Thursday, March 13, 1997 | 11:59 a.m.
Since the mid-1960s, Caesars Palace has stood opulent and omnipotent on the Las Vegas Strip, very much like the storied Roman Empire for which it is themed.
But now, signs are that, like its counterpart of antiquity, the gaming giant might be on the decline as ITT Caesars has had to fight off a hostile takeover by Hilton Hotels Corp., and now faces the very prospect of losing its airspace to another rival, Steve Wynn's Mirage Resorts.
Two of those properties, the under-construction Bellagio to the south of Caesars and the Mirage to the north, have plans for a monorail that would use Caesars' airspace, yet bypass the more than 30-year-old property.
Rand Araskog, chairman of ITT Corp., a company with $6.5 billion in assets, wrote a letter dated March 6 to the Clark County Commission criticizing its vote two days earlier to approve its south tower only if its airspace is conveyed.
Mirage officials, however, say the commission's decision does not give it Caesars' airspace rights.
"Although we have discussed it, we have made no proposals for a monorail," said Mirage spokesman Alan Feldman. "Assuming we do, Mr. Araskog will have every right to oppose it at that time. All Caesars is doing now is holding up the construction of Resort Boulevard."
Feldman is referring to Araskog saying in his letter that Caesars might pull out of that project, noting "if the county wishes to proceed with a frontage road, it will have to condemn that property at substantial cost to the taxpayers."
Araskog also said in his letter that unless the airspace matter is reconsidered, Caesars' plans for construction of a south tower, which would bolster the county's tax coffers -- $2.6 million in annual room taxes and $1 million in annual property taxes -- is in jeopardy.
"To my dismay, our pre-development agreement for the south tower was approved only if we deeded air space unconditionally over to the county so that Mr. Wynn could build his monorail," Araskog said in his letter.
"We have always indicated to the commission that we would grant air rights for a public conveyance system, which would include a stop at Caesars, but not for the purpose obviously intended."
archive
