EmailEmail
PrintPrint
Casino owners mull opening earlier in temporary facilities
Saturday, December 10, 2005

At least three of the potential applicants for the Pittsburgh slot machine license are considering temporary facilities to get the cash flowing while a permanent casino is under construction.

The possibility of a temporary casino, which is permitted under the state's slots law, concerns members of the Pittsburgh Gaming Task Force, who are worried about its quality and the potential for it to become permanent.

"I think our concern is, where are the assurances that temporary won't become permanent? We would be watching for that and watching for any agreement that goes into place for that," task force co-chair Anne Swager said yesterday.

The issue of a temporary casino arose Thursday, when the city's Urban Redevelopment Authority board passed a resolution allowing use of its Melody Tent site above the Mellon Arena for such a facility for up to two years to any slots operator willing to build or fund a new arena.

Outgoing city Councilman Sala Udin, a URA board member, said the Penguins, one of the expected bidders for the license, had expressed an interest in using the land for a temporary casino if it won the slots rights.

Under the URA resolution, the same offer would be available to any other applicant with an interest in building or funding an arena.

The Penguins, in pursuing the license, hope to use the slots revenue to build a replacement for the aging Mellon Arena, the oldest in the National Hockey League.

David Morehouse, a consultant for the Penguins, refused to say yesterday whether the team would erect a temporary casino on the Melody Tent site, now a parking lot, if it got the license.

However, he did say the Penguins wanted "to provide the greatest amount of flexibility for a gaming entity who is going to privately fund the construction of an arena for the city and the county."

Spokesmen for two other potential applicants -- MTR Gaming and Beaver County developer Charles Betters -- said they are considering the possibility of a temporary venue should they get the slots license.

MTR, which owns Mountaineer Race Track and Gaming Resort in Chester, W.Va., wants to build a casino on the North Shore near the 16th Street Bridge.

Spokesman John Brabender said the company would consider a temporary venue.

"They certainly want to keep that on the table as a possibility but it's nothing definite," he said. "If that would help to give a shot in the arm to the community economically, that's certainly something they would want to do."

Mr. Brabender said MTR's proposed site for the permanent casino also should be able to accommodate a temporary facility.

In Hays, Mr. Betters is planning a casino as part of a $600 million Pittsburgh Palisades Park development, which would include a thoroughbred horse racing track and residential and commercial activity.

David Fawcett, an attorney for Mr. Betters, said there has been discussion about a possible temporary facility.

"I don't know any particulars other than it's been discussed. If it would be a way to get up and running quicker, we would do it," he said.

Alco Parking Corp. President Merrill Stabile, who is seeking to build a casino on the North Shore near PNC Park, declined comment, as did a spokesman for Station Square, the other known potential casino site.

During its meeting last week some Pittsburgh Gaming Task Force members said they had heard that Forest City Enterprises, Station Square owner, was considering the use of the complex's east warehouse, which houses Hooters Restaurant and other nightclubs, as a possible temporary casino.

However, a Forest City spokesman yesterday described that "rumor" as inaccurate.

Under the state law legalizing slots, the casino operator can apply to the state Gaming Control Board to erect a temporary facility for a period of up to two years. The board has the option to extend that another year if it so desires.

Ms. Swager said one of the task force's fears is that a temporary venue could become more permanent, much like in Detroit where three casinos that opened in 1999 at temporary locations still haven't moved into permanent homes and may not until 2007 or 2008.

The task force has adopted very specific design guidelines for a permanent casino in Pittsburgh. Ms. Swager said it may consider doing the same for a temporary facility.

"It might be something we ought to consider if everyone is going to go for a temporary upfront," she said.

First published on December 10, 2005 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
Featured Homes
Featured Rentals