CityCenter Announces Scope Changes
07 Janeiro 2009 - 11:34AM
PR Newswire (US)
The Harmon Hotel & Spa Opening to Be Postponed and The Harmon
Condominium Component to be Cancelled LAS VEGAS, Jan. 7
/PRNewswire-FirstCall/ -- CityCenter Holdings, LLC, a joint venture
between MGM MIRAGE (NYSE:MGM) and Infinity World Development Corp,
today announced certain scope changes related to The Harmon Hotel
& Spa which include postponing the opening of the hotel to late
2010 and cancelling The Harmon residential condominium component.
CityCenter Holdings, LLC is currently developing a spectacular
67-acre vertical city on the Las Vegas Strip. The Harmon is just
one component of the CityCenter complex. Once complete The Harmon
Hotel & Spa will feature approximately 400 rooms and suites.
The Harmon as developed would have had approximately 200
residential units, of which 88 are under contract to be sold.
Purchasers will be entitled to receive refunds of their deposits,
but will be given the opportunity to purchase units at the
Residences at Mandarin Oriental Las Vegas, Vdara and Veer Towers.
Construction at The Harmon will continue through completion of the
structure and exterior, with interior fit out to be deferred. With
the cancellation of The Harmon residential component as well as
other additional cost savings the company now anticipates total
cost savings of approximately $600 million up from its previously
stated $400 million. In addition, by postponing The Harmon Hotel by
one year CityCenter will defer approximately $200 million in
construction costs to complete the interior fit out of The Harmon.
"By cancelling The Harmon condominium component, we will be able to
avoid the need for substantial redesign of The Harmon resulting
from contractor construction errors," said Robert Baldwin,
President and CEO of CityCenter. "In taking these steps related to
The Harmon we can remain focused on maximizing the operating
performance of Aria, Mandarin, and Vdara to their desired levels."
All other components of CityCenter remain on schedule for a
December 2009 grand opening. Aria Resort & Casino is a dramatic
soaring hotel tower designed by Pelli Clarke Pelli architects and
is CityCenter's centerpiece. The sophisticated, contemporary design
will be demonstrably different from any building that has preceded
it and will provide a rich variety of experiences at street level.
The resort will feature approximately 4,000 rooms and suites,
150,000-square-foot casino, fine dining and world-class
entertainment. The Mandarin Oriental Hotel & Residences will
feature 400 hotel rooms and 227 residential units and will be
managed by the Mandarin Oriental Hotel Group. Veer Towers will
contain 670 residential units in two towers surrounded by the best
retail, restaurants and entertainment. Vdara is a 1,495
hotel-condominium tower designed by Rafael Vinoly. Crystals retail
and entertainment complex will offer approximately 76 outlets
featuring high-end fashion, boutiques, dining and entertainment
venues. "The construction progress to date on this enormous project
is nothing short of incredible," said Mr. Baldwin. "Over the next
11 months we will begin energizing these architecturally beautiful
buildings with the hiring of more than 12,000 individuals for this
dynamic resort complex. Creating this many jobs will have a
tremendous impact for both Las Vegas and the State of Nevada for
many years to come." "We have full confidence in the long term
future of the Las Vegas market and the success of CityCenter," said
Chris O'Donnell, Chief Executive Officer of Infinity World
Development Corp. "This is an appropriate action in the current
circumstances." In October 2008, CityCenter secured a $1.8 billion
senior bank credit facility which can be increased to $3.0 billion.
Both sponsors continue to actively pursue additional financing for
the project. "These scope changes received overwhelming support
from our CityCenter bank group," said Dan D'Arrigo, Executive Vice
President and CFO of MGM MIRAGE. "CityCenter has two supportive
sponsors who are fully committed to this project. We will continue
to seek financing that is in the best interest of CityCenter as
well as its sponsors." About CityCenter: CityCenter is an
unprecedented urban metropolis that will open in late 2009 on 67
acres between Bellagio and Monte Carlo resorts on the Las Vegas
Strip. CityCenter is a joint venture between MGM MIRAGE (NYSE:MGM)
and Infinity World Development Corp, a subsidiary of Dubai World.
CityCenter will feature ARIA, a 61-story, 4,000-room gaming resort;
three luxury non-gaming hotels including Las Vegas' first Mandarin
Oriental, The Harmon Hotel & Spa and Vdara Hotel; Veer Towers,
the development's only strictly residential buildings;
approximately 2,400 condominium residences; and Crystals, a
500,000-square-foot retail and entertainment district. CityCenter
also will feature a $40 million public fine art program with works
by acclaimed artists including Maya Lin, Jenny Holzer, Nancy
Rubins, Claes Oldenburg and Coosje van Bruggen, among others.
CityCenter is a design collaboration between MGM MIRAGE and eight
internationally acclaimed architectural firms including Pelli
Clarke Pelli, Kohn Pedersen Fox, Helmut Jahn, RV Architecture LLC
led by Rafael Vinoly, Foster + Partners1, Studio Daniel Libeskind1,
Rockwell Group and Gensler. Charting a new course for responsible
growth in Las Vegas, MGM MIRAGE is pursuing the U.S. Green Building
Council's Leadership in Energy and Environmental Design (LEED)
certification at CityCenter. As planned, the 18-million-square
foot, multi-use project will become one of the world's largest
environmentally sustainable urban communities. For more information
about CityCenter, please visit http://www.citycenter.com/. About
MGM MIRAGE: MGM MIRAGE (NYSE:MGM), one of the world's leading and
most respected development companies with significant holdings in
gaming, hospitality and entertainment, owns and operates 17
properties located in Nevada, Mississippi and Michigan, and has 50%
investments in four other properties in Nevada, New Jersey,
Illinois and Macau. MGM MIRAGE is developing major casino and
non-casino resorts, separately and with partners in Las Vegas,
Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E.
MGM MIRAGE supports responsible gaming and has implemented the
American Gaming Association's Code of Conduct for Responsible
Gaming at its properties. MGM MIRAGE has received numerous awards
and recognitions for its industry-leading Diversity Initiative and
its community philanthropy programs. For more information about MGM
MIRAGE, please visit the company's website at
http://www.mgmmirage.com/. About Infinity World Development Corp:
Infinity World Development Corp which is a subsidiary of Dubai
World, a major investment holding company which wholly owns or has
substantial interest in a portfolio of businesses, owns 50 percent
of CityCenter. The Dubai World Group has more than 50,000 employees
in over 100 cities around the globe. For more information about
Dubai World, please visit the company's website at
http://www.dubaiworld.ae/. Statements in this release which are not
historical facts are "forward looking" statements and "safe harbor
statements" under the Private Securities Litigation Reform Act of
1995 that involve risks and/or uncertainties, including risks
and/or uncertainties as described in the company's public filings
with the Securities and Exchange Commission. DATASOURCE: MGM MIRAGE
CONTACT: Investment Community, Dan D'Arrigo, EVP & Chief
Financial Officer, +1-702-693-8895, or Media, Alan M. Feldman,
Senior Vice President of Public Affairs, +1-702-650-6947, , both of
MGM MIRAGE Web Site: http://www.citycenter.com/
http://www.dubaiworld.ae/ http://www.mgmmirage.com/
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