New Las Vegas Strip arena to cost $350 million

Vegas Strip Park

This illustration released by the MGM Resorts International shows the intersection of Las Vegas Blvd. and Rue de Monte Carlo in Las Vegas. MGM will announce Tuesday April 16,2013 that it is spending $100 million to overhaul the area outside MGM Grand, New York New York and Monte Carlo. The casino will add a public park to the famous intersection of Las Vegas Blvd and Rue de Monte Carlo. Launch slideshow »

AEG and MGM Resorts International have ironed out the details of a deal to build a $350 million arena behind the Monte Carlo and New York-New York resorts.

Planned as the centerpiece of MGM’s ongoing $100 million project to revitalize the cluttered pathway between the two resorts and bring more visitors outside, the 20,000-seat arena will stretch from Las Vegas Boulevard to Frank Sinatra Drive.

Officials expect to break ground on the arena in summer 2014 and open in spring 2016. Finances will be siphoned from equity contributions made by each of the partners and funds from a third-party source.

“The combination of MGM and AEG, along with the excellent Las Vegas Strip location, is already driving interest from potential investors in this exciting new development,” Jim Murren, MGM Resorts International chairman and CEO, said in a statement.

Populous, a leading design company with large arenas in London and Berlin, has signed on to design and develop the arena, expected to house major sporting events, concerts and private events.

“Bringing together the knowledge, experience and assets of our respective organizations, we will create an arena that offers fans the best live entertainment experience,” AEG CEO Dan Beckerman said.