Atlantic City tunnel still ruffling feathers in casino industry

John Curran

Thursday, Feb. 24, 2000 | 4:57 a.m.

ATLANTIC CITY, N.J. - Nearly 16 months after work began on a $330 million road-and-tunnel connector here, executives for the two biggest casino names in town are still bitter about the state's involvement in the project.

Park Place Entertainment Corp. CEO Arthur Goldberg and Trump Hotels & Casino Resorts CEO Nicholas Ribis reiterated their opposition Thursday to state incentives for Mirage Resorts Inc. and its planned $1 billion resort in the marina district.

The state is paying two-thirds of the cost of the 2.2-mile road, which will link the Atlantic City Expressway with the marina district site where Mirage plans to build.

Mirage persuaded the state to help finance the project by saying its casino was unlikely to be built without the road improvements.

Donald Trump and Goldberg have said all along that the project and companion legislation providing tax breaks for Mirage are inappropriate incentives to give an out-of-state company that owns no casinos here.

State and local leaders, however, said the road project will benefit other casinos, too.

In consecutive addresses to a New Jersey Conference of Mayors luncheon Thursday, Ribis and Goldberg sounded the theme anew, without mentioning either Mirage or the tunnel by name.

But they left little doubt among the 300 mayors, municipal officials, casino industry leaders and regulators who were on hand for the speeches what they were referring to.

"I don't think that's the role of government, to come into town and subsidize a company," Goldberg said. "It's a problem of too much government interference."

He added: "What good does it do to have someone come here who really doesn't want to come here unless you make it exceedingly wonderful for them?"

When Ribis took the microphone, he said Goldberg had said what he planned to say. He went on to point out that it was Trump and Goldberg and their companies - which now own half the casinos in town - that have built up Atlantic City since 1978.

"Donald put his money where his mouth is, as he always does," Ribis said. "Mr. Trump and Mr. Goldberg wrote the checks and hired the people, not because someone said you can have this or you can have that if you come here," Ribis said.

Mirage spokesman Alan Feldman declined comment Thursday on Ribis' and Goldberg's statements.

Curiously, they came a day after it appeared as though Mirage and Trump were burying the hatchet. On Wednesday, the companies announced that they had agreed to drop two civil lawsuits involving each other.

In one, Mirage claimed Trump and Hilton Hotels Corp. had pursued litigation and lobbying to block Mirage from ever entering the Atlantic City market.

In the other, Mirage sued Trump and several individuals for allegedly stealing trade secrets.

No money was exchanged as part of the settlements.