Saturday, March 13, 2010
The Las Vegas Sun reports that the $8.5 billion white elephant otherwise known as MGM Mirage/Dubai World's CityCenter project will soon be the proud owner of a nearly half billion dollar "mechanics' lien" as, apparently, some bills are going unpaid.
MGM Mirage said it would dispute the claimed amount and also signaled it has counterclaims over construction defects at the Harmon Hotel part of the project, where construction has been suspended. When work resumes, it's scheduled to be completed at 28 floors, rather than the planned 49 floors.There's a bit more detail at the LV Sun and in this report from Reuters - it seems this is not the first time that paying the bills has been a problem for CityCenter managers.
"CityCenter believes that its actual obligation to the general contractor is substantially less than the amount claimed and that it is also entitled to significant offsets against the claimed amount. CityCenter intends to pursue all of its rights and remedies against the general contractor, including arbitration,'' MGM Mirage said in a regulatory filing.
"While CityCenter’s investigation into the general contractor’s potential liability regarding the Harmon Hotel is continuing, and there can be no assurance at this point as to the ultimate outcome of any action CityCenter may undertake, CityCenter believes that the amount of its claim against the general contractor may exceed the amount of CityCenter’s estimated remaining liability to the general contractor,'' MGM Mirage said in its filing.