The Sun Herald reports that work is slowing on the construction of the Margaritaville Casino in Biloxi, MS:

The credit crunch has squeezed even the world’s largest casino company and Harrah’s put an end to rumors about the Margaritaville building site in East Biloxi by releasing details.

“Over the next few weeks, residents of Biloxi will notice less activity and fewer workers at the Margaritaville work site,” vice president of communications Marybel Batjer said in an e-mailed statement. “Rest assured that Harrah’s is not canceling the project. We still believe in the Margaritaville concept, and we remain committed to our vision for the property. This is a project that we studied extensively, and we believe that it still has a great potential to benefit the Biloxi market and our company.

“We simply need to adjust the plan for the development to better align with the economic environment, market conditions on the Gulf Coast and the current financing environment.”

Karen Sock, general manager of Harrah’s Grand Biloxi Casino, met with City Council members before their meeting Tuesday and told them she doesn’t know how the construction slowdown will affect the target completion of 2010.