anything possible to get your economy working again. You guys simply need a jump start. The managers should listen to what the people want , and then give out orders accordingly. And then, maybe in 6 months for now, we could see the first positive lights at the horizon.....:)
From Switzerland
Thank you SUN for helping to clarify these issues. I appreciate the Community involvement that these comment pages present to the readers, and that the SUN offers them as a talk-back and journalism feature.
It is a terrible tragedy when ANYONE loses their life on-the-job. Construction, just after Farming, is the SECOND most dangerous job around.
I think the real question is, in hindsight, how could this have been prevented. Granted, not every tragedy or mishap is preventable. But if one does look, essentially in hindsight, one will find that the seeds of our current situation were sowed years ago.
One needs only to look at previous news stories regarding the corruption of the Building Inspection Divisions of southern Nevada. Inspectors soliciting "donations", whether for worthy causes or not, and stories of other "look the other way" acts of ALL interested parties, either by elected officials, administrative personnel, inspectors, supervisors, contractors, engineers, and realistically ANYONE who knew to speak up, BUT DIDN'T, or ANYONE who wasn't qualified to speak up (but hired anyway), AND COULDN'T, significantly contributed to the overall problems we have now.
We, in essence, have created a see-no-evil, hear-no-evil, speak-no-evil work climate in Nevada.
It's truely up and down the ranks.
What is so desparately troubling is that we have created the most glittering place on earth, but if one pulls up the skirts on the glitter, one will find that the stockings are very, very badly soiled.
Somehow the discussions above got way off the point. The fact that this mega project is opening in two months with next to no ballyhoo is yet further proof that MGM Mirage is out of touch with the public at large. Where are the Facebook or Twitter pages to communicate with the millions of people around the world who are online savvy? Where are the weekly teaser releases about the "exciting" new things that the properties will feature? On top of that you have a national press who could care less. There's nothing unique or spectacular about this project other than its size and price tag.
What we have here is the direct result of a bloated and decaying corporation with too many "executives" with little to no imagination who believe that their brand is enough to get people in the door. Forget the fact that most of the changes they've made to their properties have been a complete debacle resulting in plummeting revenues.
Lastly, and most importantly, what exactly IS CityCenter? Look out on the Strip and see who's here. To the millions of tourists who come here looking for entertainment, unique diversions, etc. CityCenter looks like nothing more than a massive conglomeration of glass buildings like those found in the middle of every metropolitan area in the United States. I would wager that the PR people at MGM have realized that they've got little to work with. The mobs of people who come here looking for good food, a show or two and gambling (that actually pays) could really give a toot that a building is "green". I don't see a bunch of twenty-somethings standing in line to get into PURE discussing the merits of green architecture and making a point of visiting CityCenter the next day. And as to Baldwin's extraordinarily pompous statement that there's no one in the world who knows what CityCenter is, think again. Most people who don't live here still look at that thing when they go past it and say "what is that supposed to be..." The sad truth is that nearly all of CityCenter's reputation and press coverage has been predicated on negative reports of construction deaths, poor construction, graft, unhappy investors, and the project's massive cost. That kind of fame, Mr. Baldwin, isn't exactly what you should be looking for.
I don't know what is the bigger construction disaster--Yucca Mountain or City Center. They are both going to be empty holes. It's fitting that many of the comments refer to City Center as a third world jobsite, since one of the builders is Dubai. That's a country they built with slave labor. (see http://blogs.abcnews.com/theblotter/2006...
I wonder how many men died working on the world's tallest building featured so prominently in the 2010 Guinness Book of World Records.
Thumper;
From the looks of this thread you may want to remember,
It is better to be thought a fool than to open your mouth and remove all doubt.
Is that the best you have? Call me names that in context of truth have no association?
Make comments maligned with your ignorance?
Drink some more Kool-Aid. like the kind they served in Jonestown. Tool.
How many of the deceased tested positive for drugs and alcohol? How many people died in the construction of Hover Dam? Maybe if the workers were drug and alcohol tested daily there wouldn't be a discussion now would there. Thumper, take the tin foil off Son, "palm greasing" goes on everyday and always will in every city in the world.
In any other city, City Center would be heralded as a beautiful addition to it's skyline, and probably given some kind of award and cover exposure in Architect Magazine and on and on.. HOWEVER.. in Las Vegas this thing comes off as a shining example of everything that was wrong with the real estate bubble and collapse of the worldwide economy. It is a monument and stigma that will take years to undo, and unfortunately as always Las Vegas reflects the highest degree of where capitalism and greed peak. Sadly it will remain half empty and probably get sold or worst case bank auctioned off piece by piece to individual buyers at a fraction of the cost of construction. Only then will it's potential for profit be realized at this reset economic level down the line. As for Mr. Kirkorian's record of dangerous work conditions and cutting corners goes way back in Vegas history which resulted in the great MGM Grand fire disaster where the sprinkler system was cut from the budget at the severe cost of human life and the worst hotel fire disaster in modern history! Sorry sir but apparently you didn't learn your lesson then, now perhaps this white elephant is your Karma train a pulllin into the station...
environprotector, that is one powerful post. Very interesting thoughts there.
Denro, Thanks.. I know that Kirk K. was personally tormented by his mistakes back then, but then again powerful figures like him who are responsible for huge things like building hotels,theme parks and whatever else, have to be safety first thinking people.