For MGM Mirage’s CEO, CityCenter is the biggest Vegas development since the days of Bugsy Siegel.

We understand you’re a “Call me Terry” kind of guy. May we call you Terry?

I would be disappointed if you didn’t.

We were planning on retiring to New Hampshire in 20 or 30 years. But we’re led to believe Las Vegas has it all over the White Mountains. Should we revise our life plan?

I think you’re too young to think about retiring. Las Vegas is a city that changes every day. It’s constantly transforming itself. Thirty years ago, you could buy land for $200,000 an acre. It’s now as much as $35 million an acre. This kind of valuation requires people to think vertically. Back in ’77, there were paved parking lots along the Strip. You thought in terms of five-, six-, seven-story buildings. Now we’re building 50, 60 stories up. CityCenter is our $7.4 billion development that will span the 76 acres between the Bellagio and Monte Carlo on the Strip. It’s the largest privately financed project ever in North America. It will include hotels, condos, spas, retail and entertainment.

Will you retire there

My wife and I are buying a condo in the Mandarin Oriental at CityCenter. CityCenter does seem like a city unto itself.

Have you considered incorporating and running for mayor?

Actually, I was thinking of seceding and becoming president. We would then declare war on the United States — but only if we could be sure we would lose. You know, like The Mouse That Roared.

Your stock has done mighty well this year. How much attention do you pay to the price?

Our largest shareholder said you should never worry about the price unless you’re buying or selling. That advice helps us keep our focus on the long term.

You’ve been working in Las Vegas since the ’70s, when it was more Bugsy Siegel and Michael Corleone than Walt Disney. What has changed most over your career?

When I joined the industry, there were still vestiges of the broken-nose group. But not long after I started at Caesars, gaming came to New Jersey. Now you have casinos in Mississippi, Connecticut, Detroit. The biggest change has been the legitimization of the industry. Every commercial and investment bank wants to be a part of it. It’s well controlled and well understood.

Kirk Kerkorian rates you as one of the best CEOs he’s dealt with. How would you rate Kerkorian’s ability to rate you?

I heard he said that. I was flattered he made that comment. I choose not to read personality profiles written about me.

That was diplomatic. Speaking of Kerkorian, what was it like the first time you met him?

It was the late ’70s. I served on the board of St. John’s hospital in Santa Monica. We were working on a major gifts program, and I was responsible for $11 million of a $25 million campaign. Another board member helped me set up a meeting with Kirk, and I went over to his office to meet with him. It was in a wonderful building in Beverly Hills. We had lunch in the office, nothing fancy. I told him about St. John’s and the program. He asked how far along I was, and I told him I was $1 million short. He said, “No, you’re not.”

Will MGM make more money as a real-estate developer/hospitality group than as a casino operator?

It already does. I think we’ve added another leg to our stool with the real-estate component. It makes sense, since land is so expensive. In 1977, we were 85 percent gaming. Now we’re 63 percent non-gaming. It will be even higher looking out to 2009. I suspect when it stabilizes, you’ll see about 75 percent of our revenues from non-gaming sources.

What’s next?

We own 72 acres in Atlantic City. We’ve presented a proposal to our board for plans to develop a significant project on Renaissance Pointe. It will be called... the MGM Grand Atlantic City. On the international front, I just returned from Macau, where we’re opening the MGM Grand Macau. Macau is the new Las Vegas. And Dubai is very exciting. The Dubai World investment in our company is a paradigm. Our relationship allows us to keep a low level of debt and enhance and grow this company. All that cash flow makes us an investment-grade company — and allows us to move forward aggressively.

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