Harmon Tower demolition hearing set for March

MGM Resorts International’s plan to implode the Harmon tower at CityCenter faces unusual obstacles. The tower, discovered to have building errors, is at the center of litigation between MGM and the project’s general contractor.

The Harmon Tower at CityCenter will continue to sit empty and unused well into 2012 after a judge indicated Wednesday she may decide in March if it can be imploded.

CityCenter, the Strip casino-resort complex half-owned and managed by MGM Resorts International, has been pressing to demolish the $279 million, 26-story Harmon hotel building because of pervasive construction defects and concerns the building is a public safety risk because of suggestions it would collapse in a significant earthquake.

General contractor Perini Building Co. and several subcontractors are fighting the demolition plan, saying the structure can be repaired and CityCenter is just trying to get rid of a building it can’t use in the current economic climate.

Clark County District Court Judge Elizabeth Gonzalez on Wednesday scheduled three days of hearings beginning March 12 on the demolition request.

Gonzalez is presiding over a massive lawsuit pitting CityCenter, Perini and subcontractors against each other in disputes over the construction defects and construction payments that have not been made to Perini and certain of the subcontractors.

The demolition plan has been on the table since Aug. 15, but Gonzalez on Wednesday said attorneys for both sides need more time to take the depositions of witnesses and collect more evidence before they argue the demolition motion before her.

“It’s a very serious motion,” Gonzalez said during a Wednesday hearing on various issues in the lawsuit, adding that CityCenter has the burden of proof to show demolition is the best way to deal with the Harmon.

Even if Gonzalez approves the demolition in March, it may take several months after that for the demolition to occur as governmental approvals would be needed and Perini or other contractors could appeal.

Assuming the building comes down, issues ranging from CityCenter’s damages for lost business opportunities to Perini’s claim it was prevented from repairing the Harmon will still be at issue and are scheduled to be litigated during a trial set for early 2013.

Business

Share