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Major development outside Grand Canyon hits snag

FLAGSTAFF, Ariz. -- Thousands of tourists drive through Tusayan (TOO'-say-ohn) each day on their way to the Grand Canyon's South Rim.

Developers have sought for decades to seize on the heavy traffic. An Italian group came forward with plans that are themselves grand: a dude ranch, high-end boutiques, five-star hotels, cultural center, hundreds of homes and a high-density shopping area.

But Stilo Development Group USA has defaulted on an agreement with town officials, and its application to access land it owns has hit a snag with the U.S. Forest Service.

The town hasn't given up on Stilo but its mayor said he wants to see some progress soon.

The two sides have scheduled a mediation hearing in late September but are hoping to agree on how to move forward before then.

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