Las Vegas Review-Journal

Companies file claims for efforts on Sphere

Liens totaling $3.3M from subcontrac­tors

- By Richard N. Velotta

Three constructi­on liens totaling $3.3 million have been filed by subcontrac­tors working on the $1.66 billion MSG Sphere at The Venetian entertainm­ent venue.

The liens were filed for $119,270 on behalf of Commercial Scaffoldin­g of NV Inc., Las Vegas, on April

10; $2.7 million for Harris Rebar Las Vegas Inc., on June 5; and $555,481 for Parsons Electric LLC, Las Vegas, on July 7.

The largest of the liens involving Harris Rebar was quickly attached to a bond, releasing the lien.

The liens, filed in Clark County, were directed at two subsidiari­es of MSG Entertainm­ent and Las Vegas Sands Corp.: MSG Las Vegas LLC and to Sands Arena Landlord LLC.

According to the Nevada secretary of state’s business website, Sands Arena Landlord is managed by Venetian Casino Resort LLC, and MSG Las Vegas is overseen by New Yorkbased MSG National Properties LLC.

New York-based Madison Square Garden Entertainm­ent Co. emailed a statement on the liens.

“We have been working with the subcontrac­tors to address these claims and have been requesting the appropriat­e level of documentat­ion

for the work performed so they can be paid accordingl­y,” an MSG spokeswoma­n said.

Representa­tives of Las Vegas Sands had no comment on the liens, but legal experts say lien obligation­s routinely fall to project developers and not the landlord.

A mechanics lien is a legal claim for unpaid constructi­on work. When a contractor files a mechanics lien, it gains a security interest in the property. The lien clouds the real estate title, making it difficult for the

property owner to sell or use it until the lien claim is paid, according to New Orleans-based Levelset, which helps contractor­s and suppliers get payments on projects.

Typically, anyone who provides labor or materials to property improvemen­ts can file a mechanics lien if they are not paid. Because a lien disrupts the flow of funds on a constructi­on project, it gets multiple parties, like lenders, property owners and general contractor­s, involved in making sure the right people get paid.

In documents filed with the Clark County recorder’s office, the original contract for Commercial Scaffoldin­g was for $6,208 and was expanded by $113,062 with no payment received.

The original contract for Harris Rebar was for $38 million, of which $33.1 million was paid.

The original contract for Parsons Electric was for $831,530, amended to add $160,532, with $436,571 paid.

The Review-journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson. The Sphere is a project by Madison Square Garden and Las Vegas Sands Corp.

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