MGM Mirage halts $5 billion Atlantic City project
by Judy DeHaven/The Star-Ledger
Wednesday October 29, 2008, 11:16 AM
The credit crunch has claimed another victim: MGM Mirage's plans for a $5 billion mega-resort in Atlantic City.
AP Photo/MGM Mirage Inc.A rendering of the MGM Grand project in Atlantic City.
MGM today said it is halting the project, which would have risen on land next to the Borgata, the glitzy casino the company operates jointly with Boyd Gaming. The announcement came on the same day MGM Mirage reported a 67 percent plunge in third-quarter earnings, largely because of sluggish revenue from its properties on the Las Vegas strip.
"We continue to believe Atlantic City represents an important market for further development," Terry Lanni, MGM's chairman and CEO, said in a statement. "We intend to resume development at such time as economic conditions and capital markets are sufficiently improved to enable us to go forward on a reasonable basis."