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MGM Resorts, AEG to develop indoor arena in Vegas

LAS VEGAS (AP) -- MGM Resorts International and AEG announced Friday they have reached an agreement to develop a privately funded, 20,000-seat indoor arena in Las Vegas for sporting events, entertainment acts and other events.

The companies said the arena will be built on land west of the Las Vegas Strip, between the New York-New York and Monte Carlo hotel-casinos, and will anchor a revitalization of the area, extending from Las Vegas Boulevard to Frank Sinatra Drive. New retail shops and restaurants will be included in the project.

The estimated value of the project wasn't disclosed. It is expected to be financed with equity contributions from MGM Resorts and AEG and with funds from third parties.

Las Vegas-based MGM Resorts owns and manages 15 properties in Nevada, Mississippi and Michigan, including CityCenter, Bellagio, Mandalay Bay, Luxor, Aria and MGM Grand properties on the Strip, among others. AEG, a subsidiary of Anschutz Co., owns sports and entertainment facilities such as the Staples Center in Los Angeles as well as the National Hockey League's Los Angeles Kings.

Shares of MGM Resorts declined 6 cents to end at $12.43 in regular trading. They gained 2 cents in after-hours trading at $12.45.