The components that will be suspended are the Earth Expansionand the adjacent parking garage. The complex consists of Casino ofthe Earth, Casino of the Sky, Casino of the Wind, Sunrise Square,the Shops at Mohegan Sun, along with a 10,000-seat arena, a350-seat cabaret theatre and 100,000 sf of meeting and conventionspace. There is also a 1,200-room Sky Hotel Tower. The ProjectHorizon project included costs spent on different parts of thecomplex with $17 million to Sunrise Square, $116 million for Casinoof the Wind, $58 million for Property Infrastructure and $75million has already been spent on Earth Expansion and $5 million onthe parking garage. By halting the expansion now, the project willsave $734 million.

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"Given increasing uncertainty in the regional and nationaleconomy, we have decided that the most prudent course of action forthe Authority at this time is to suspend work on the EarthExpansion," says Mitchell Grossinger Etess, president and CEO ofthe Authority, in a statement, "which will strengthen our balancesheet. We continue to believe in the long-term prospects of ourbusiness and the Northeast gaming market and expect to resumedevelopment at Mohegan Sun when market conditions improve over asustained period."

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There is some understanding that penalties may ensue, but thatthe decision is the right one for the time. "While we anticipateincurring some modest lease and contract termination expenses,"Etess continues in a statement, "the vast majority of theapproximately $80 million to be invested in the Earth Expansion andthe parking garage components of Project Horizon is for valuableimprovements to our existing site and facilities that will benefitour business in the future."

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The Mohegan Sun is situated on three million sf and is owned andoperated on a 507-acre reservation just outside Uncasville, CT. TheAuthority is putting the project on hold for 12 months.

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