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THE STRIP AFTER HARMON IS IMPLODED, WHAT WILL TAKE ITS PLACE? By Steve Green senior staff writer T he ruling this month that potentially speeds up demolition of the $275 million Harmon hotel has casino industry ob- servers wondering what CityCenter will develop in the tower's place. MGM Resorts International, half-own- er and manager of the $8.5 billion re- sort complex that includes the Harmon, hasn't offered any clues on what might be developed once the tower is removed. But there are no shortage of theories and ideas about what makes sense for the prime real estate on the Strip. The two concepts most bandied about so far involve either another hotel-con- dominium project or an entertainment complex that could include restaurants and bars and be designed to draw pedes- trian traffic deeper into CityCenter and its flagship Aria. "MGM Resorts will likely view the site as prime real estate," Union Gaming Group analyst Bill Lerner said. "If one looks at the strength of food and bever- age at the Cosmopolitan next door, it is a great proxy for the value of new develop- ment there." Whatever is built likely will produce cash flow for CityCenter, which would be a welcome change. The Harmon gener- ates no revenue as it sits unused because of construction defects. But one big factor complicates analy- sis of future uses for the property. Some- thing that doesn't make sense in today's AREA CODES ADDITIONAL AREA CODE BEING CONSIDERED FOR LAS VEGAS By Ron Sylvester staff writer L dustry that could be ready for final ap- proval by the end of the year, PUC spokes- as Vegas could be getting a new area code, although it probably won't come man Peter Kostes said. It would include public feedback sessions in the fall. According to a report filed in April by a group that tracks area code use, the numbers available in the 702 area code, established 65 years ago, will run out by the second quarter of 2014 based on current demand. That's almost a year sooner than cited in 2011 by the Num- bers Utilization Resource Forecast. up all 7s as some have proposed. The Public Utilities Commission of Nevada on July 18 approved a measure that would allow officials to pursue a new area code by the summer of 2014 as demand for numbers in the current 702 exchange fills up. The commission voted to develop a plan from the telecommunications in- 6 New customers would get numbers in the new area code. Existing customers would keep their 702 area code. All val- ley residents would have to dial 10-digit phone numbers that include area code on local calls. It would take 16 months to implement the new plan upon final approval by the commission. The 702 area code serves Las Vegas and Southern Nevada. About three new numbers a month are issued, with about 90 percent of them in Las Vegas. It's unlikely new area code would be 777, a pitch Las Vegas tried in 1997. That area code is reserved by the telecommu- nications industry as an easily remem- bered number that could be used for public services, such as 555 for direc- tory assistance or 911 for emergencies. The 702 area code first came into be- ing in 1947 and spanned the state. As the population grew in Las Vegas, Northern Nevada was split off into the 775 area code. That happened in 1998. | 30 JULY 2012 | tors litigating with CityCenter plan to appeal the decision that green-lights de- molition. The ruling came in a lawsuit filed in 2010 over defects in the Harmon and unpaid construction bills. The case is headed toward a 2013 trial. Because of expected appeals, prepa- ration of the 26-story tower for demoli- tion won't begin until the legal fight is resolved and demolition permits are is- sued. Once the prep work begins, it will take an estimated six months to ready the building for implosion and several more months of cleanup after the event, MGM Resorts spokesman Gordon Ab- sher said. Some of that preparation work involves removing the Harmon's exten- sive glass skin. FAULTY TOWER: CityCenter's Harmon was cut short by construction defects, and will be imploded. environment may end up being lucrative once the economy turns around. For instance, it wouldn't make sense today to build another hotel-condo tow- er given the struggles CityCenter has had selling its existing condos. And while hotel occupancy rates in Las Vegas have been improving, they're running well be- low the levels of the boom years. "The last thing they need right now is more rooms," said David Schwartz, director of the Center for Gaming Re- search at UNLV. "But by 2014, we may be in a substantially different market." Given its high-profile location, the STEVE MARCUS That leads some casino industry ob- servers to think an implosion won't oc- cur until late 2013 or 2014. Harmon land is well suited for develop- ment into something that would pull in passers-by, he said. It remains to be seen whether whatev- er is developed will be geared toward a higher-spending visitor, like the adjacent Crystals mall in CityCenter, or to hipsters who prefer a boutique feel, like that of the neighboring Cosmopolitan. MGM Resorts has made it clear in recent months that demolition of the Harmon is a foregone conclusion. A rul- ing this month by Clark County District Court Judge Elizabeth Gonzalez could speed up the process, though contrac- In the meantime, the battle in District Court and potentially in Nevada Su- preme Court will continue. General contractor Perini Building Co. and subcontractors are expected to argue that they're owed $220 million to $240 million for work on the Harmon; that CityCenter design errors are respon- sible for many of the construction prob- lems; that the building is safe as it stands; that repairs to bring it up to code would cost about $20 million; that its demolition violates contractors' right to repair it; and that an implosion before trial would taint the pool of potential jurors.