CityCenter Project Hits Snag

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MGM Mirage, according to various media reports this morning, announced it was delaying the opening of the Harmon Hotel & Spa and the condo component of that building will be canceled at the huge $9.1 billion CityCenter development in Las Vegas. The Las Vegas Review Journal cited construction issues as the reason. Fox Business says the company plans on saving about $600 million from the action.

The Harmon opening has been pushed back to 2010 and purchasers of the 88 condo units already under contract would be entitled to refunds of their deposits. The Harmon had planned for 200 condo units. Residential units are still available in other parts of the development. The rest of CityCenter remains on schedule for a December 09 opening.

The news is not surprising, considering Vegas has been hit the hardest by the recession. MGM Mirage and partner Dubai World, according to the Review Journal, are still looking for additional financing for the project, which certainly won't be easy to come by until the credit markets loosen.

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