CityCenter, the joint venture between MGM Mirage and Dubai-based Infinity World Development Corp, has announced today 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. The Harmon is just one part of the CityCenter complex and 88 of the cancelled 200 residential units had been contracted for sale. The purchasers will have their deposits refunded or be able to buy units at the Residences at Mandarin Oriental Las Vegas, Vdara and Veer Towers.

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. All other components of CityCenter remain on schedule for a December 2009 grand opening.

"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."

CityCenter is an unprecedented urban metropolis that will open on 67 acres between Bellagio and Monte Carlo resorts on the Las Vegas Strip. It 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.

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.

"The construction progress to date on this enormous project is nothing short of incredible," said 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." (E-01.07.09)

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