Thursday, March 20, 1997 | 11:59 a.m.
Bally's Grand Inc. said Wednesday it was rescinding its offer to help fund the project, which would build pedestrian tunnels under the Strip and Flamingo Road.
Bally's is the second major resort at the intersection to withhold financial support.
Caesars Palace has supported the project, but is now withhold funding because of a dispute over the use of air space on land it has given the county for a road behind the Strip resort.
The county has requested control of the air space and Caesars officials are concerned that control could be transferred to Mirage Resorts Inc. to build a people mover system between The Mirage and the company's new Bellagio resort. Caesars officials are concerned any people mover system would not include a stop at Caesars Palace.
The county voted in October to build the tunnel in an effort to keep pedestrians off the busy intersection. Some $9 million was to have been contributed by Bally's, Caesars and Bellagio, with $11 million coming from the county hotel room tax and $3 million from federal gasoline tax revenues.
County officials say it's too early to tell how the funding snafu will affect the project.
Bally's chairman Arthur Goldberg said the company was withdrawing its financial backing of the tunnel in support of "Caesars' position with regard to protection of its air space."
Bally's parent Hilton Hotel Corp. is currently engaged in a battle to buy ITT Corp., the owner of Caesars Palace.
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