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Construction Halts on Ritz-Carlton Rancho Mirage

The Desert Sun website has reported that construction on The Ritz-Carlton Rancho Mirage hotel has shut down indefinitely as of Wednesday.

A spokeswoman could not confirm that the cessation of building is a result of the financial woes of investment giant Lehman Brothers Holdings Inc, which filed for bankruptcy protection on Monday. The official reason given for the halt is that officials are determining an opening date and need to prioritize the phases of construction.

Lehman Brothers is listed as an investor in Gencom Group, the project’s development company. A spokeswoman for the hotel said the project is 80 percent complete and will be finished.

The Ritz-Carlton Rancho Mirage is a $500-million project on the 40 acres that was once the Lodge at Rancho Mirage in California's Coachella Valley. The firs phase of the build was scheduled to be completed in early 2009.