Funny you should ask. Clark County District Court resumed hearings this week on whether or not MGM Resorts International can implode the Harmon before or after related issues (like $186 million in contractor payments) have been litigated. Companies that worked on the hotel – and stand to be considerably out of pocket if MGM wins at trial – fear that by tearing the building down, MGM will subconsciously convince prospective jurors that it was indeed defective. Attorneys started arguing the issue in March and have just resumed battle after a four-month recess.
One thing is certain: Regardless of who wins next summer’s trial, the Harmon is coming down. It’s no longer a question of if but when. Perini Building Co., lead contractor on CityCenter, is fighting to salvage some money and a lot of reputation, especially after Clark County declared the Harmon a safety hazard. Perini says the building, whose height was shaven from 47 stories to 26, can be fixed, but MGM doesn’t want to hear it. They want to get on with demolition and soon. Although the building will be imploded, a mere matter of seconds, the entire process of prepping and subsequently clearing the site could take as many as 11 months.
From MGM’s point of view, at least one aspect of the Harmon is totally irreparable – its public image. After the vast amount of news coverage of the construction fiasco (a $279 million writeoff) and frequent public disparagement of the building – much of it by MGM executives, it should be noted – customers are wont to be leery of staying in a building that the county says would be prone to collapse in a fire or earthquake.
MGM is fighting a two-front war. A class-action lawsuit by a group of MGM shareholders seeks $4.6 million in damages. The plaintiffs argue that the company knew of – and kept mum about – the defects for as long as 10 months prior to disclosure. Their contention is that MGM stock lost $15/share in value due to the company’s alleged lack of candor.
If MGM gets the demolition permit it seeks, which was OK'd by the judge yesterday, but will almost certainly be appealed by Perini, it would be ironic if they were able to detonate the Harmon by mid-December: That would mark the three-year anniversary of the opening of CityCenter.
