The $8.7 billion project, with its hotels, condominiums, casino and giant mall designed by Daniel Libeskind, is the largest privately funded construction project in the U.S. It was supposed to usher in a new era of sophistication and urban living in the gaming capital. But it almost collapsed before it opened, and because of its huge scale, its fortunes and those of Las Vegas are closely linked. Over the summer, executives of Dubai World and MGM Resorts International, which jointly own the project, studied and rejected closing two of the site's three hotels and the Viva Elvis Cirque du Soleil show, according to documents reviewed by The Wall Street Journal.
The documents show that the partners have also outlined a plan to seek relief on the terms of the complex's $1.8 billion loan, which requires the joint venture to earn far more cash than currently seems feasible. If they can't renegotiate the terms, City Center could be in default on the loan as early as mid-2011.