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Slots panel's wish list is vague
Mayor's task force gives casino hopefuls no specific demands
Friday, November 04, 2005

The Pittsburgh Gaming Task Force gave its first indication of the kind of givebacks it expects from a casino operator yesterday, but it did not mention a new arena or any other potential project.

With representatives of several potential casino operators in the audience at the group's invitation, the task force chose to speak in generalities rather than specifics.

For instance, instead of calling for slots revenue to be used for an arena, a neighborhood fund or some other project, an interim report simply states that any community investment strategy "shall seek to maximize the economic return of the gaming operation to the City of Pittsburgh and its residents."

Task force co-chair Ronald Porter said afterwards the group thought it "was just too early" to make any specific recommendations.

"The truth is that there's still a lot of churning of ideas," he said. "A lot of these ideas have multiple advocates and we have to reconcile all of these ideas before we step forward. We don't want to create a political or a community firestorm by advocating one over another too early in the game."

Mayor Tom Murphy, who believes slots revenue should be used to build a new arena, said he wasn't disappointed that the task force he appointed stopped short of making specific recommendations.

"My sense is that they would prefer to have the operators suggest," he said.

Under the state law authorizing slot machines, 2 percent of the gross revenue must go to the city for hosting the facility. There is no requirement for operators to do anything else, but the state gaming board has said it would look more favorably upon applications for slots licenses that include additional money for community projects.

The local task force can suggest what it would like to see in the way of community projects, and Mr. Porter said he expects the panel to become more specific in the next month or so. He acknowledged that supporters of the Penguins' casino bid and companion replacement of Mellon Arena seem to be most active so far.

Two Penguins fans who set up the Slots For Mario Web site have presented the task force with petitions signed by more than 26,000 people in support of the team's bid for the city casino license, with the revenue being used to replace the arena and keep hockey in Pittsburgh. A number of people also have testified in support of the idea at task force community meetings.

Nonetheless, Mr. Porter said the task force wants to take more time before making any final decisions.

"In sheer volume, there's one option that is louder than any other. But we want to be sure that as we move forward we listen to softer voices to be fair," he said.

Despite the generalities, Alco Parking Corp. President Merrill Stabile, who wants to build a casino on the North Shore near PNC Park, said he found the presentation and others provided yesterday by the task force useful.

"One of the strategies of our group is to try to address a wide range of concerns and needs and try to please as many different constituents as possible because this is such a sensitive thing to so many people," he said.

Also attending the meeting were representatives of developer Forest City Enterprises, which wants to build a casino at Station Square, and Beaver County developer Charles Betters, who wants to build a casino as part of a 635-acre development in Hays. They declined comment afterward.

Consultant Jennifer Lendler has told the gaming task force that the Pittsburgh casino could generate as much as $450 million a year in gross revenue and 5 million to 6 million visits.

The potential investment by the eventual operator in the casino and other amenities could range from $200 million to $500 million.

But Ms. Lendler has cautioned members that the state's high tax rate on revenue -- 54 percent -- and $50 million entry fee could limit investment.

First published on November 4, 2005 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.