Las Vegas-based MGM MIRAGE announced today that it is providing $200 million of funding to CityCenter--the massive development including lodging, gaming, residences, retail and entertainment slated to open later this year--to satisfy the required sponsor equity contributions due on or about March 24, 2009. The funding includes $100 million that should have been funded by project partner Dubai World, MGM management said. This allows construction to continue while MGM MIRAGE seeks additional funding for CityCenter.
MGM MIRAGE intends to work with Dubai World, its lenders and others to find a long-term solution for the financing of CityCenter's completion, the company said. With today's funding, the remaining combined equity contributions necessary to access the CityCenter credit facility are approximately $800 million.
'VITAL' DEVELOPMENT, MGM SAYS
"MGM MIRAGE believes that CityCenter is of vital importance to Las Vegas and the state of Nevada," said Jim Murren, Chairman and CEO of MGM MIRAGE. "We are doing our utmost to see that this project continues, keeping thousands of Nevadans employed. We will continue to make every effort to see that CityCenter is completed and becomes an even greater economic driver for the region. We appreciate the support of our senior lenders and the CityCenter lending group. We continue to review with our partners all possible options to keep CityCenter fully funded and on a path to completion."
MGM management describes CityCenter as "a dazzling vertical city located on 67 acres between Bellagio and Monte Carlo resort." At the center of the development will be the ARIA Resort & Casino/ Designed by marquee architects Pelli Clarke Pelli, the 61-story, 4,004-room resort will feature approximately 300,000 square feet of "technologically advanced" meeting and convention space. The property is now accepting reservations for meetings and special events for 2010 and beyond.