MGM MIRAGE HAS MADE A STRONG STATEMENT WITH THIS PLAN

Implications:  MGM MIARAGE has taken the lead in employee relations. They are getting ready to start a planned community for employees just a short thirty minute or less drive from the Las Vegas Strip. This will be a complete housing area with all types of retail to maintain the community, school access and affordable living. What a great innovation for a fast moving, dynamic company.

Analysis: In a very recent article I spoke about the importance of maintaining and building relationships with the general employment staff. The MGM Mirage is in the midst of creating one of the most expensive, unique and progressive destination resorts on the Las Vegas Strip. The Project City Center will set new standards for all projects in  Las Vegas and other major markets. Where will they get and house the thousands of new employees needed to maintain and man this new mega resort? They will reach out to all the other properties first and see how many employees will jump ship to work in their new City Center. Some will come - others will stay loyal to the hotels they are working in. Housing in Las Vegas has not reached the the top dollar numbers yet regarding new and resale homes. Many have said that the housing market is in a bit of a decline - I don't see that in Las Vegas and surrounding metro areas. With new arrivals showing at about 7000 per month and losses minuscule, the housing has remained strong.

Where do you put these thousands of new employees from other states arriving with thoughts of joining MGM Mirage in their new endeavor. Most will not be able to afford regular housing in this market area. Thus the smart and progressive move on the part of MGM. It won't quite be a company town - but it will have the trapping of giving your full loyalty to this company if you wish to live in the community.

What cost does this entail for the new partnership of MGM and American Nevada and Diamond Resorts. Number one they are closing two Hotel Casinos that have not lived up to their potential for a while. The competition from Primm Nevada, which is just ten short miles down the same highway has been a bit much for the Jean resorts anyway. The closing of Nevada Landing and Gold Strike won't hurt their bottom line in any significant way - they certainly could have sold these resorts and received a very fair price for it, however there are plans to have a local casino in this planned community as well. The outlook for MGM is much better served with this new innovative plan.

Count on MGM to make new inroads with this development - remember an employee with their needs for housing taken care of and the membership in a solid workforce is what most line employees are in need of. It strengthens the company and binds the employees loyalty.....................