CityCenter developers get Aug.

15 deadline on Harmon tower

BY HOWARD STUTZ LAS VEGAS REVIEW-JOURNAL

Posted: Jul. 12, 2011 | 3:59 p.m. Updated: Jul. 13, 2011 | 7:26 a.m.

http://www.lvrj.com/business/general-contractor-blames-design-defects-for-unfinishedharmon-125452958.html Clark County's Building Division gave CityCenter developers until Aug. 15 to devise a strategy for either repairing or demolishing the unfinished Harmon tower after a structural engineer said the 27-story building could collapse in a strong earthquake. In a letter Tuesday to CityCenter executive William Ham, Clark County Building Official Ron Lynn said the development, owned by MGM Resorts International and Dubai World, is required to "provide a plan of action that will abate the potential for structural collapse and protect" neighboring buildings and businesses along the Strip. Lynn specifically cited the Crystals shopping center, its high-end retail stores and the pedestrian overpasses across the Strip and Harmon Avenue as areas that could be damaged if the Harmon were to collapse. The county's request comes a day after structural engineering firm Weidlinger Associates of Marina Del Rey, Calif., said the Harmon was unrepairable. Conceived as a 47-story luxury hotel and condominium tower and designed by famed British architect Lord Norman Foster, the Harmon was scaled back in size and scope and

eventually mothballed after building inspectors discovered structural construction defects in 2008. Lynn asked CityCenter to provide the county with substantiating tests, documents, calculations and supporting information used by Weidlinger Associates, which was hired by MGM Resorts to conduct a structural analysis of the Harmon. MGM PROMISES TO COMPLY In April, Clark County had asked CityCenter to conduct the third party analysis after building division consultant Walter P. Moore Structural Engineers concluded the Harmon "suffered from certain vulnerabilities." Lynn told CityCenter officials the Weidlinger report indicates "a high likelihood of catastrophic failure" of the Harmon. "Prior to remediation work or demolition, all required permits and inspections must be obtained," Lynn said. MGM Resorts spokesman Gordon Absher said the company will comply with the county's requests. In reacting to the Weidlinger Associates report Tuesday, CityCenter's general contractor blamed "design defects" for the problems; said the building is not unsafe; and maintained that it can be repaired. BUILDER CALLS PROBLEMS DESIGN DEFECTS In a written statement, Perini Building Co., which is mired in a lawsuit with CityCenter developer MGM Resorts over nonpayment and construction defects involving the $8.5 billion project, said the casino operator "does not want the Harmon to be repaired because the Harmon is worth more dead than alive to MGM." Perini's statement, which was emailed from the company's Phoenix offices, said "vulnerabilities" cited by Moore were "design defects that are the responsibility of MGM." The Moore report, which relied on "information that was obtained from the available design documents, noncompliance reports and limited visual observations," stated its "analytical findings suggest that the as-designed Harmon tower structure is structurally stable under design loads from a maximum considered earthquake (MCE) event." In its statement, Perini disputed Weidlinger Associate's assessment that the building can't be repaired. The company said its own third-party structural engineering experts "have determined that the Harmon was defectively designed, but is currently stable and all design and construction defects can be repaired." Perini said its structural engineering expert, which it declined to name, has a tentative repair plan.

In an emailed response, MGM's Absher said Perini was "attempting to deflect attention from what it already has admitted: As general contractor, it failed to properly construct the Harmon. No amount of misdirection can change that fact." INCONSISTENCIES DISCOVERED IN 2008 Absher said the Moore and Weidlinger reports used different methods to study the Harmon. Moore said the building was stable "as designed," but never offered an opinion about its status "as built." Weidlinger studied the building as it now sits. "Perini's representation of the facts is as poor as its construction at the Harmon," Absher said. In 2008, building inspectors found structural work on the Harmon did not match plans submitted to Clark County. The construction issues involved improperly placed steel reinforcing bar, commonly known as rebar. In January 2009, MGM Resorts scrapped the planned 200 condominium units for the upper floors and capped the tower at 27 stories with 400 hotel rooms. Company officials said at the time they would delay a decision on the tower's future until 2010. CityCenter opened in December 2009. The Harmon's construction defect issues became the focal point of the lawsuit between MGM Resorts and Perini filed last year in Clark County District Court. The litigation is on hold pending a Nevada Supreme Court ruling on technicalities with the case. The Harmon was to be run as a nongaming hotel by The Light Group, a restaurant and nightclub operator. The Harmon would also feature MR CHOW, a branch of the popular Los Angeles restaurant owned by Michael Chow. But with the building the focus of litigation, construction was halted on the interior. The outside of the building is blue glass on what is essentially an empty shell. Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.