MGM Mirage Suffers A Setback Due To Katrina
Hurricane Katrina’s effect was devastating on the MGM Mirage. The company had to shut down its Beau Rivage Casino in Biloxi, Mississippi for the whole of September. The company suffered a major setback in its third quarter net income and share prices. MGM mirage experienced a 26.5% decrease in its net income compared to the previous year, while its share dropped from 45 cents to 31 cents.
Last year MGM Mirage’s net income was $126.8 million while this year it is $93.2 million. The Wall Street saw more than 6.6 million shares being traded on a single day and finally the MGM Mirage closed at $37.75, down $5.96. Other Las Vegas casino operators have also suffered loss due to the damages caused by the hurricane leading the shares to come down. Harrah’s Entertainment went down by 4.99%, Boyd Gaming Corp. by $.03% and Pinnacle Entertainment by 2.22%. Beau Rivage will be closed for another 12 to 16 months as the hurricane has destroyed most of its restaurant, casinos and retail areas.
Summerlin - Lots Of Development Still Left
The development of southern Nevada’s most visible master plan, Summerlin began in 1990. It remained the sales leader till 2003, but now it is behind the villages of Florida at number two. In spite of the development slowing down, Summerlin has nearly 7000-acres of undeveloped land. Some of the upcoming projects on these lands are the – 1 million square feet regional outdoor shopping center and 14,000 homes mega village. Urban residential living has a strong market and Summerlin has years of development ahead of it. Land prices are soaring high and to maximize the value of land, best floor plan utilizing minimum land and water resources has to be made. In summerlin the 37,000 homes in the 19 villages are already completed. West of summerlin Parkway and the Las Vegas Beltway is the 2,000-acre community called the Altura. This community will have 14,000 homes. Urban village and high density commercial and residential developments are planned for Altura along the beltway, while low density single family homes will be developed along the west side.
Beltway Business Park
Clarke county Aviation Department has granted a 50-year land lease to Thomas & Mack and Majestic Reality for the development of the Beltway Business Park. The 400-acre Beltway Business Park is located in southwest Las Vegas valley. GES Exposition Services, 850,000 square foot headquarters was the first major development at the business park. The Corporate Gateway will have four, three-story building and retail, for the employees who will work at the Beltway Business Park.
First of the three-story building, a 73,000 square foot office building is already completed. The construction cost is estimated at $4.75 million. Rest of the two buildings of 252,000 and 288,000 square foot area will be completed by July or August. Construction of three buildings with area of 850,000 square feet will begin next year. Joint venture of these two developers is bringing about the development of 100-acre business park in North Las Vegas, near the Las Vegas Beltway and the interchange of I-15.
