Las Vegas Sun

March 28, 2024

Gibbons to meet with builder over CityCenter

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Gov. Jim Gibbons

Gov. Jim Gibbons said Monday he plans to meet with the primary builder of the $8.5 billion CityCenter project to try to resolve a dispute with casino operator MGM Mirage over an unpaid bill for construction of the Las Vegas Strip complex.

Gibbons said Monday he's not sure whether the May 21 meeting will budge the two parties in the $492 million dispute between MGM Mirage and Perini Building Co.

"That's what our legal counsel is reviewing right now, to see whether or not the state does have any authority in this," Gibbons told The Associated Press. "I'm not sure we do -- I'm not sure there's anything we can do but we want to bring the parties together and resolve it."

Perini has filed a lien and a lawsuit against MGM Mirage in Clark County and wrote Gibbons last week to request the meeting. On Sunday, the contractor bought a two-page ad in the state's largest newspaper to publicly recount its complaint.

MGM Mirage executives have said the company owes less than what Perini claims, and it plans to respond to Perini in court.

MGM Mirage spokesman Alan Feldman said Monday that Perini gave its final bill to MGM Mirage last week and has ignored the casino company's claim for negligence at the Harmon Hotel. The Harmon tower had to be delayed and shortened because of problems with its reinforcing steel.

"These matters are before an impartial third-party and will be resolved in due course," Feldman said. "Any attempts by Perini to malign the reputation of MGM Mirage is simply a distraction and can only delay an expedient resolution of our differences."

Perini has called the Harmon issue a "smokescreen," an excuse for MGM Mirage not to pay.

Gibbons, who is running for re-election this year, said he hopes to bring Perini and MGM Mirage together to resolve the matter outside court.

It was not immediately clear whether MGM Mirage representatives would attend the meeting with Gibbons and about three of his staff members. Gibbons said it would be up to Perini to invite the casino company if it chooses.

Ron Tutor, chief executive of Perini's parent company, Tutor Perini Corp., said in a statement that MGM Mirage CEO Jim Murren and Chief Design and Construction Officer Bobby Baldwin were welcome to the meeting, but no other company respresentatives.

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