Las Vegas Mega Development on Shaky Ground
A major retail and tourist project in Las Vegas -- what some are calling the largest project in the world -- is stumbling amid the recession. Its developers and the city are unsure of its future.
"[T]he $9 billion development named CityCenter -- touted as the city's most ambitious endeavor -- has come to symbolize a global retail and leisure slump and the city's struggles to come to grips with crushing unemployment and dwindling casino revenue."
"Partners MGM Mirage -- struggling to bankroll the project's ballooning cost -- and Dubai World had pondered placing the development under bankruptcy, thrusting its future into question, sources say."
"The complex is scheduled to open in phases starting late this year, although analysts say it's unclear if that target will be met."
"Motorists and pedestrians slow to gawk at buildings glittering in the desert sun, while workers in white hard-hats and orange vests throng the site."
"But trouble is brewing beneath the surface. In March, Dubai World, the development arm of the United Arab Emirates, sued MGM Mirage, claiming mismanagement and wanting out of further financial commitments. The U.S. company hired bankruptcy counsel, setting off alarms about solvency. And the company was forced to inject an emergency $200 million to keep construction going."
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