New Las Vegas megaresort City Center, which we reviewed in January (it features buildings by Daniel Libeskind, Cesar Pelli, Rafael Viñoly, Helmut Jahn, and others) just reported its first quarter results. They weren’t good. The’s $8.5 billion project, owned by MGM Mirage and Dubai World (which has finally worked out a debt restructuring deal with its creditors), recorded an operating loss of $255 million, and has only been able to sell about 100 of its 2,400 luxury condominiums, according to the Wall Street Journal. MGM is also locked in a lawsuit with its contractor, Perini Building Co, for defective workmanship and overbilling. For what it’s worth the company claims that it will soon begin to turn a profit on the project. Now that’s a Vegas bet we’re interested in following.
Yesterday, we reported on the continued improvement of the AIA Billings Index, which has shown its best performance in two years. While things have not totally recovered yet, there is more to this story than just number. We’ve been hearing stories, too, of those so-called green shoots popping up here and there. Take for example a recent tweet by Gensler heralding the 63 spots that the firm is trying to fill across the globe. The simple missive—”Sign of the times: we’re hiring for 63 positions!”—ricocheted around Twitter, a sign of hope and promise among those wired architects. Clearly, this is the kind of good news people are looking for, so we want to hear more. Please leave your stories in the comment section below or send them to editor[at]archpaper.com. We’ll try and highlight them in a few days.
For the forth month straight, billings for firms in the Midwest are showing the strongest uptick of the four regions tracked by the AIA. And for the first time since the recession, in March billings in the Midwest have moved into positive territory, breaking the 50 mark, making it the first region to do so since the recession began. (Anything below means billings for work are falling, above rising.) In the graph above, the Midwest region is represented in red, the East in blue, the West in green, and the South in orange. According to the numbers, the recovery has arrived. Read More
The Rose Kennedy Greenway was supposed to transform downtown Boston, and while the Big Dig has had some impact on traffic, its above ground success have been far fewer, at least in the three years since the project was completed. At least two major developments have been forestalled because of competing demands on the Greenway’s open space, which itself has not been a smashing success, and now the Boston Globe reports the demise of yet another cultural institution that had been planned for the 1.5-mile park. The latest loss is the New Center for Arts and Culture, an $80 million project designed by Daniel Libeskind that was meant to foster diversity and dialogue between disparate groups. Other of the glassy, glitzy victims—blame falls largely on poor fundraising due to the economy—include a new YMCA, Garden Under Glass, and the Boston Museum, which has since relocated to a different site where it also struggles to get off the ground. After the jump, a graphic from the Globe breaks the blunders down. Read More
According to Crain’s Chicago Business, major construction unions will not be loaning funds to restart the Chicago Spire, as many had speculated. The union pension funds are feeling cautious, much like other lenders, so the Spire, which was always an ambitious project, remains a high risk bet. Who will the developers turn to next?
First reported in the Chicago Tribune, and today in the Wall Street Journal, officials at a group of union pension funds are vetting a plan to lend $170 million to restart construction on the stalled Chicago Spire. Designed by Santiago Calatrava, the 150 story residential tower would be the tallest building in the US. The Journal piece points out that with a drastic drop off in condo construction downtown predicted for 2010 and 2011, the completion of the Spire could actually come at a time when there is pent up demand for housing. Blair Kamin previously pointed out that unions have made similar loans in previous downturns, notably providing loans for the construction of Marina City.
According to the Journal, Chicago’s failure to win the 2016 Olympics may have been the key to giving the Spire new life. The pensions had previously been looking to lend funds for the construction of the planned Olympic Village.