I don't see how this Perini is going to win vs. the MGM in the City Center Billing

I don't see how this Perini is going to win vs. the MGM in the City Center Billing To summarize: Perini wants 500 million it says is owed to it, 400mm of which is for contractors 'many of whom are minoriy and women owned'. GIVE ME A BREAK. So Perini has been paid 6 million and is only owed 100mm? Yet despite being paid 6mm, of the 500 million they allege to sill be owed, 80% of it is to their subcontractors??? I'm sure they have the legal right to not pay them til they are paid, but looks like Perini got paid almost in full already DESPITE: The clear fact that the dwarf Harmon is 26 stories, may not open for years, and was to be 47 stories but this is now impossible due to the total botching Perini's subcontractors pulled not reinforcing the steel properly. In term of 'rough justice' this is clearly IMO OVER a 500mm mistake, as it wil label the City Center forever as a mismanaged Albatross, and as the gate way to City Center the Harmon has been a main vehicle in the destuction of the value of City Center. Now Perini says they could have fixed the Harmon, and if they can show us they could have done so and built 47 stories, then I stand corrected, but 'fixing' it to stand ok and not have stuctural problmes at 26 floor dwarfism is NOT sufficient. If someone builds a HUGE project and is totally incompetent in a key area, I just cannot see how in the world they are going to get paid in full. A 500mm looks like a cheap price to me for them to pay given the severity of the mistake. AND VERY hard for me to believe the other work was good given this horrific mistake was there. Ps. On an related note, why does no one queston if The Engineers in La may not be up to snuff AFTER 1. A major hurricane dodges New Orleans yet STILL wipes out the CIty's Levee(s) AND 2. The recent Oil Drilling disaster. Am I jaded to think the two above problems wouldn't happen to a city with its Act together like Minneapolis?

[QUOTE=Fezzik;21956]To summarize: Perini wants 500 million it says is owed to it, 400mm of which is for contractors 'many of whom are minoriy and women owned'. GIVE ME A BREAK. So Perini has been paid 6 million and is only owed 100mm? Yet despite being paid 6mm, of the 500 million they allege to sill be owed, 80% of it is to their subcontractors??? I'm sure they have the legal right to not pay them til they are paid, but looks like Perini got paid almost in full already DESPITE: The clear fact that the dwarf Harmon is 26 stories, may not open for years, and was to be 47 stories but this is now impossible due to the total botching Perini's subcontractors pulled not reinforcing the steel properly. In term of 'rough justice' this is clearly IMO OVER a 500mm mistake, as it wil label the City Center forever as a mismanaged Albatross, and as the gate way to City Center the Harmon has been a main vehicle in the destuction of the value of City Center. Now Perini says they could have fixed the Harmon, and if they can show us they could have done so and built 47 stories, then I stand corrected, but 'fixing' it to stand ok and not have stuctural problmes at 26 floor dwarfism is NOT sufficient. If someone builds a HUGE project and is totally incompetent in a key area, I just cannot see how in the world they are going to get paid in full. A 500mm looks like a cheap price to me for them to pay given the severity of the mistake. AND VERY hard for me to believe the other work was good given this horrific mistake was there. Ps. On an related note, why does no one queston if The Engineers in La may not be up to snuff AFTER 1. A major hurricane dodges New Orleans yet STILL wipes out the CIty's Levee(s) AND 2. The recent Oil Drilling disaster. Am I jaded to think the two above problems wouldn't happen to a city with its Act together like Minneapolis?[/QUOTE] I'm not versed on Vegas law but I'd point out a few things about construction. The casino should have completed operation insurance from the contractor. Withholding payment is almost always a loser in court. The sub contractors can sue the owner directly to get paid unless they provided waivers of lein. I've never signed one without being paid first. You'd be surprised at the rights contractors actually have in court. My understanding is based on a different state and at much lower dollar amounts. If you don't allow them to substantially complete the work contracted, you will almost always lose in court. I obviously don't have any understanding of the facts of this situation so I'm guessing mostly.

There are over ten seperate building contracts at city center, mgm is refusing to pay retention owed to perini and its subcontractors. There holding the flawed Harmon tower as a excuse not to pay Perini. They cannot do this, retention has to be released on all other jobs as they have been completed on time and with no oustanding issuses. Taking on a package of jobs valued at over 9 billion with a B billion you have to have the very best in the business that is why Perini was hired and they had numerous design changes litterally thousands of change orders and not only completed them but completed them with no additional time added to original sceduled opening nobody else could have done it. MGM opened and was making money from day one and now there flipping the bird to alot of people and let me tell you if they don't pay there is going to be a campain against mgm like you never seen before, your going to have every union member in every trade picketing there property, there will not be a person living in vegas take sides with a corporation that has no integrity what so ever, they have dodged and tried to bury Perini with paper work hoping they will settle for less. Perini is INTEGRITY they have a paper trail for every change order there was. I f you have mgm stock you better sell they will be found liable and it looks like they have two choices, first they will have to find a outside investor to come in and pay the judgemnt for a percentage of company or second city center will be forclosed on and they have to much invested to let that happen. My friend it is not Perini it is mgm. We have held back from any pickets and commercial adds to give mgm proper time to respond. I hope they do the right thing and pay the money there responseable for. Mgm counted on the sells of there condo's and last count they had sold seven in one tower and twenty four in another. They are in debt way over there heads.

How have Jim Murren and Bobby Baldwin managed to stay employed through this mess? MGM had to sell off Treasure Island in a fire sale just to keep CityCenter (and the company) afloat. CityCenter has been an absolute disaster, and it has not gotten any better since the property has opened. By itself, Aria lost almost $750k a day in Q1. As it turns out, making the casino as inaccessible to customers as possible may not the best strategy for casino design. It's hard to see how this property can ever be profitable, let alone earn a decent return on the $9 billion it cost to build. Fez's CitySpender moniker is very apropos. Here are some gems from the MGM Mirage Q1 earnings release: [QUOTE]Aria, the centerpiece casino resort at CityCenter, reported net revenue of $160 million and an operating loss of $66 million, which included depreciation expense of $54 million. Hotel occupancy percentage was 63% with an average daily rate of $194... Operating loss for the first quarter of 2010 was $11 million (which included the Company’s $86 million share of the CityCenter residential impairment charge) compared to operating income of $355 million in the 2009 quarter. In addition, the prior year results included a $190 million pre-tax gain on the TI sale... The Company reported a loss from unconsolidated affiliates of $81 million versus income of $16 million in the prior year first quarter. The loss in the first quarter of 2010 was attributable to the company’s 50% share of the operating loss at CityCenter... CityCenter reported net revenues of $260 million and an operating loss of $255 million in the first quarter of 2010, which includes an approximately $171 million non-cash impairment charge related to its residential inventory, depreciation expense of $69 million, and preopening expenses of $6 million. CityCenter results benefited from revenues of $24 million related to forfeited residential deposits... Operating income(loss) [U]Three Months Ended March 31, 2010[/U] Bellagio $37,564 MGM Grand Las Vegas 18,383 New York-New York 11,013 The Mirage 9,819 Excalibur 8,238 Mandalay Bay 1,867 Luxor 1,437 Monte Carlo 456 Circus Circus Las Vegas (3,646) CityCenter (50%) (122,105) [/QUOTE] The 50% next to CityCenter is there because MGM only owns half of the property. CityCenter actually had operating a huge operating loss of $244 million, but the other half of the loss belongs to MGM's joint venture partner, Dubai World.

[QUOTE]Am I jaded to think the two above problems wouldn't happen to a city with its Act together like Minneapolis?[/QUOTE] [url]https://www.nytimes.com/2008/01/15/washington/15bridge.html[/url] I think the New Orleans levee was done at the federal level through the U.S. Army Corps of Engineers.

I agree 100% that MGM has blown it on, but the Harmon construction is mind boggling There are (were) three key buildings at City Center 1. Aria (most importtant) 2. Crystals and the Harmon Ok, MGM surely has to pay for all the other contstuction, AND upon further review I AGREE this is going to play out badly for them legally. But IMO the Harmon IS a total loss based on constuction that is mind boggling shoddy bad. I guess these things happen when everyone is rushed, but I am SHOCKED that such an egregious mistake could slip by for so long, and I find it VERY hard to believe that the constuction subcontracting companies didn't know it was flawed and just covered it up, but then were caught. We will see how it plays out. I will take your word for it that Perini is 'quality' but clearly the quality was severely compromised based on MGM demanding time deadlines that in retrospect were unreastic and maybe even unsafe. We will see. Maybe the Harmon is worth 1/3 of what it would have been worth, BUT it also will singe handily hammer the value of the other 6-7 buildings down by up to 1 billion IMO. Not just because it visually doesn't work, BUT also everyone in City Center walking through will say "That's the dwarf Harmon, THEY BLEW IT and built is ALL WRONG". Do people disagree with this? Ps. I gave the Gophers too much credit.......maybe Decker was out. The funny thing is that after I posted this, I remembered the bridge. It ties into my theory that one can evaluate a city based solely on its airport. LAX, Miami, Newark, you get the idea.......vs. Minneapolis or Denver or Salt Lake City.

Harmon tower is a big problem for Perini, last I heard mgm had a estimated cost attached to the harmon tower of over four hundred million to fix and finish the tower, Perini had there own cost estimate which was two hundred twenty million, so they are miles apart and will no doubt be litigated. Perini is prepared to own up to the mistake made by steel engineer it's steel subcontractor and pay a price but feel mgm is over inflating the cost. Every other project has gotten it's TCO therefor all retention is due payable. I feel like a chump because I defended city center and MGM last year on a thread and now they have almost put me under.

We all agree the non Harmon subcontractors should get paid If Harmon was a stand-alone, then 220 million might be 'right', but the implied odds of the vicious hit it will give to the other properties is HUGE.

Do you guys think this is already built in to the stock price?? And if not is it material??

one thing I got to tell ya about I got to ride the window washers swing stage over the top of the VEER tower one morning and it was great, it was still a little dark so the lights of the strip were shining bright, there was very little noise as the construction buzz hadn't started yet and there was just enouph wind that the rig would blow out a few feet and back in when it does that your adrenaline is sky high I will never ever forget that morning it was a one of a kind.