MGM Resorts International sought approval on Monday from county authorities to demolish the troubled Harmon hotel tower.
Construction of The Harmon, part of the US$9 billion CityCenter entertainment and lodging complex co-owned by MGM Resorts and Dubai World that is located on the Las Vegas Strip, started in 2007 but was stalled in 2008 by design defects, which MGM Resorts and construction company Perini Building Co. are harshly blaming on each other. County officials had given MGM Resorts Aug. 15 as a deadline to submit a plan for the building project to move forward.
The two companies are involved in litigation on the project, and a judge has ordered that no action be taken on the building until the case is resolved. If approved by the county, MGM Resorts said it will then petition the judge to lift the standing order.
“CityCenter consulted with experts about the fastest and safest way to resolve public safety concerns created by the structural defect issues at the Harmon’’ said Gordon Absher, vice president of public affairs for MGM Resorts. “Based on their expert advice, CityCenter is recommending that the structure be demolished by implosion.”
Perini Building Co. issued a press release on Monday with scathing criticism of the move.
“The truth is, however, that MGM does not want the Harmon to be repaired because the Harmon is worth more dead than alive to MGM. Otherwise, MGM would allow Perini to repair it. MGM never intended to complete the Harmon after the economic downturn; MGM cannot fill the Aria and Vdara hotel rooms or sell the Veer and Mandarin Oriental condo units that it has now. Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” Perini Building Co. wrote.