MGM (MGM) Seeks to Demolish Unstable City Center Tower
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MGM Resorts (NYSE: MGM) createth, and MGM Resorts taketh away.
According to recent reports, MGM is looking to demolish part of its new City Center complex. Finished just two years ago, MGM is now saying engineering and construction problems have left the Harmon Building vulnerable to collapse in the event of a serious earthquake.
As a result, MGM now says it shouldn't have to pay $200 million to general contractor Perini Building Co., of Tutor Perini (NYSE: TPC). Perini says the construction was fine, but it was the design which was incomplete. MGM will not be allowed to alter or demolish the building until settlement of the legal dispute.
Beside demolition, MGM says another alternative is to conduct tests for 18 months, then spend several years making the repairs.
The Harmon was designed by architect Norman Foster. City Center is a joint venture between MGM Resorts and Dubai World.
MGM shares are 2.6 percent lower on the session.
According to recent reports, MGM is looking to demolish part of its new City Center complex. Finished just two years ago, MGM is now saying engineering and construction problems have left the Harmon Building vulnerable to collapse in the event of a serious earthquake.
As a result, MGM now says it shouldn't have to pay $200 million to general contractor Perini Building Co., of Tutor Perini (NYSE: TPC). Perini says the construction was fine, but it was the design which was incomplete. MGM will not be allowed to alter or demolish the building until settlement of the legal dispute.
Beside demolition, MGM says another alternative is to conduct tests for 18 months, then spend several years making the repairs.
The Harmon was designed by architect Norman Foster. City Center is a joint venture between MGM Resorts and Dubai World.
MGM shares are 2.6 percent lower on the session.
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