The partnership last month said ithad $5 billion left to spend toward completion of the19-million-square-foot development, of which $3 billion was to befinanced and $2 billion was to be covered by additional equitycontributions by MGM and Dubai World. Of the $3 billion infinancing, MGM Mirage said it had secured $1.8 million in financingand had commitments for an additional $500 million, leaving a$700-million shortfall, which it has been seeking to make upthrough a syndication process that began in October. MGM's$600-million commitment in addition to the $959 million in largepart ensures the project will be completed if the $700-millioncannot be financed.


Rising on 67 acres between the Bellagio and Monte Carlo resorts,the massive endeavor has been under construction since 2006 and isscheduled to open all at once in late 2009. All told, thedevelopment includes more than 7,400 hotel and condominium units inmultiple high-rise towers plus the Crystals, a 500,000-square-footretail and entertainment district, a resident Cirque du Soleil showcelebrating the legacy of Elvis Presley and its own monorail tomove people between MGM's three neighboring resorts.


The actual gross cost of Citycenter is $11.2 billion. In itsfirst quarter report, MGM Mirage pegged the net project budget at$8.5 million--after an expected $2.7 billion in residential sales,of which about 65% has been realized. The gross project budgetincludes $9.2 billion for construction costs (now $9.3 billionincluding capitalized interest), $1.7 billion for the land, $200million for pre-opening expenses and $100 million of "intangibleassets." As of August, approximately 54% or 1,421 of the 2,700condominiums have been sold for $1.75 billion.

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