Las Vegas’s struggling economy will be given a significant boost this coming Monday when about 12,000 people will appointed to jobs at CityCenter, the sprawling US$8.5B resort development seen as crucial to the resurgence of the World’s Casino Capital. MGM Mirage, the owner of Las Vegas casinos: Bellagio and MGM Grand, has spent 4 years developing the 18Msq ft CityCenter, the largest commercial real estate project in the USA The future of the development, which includes upmarket hotels, a casino, shopping center and concert arena, fell into question this year when MGM Mirage was unable to access cash from the frozen credit markets. However, the company did secured several debt waivers and has since completed a US$2.5B refinancing, securing the funds needed to complete the development and open it as planned in December 2009.The group also issued new shares, which diluted the stake held by Kirk Kerkorian, its largest shareholder, from 52% to 37%. Jim Murren, chief executive of MGM Mirage, said that CityCenter would be a shot in the arm for Las Vegas, which was badly hit by the recent downturn. “CityCenter is going to be vital to the ability of Las Vegas to recover from this recession,” he said. “Not only because it represents a project that has survived but because people are going to come from all over the world to see it.”The 12,000 available positions at CityCenter have attracted more than 160,000 applications. “This concentration of new jobs is not happening anywhere else in the US,” said Mr Murren. “To have it happen in Las Vegas will have a profound effect.” While MGM Mirage prepares for the grand opening of CityCenter in December, other casino companies have been less fortunate with their projects.
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