March 19, 2010

Las Vegas CityCenter general contractor Perini Building suing MGM Mirage

LAS VEGAS

The primary general contractor for the $8.5 billion CityCenter project on the Las Vegas Strip plans to sue the project’s owners for $492 million.

Casino operator MGM Mirage, which owns the multi-tower site in a 50-50 partnership with Dubai World, disclosed the threatened mechanics’ lien in a filing to U.S. regulators March 12.

A spokeswoman for Perini Building, the Tutor Perini Corp unit which was the primary general contractor at CityCenter, said the company did not want to comment on the filing.

MGM, based in Las Vegas, said the actual lien may be filed within 15 days of the notice. A mechanics lien is a lien against buildings or other structures allowed by some states to contractors, laborers and suppliers of materials used in their construction or repair.

“CityCenter believes that its actual obligation to the general contractor is substantially less than the amount claimed and that it is also entitled to significant offsets against the claimed amount,” MGM said in its filing.

The company intends to pursue all of its rights and remedies, including arbitration. Meanwhile, the CityCenter joint venture has obtained a six-month amendment to its US$1.8 billion credit facility that would allow for additional construction liens.

MGM also said it believes it has significant claims against the contractor in connection with construction defects at CityCenter’s Harmon Hotel tower.

Associated Press

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