CityCenter Needs $3.5 Billion, Can You Spare a Dime?

photos by flipchip • lasvegasvegas.com

The massive $11 billion plus CityCenter project under construction on the Las Vegas strip is scrambling to put together an additional $3.5 billion in financing to complete the project in instance for the advertised late 2009 opening. Apparently the economic woes consuming the US and World financial markets are taking a toll on the normally bullet proof Las Vegas economy.

Rising fuel cost combined with the break down of the real estate market has forced money lenders into a corner, even those lending institutions that once stood in line to buy into a glamorous Las Vegas gambling resort are treading water until the storm passes.

Even though Dubai World, the $100 billion in assets investments company owned by the emirate’s government, has invested $5.1 billion into the CityCenter project, additional funding will be essential to completed the city-within-a-city on the Las Vegas strip. According to an outside source fund raising leader, Bank of America Corp., has lined up $2 billion of the needed $3.5 billion.

Gaming revenues in Nevada have suffered a 17% drop from the same period last year as a aftereffect of consumer belt tightening, record fuel prices, shrinking airline traffic and home foreclosures. Duesche Bank has taken by the $3.5 billion Cosmopolitan project located north of CityCenter after its developer, Ian Bruce Eichner, defaulted on a $760 million loan.

Will Las Vegas finally have to pay the juice to the piper after years of blue skies and good times? It’s certainly beginning to look that way. Fact: Nevadans are carrying the highest per capita credit card debt load of any state in the nation, at least we’re number one in something.

[Source] Las Vegas News Blog