The still unopened Harmon Hotel, a 27-story centerpiece of the now financially hemorrhaging CityCenter development in Las Vegas, is being targeted for demolition. MGM Resorts International, owner of the troubled 67-acre complex that includes the hotel designed by U.K. “starchitect” Sir Norman Foster, recently unveiled plans to raze it. MGM took a $279-million write-down in the third quarter on the building, which sits dormant with a sign wrapped around its gleaming glass façade for the resort’s “Viva Elvis” show. Harmon may be the world’s most expensive billboard.
Part of Harmon’s problems stem from an ongoing bitter lawsuit between MGM and its general contractor Perini Building Co. over construction defects, among other things. Harmon has "substantial defective construction" resulting in "hundreds of millions of dollars in estimated damages," MGM’s lawsuit claims. Harmon’s problems are fixable, says Perini President and CEO Craig Shaw, who calls the lawsuit a smokescreen to avoid paying the final construction tab.