An artist's impression of the proposed arena. More views below.

Isle of Capri Casinos Inc., a major player in the gambling industry, is the power behind a $1 billion plus plan to to redevelop the lower Hill District and secure the Penguins' future in Pittsburgh.

The Penguins are banking that the proposal -- in which Isle of Capri also promises to build an arena -- will carry the day with state regulators and enable Isle of Capri to capture the license for a Pittsburgh slots casino.

"When you look at the merits of what we've spoken about today," Penguins President Ken Sawyer said yesterday, "it's pretty hard to think why not? Great site. Great opportunity to keep the team here, get a brand new arena at no cost."

Isle of Capri, with 15 casinos in 13 locations in the United States, Europe and the Bahamas, will be teaming with the Penguins, Nationwide Realty Investors of Columbus, Ohio, and a community coalition led by the Rev. James Simms, a former Allegheny County Council president, in an ambitious plan to remake the lower Hill District with at least $400 million in new office, retail and residential development.

The gambling operator would supply $290 million for construction of an 18,000-seat arena for hockey, concerts and other events. It also expects to commit at least another $1 million a year in slots revenues for community givebacks, said Tim Hinkley, Isle of Capri president and chief operating officer.

The Penguins will take no profits from the casino or have any equity role in its ownership. The team would, however, operate and keep the revenue from the new arena, in an arrangement similar to one the Pirates and Steelers have at PNC Park and Heinz Field. Like the stadiums, the arena would be owned by the city-Allegheny County Sports & Exhibition Authority.

		The Penguins' partner Here are some facts about Isle of Capri Casinos Inc., announced yesterday as the casino operator if the Pittsburgh Penguins are awarded the slot machine license for Pittsburgh: A billion-dollar corporation founded in 1992. Operates 15 land and riverboat casinos in the Bahamas, Colorado, Florida, Iowa, Louisiana, Mississippi and Missouri and the Pompano Park Harness Track in Florida. Founded by Bernard Goldstein, a former lawyer, river freight transporter and scrap metal dealer often referred to as the "Father of Riverboat Gaming" and named "Top Performing CEO" in 2001 by the American Gaming Association. Uses a Caribbean, "fun in paradise" theme at all of its casinos. Opened the first legal gambling operation in the South, a riverboat in Biloxi, Miss., in 1992.

"It was our decision to make sure the maximum can be provided for a new arena," Mr. Sawyer said. "We just want a place to play."

The entire effort, of course, is contingent on Isle of Capri winning the state license to operate the Pittsburgh casino in a competition that may be the most heated for any venue in Pennsylvania.

Even as public officials scramble to find ways to fund a new arena and keep the Penguins, with or without gambling revenue, Mr. Sawyer said there is a "risk" that the team could leave town if it and its partners do not get the slots license.

The Penguins' lease at Mellon Arena expires June 30, 2007, but Mario Lemieux and his ownership group can start shopping the team this summer. Mr. Sawyer said there is a possibility that could happen even with a slots application pending before the state Gaming Control Board, which could take up to a year to award the license after Wednesday's application deadline.

"We have to make sure we know where we are a year from now. It's been very, very difficult for us to operate the last several years in the old arena," Mr. Sawyer said.

The Penguins and Isle of Capri are expected to be one of at least five competitors for the Pittsburgh slots license.

Others include Station Square owner Forest City Enterprises, which is expected to team with gambling power Harrah's Entertainment; Alco Parking Corp. President Merrill Stabile; MTR Gaming, owner of Mountaineer Race Track and Gaming Resort in West Virginia; and Beaver County developer Charles Betters.

Mr. Stabile had little comment on the plan, saying he wanted to see more details. But John Brabender, an MTR spokesman, said he saw advantages to MTR's plan to build a casino on the North Shore while directing about $6 million year to funding an arena. The casino, he said, would be in a separate location from "where you're going to have 'Sesame Street on Ice.' It gives the community the best of both worlds."

Publicly traded Isle of Capri has 11,000 employees and generates about $1.1 billion in gambling revenues annually. It is not as big as Harrah's or MGM Mirage but "definitely has evolved into one of the major players in the gaming industry," said Joseph Weinert, vice president of Spectrum Gaming Group, an industry consultant.

	Martha Rial, Post-Gazette Tim Hinkley, Isle of Capri president and chief operating officer, announcing plans for a 18,000-seat arena for hockey, concerts and other events.

In addition to Pittsburgh, the company had been investigating sites in the Lehigh Valley in Eastern Pennsylvania for a possible casino.

The Pittsburgh casino, which would reflect Isle of Capri's trademark Caribbean theme, and the new Penguins home would be built on a 50-acre site that now includes Mellon Arena. The two venues probably would be built side by side and would cost $600 million to $700 million combined.

About 28 acres of land now occupied by the arena would be opened for redevelopment, to be spearheaded by Nationwide Realty. The company developed Nationwide Arena in Columbus and a surrounding arena district filled with bars, clubs, housing and a movie theater.

It also has been involved in The Waterfront shopping and residential complex in Homestead and as an investor in the ongoing redevelopment of the North Shore between the stadiums.

The Penguins and Isle of Capri plan to form a nonprofit coalition called Pittsburgh First to redevelop the arena site into residential, office and retail space. A goal is to reconnect the Hill District with Downtown, one of the reasons Mr. Simms, a member of Pittsburgh's state-appointed oversight board, decided to support the proposal.

The proposal also has the backing of the Greater Pennsylvania Regional Council of Carpenters. State Sen. Jim Ferlo, D-Highland Park, also gave it an initial endorsement, calling it an "economic development no-brainer."

County Chief Executive Dan Onorato could not be reached for comment.

In a statement, Mayor-elect Bob O'Connor said the effort to build a new arena "is off to a good start. I'm looking forward to working with Dan Onorato and the Penguins to secure a new arena for Pittsburgh and the region."

Isle of Capri already has begun filing information related to its application to the Gaming Control Board. If awarded the license, it expects to begin construction of the casino in early 2007. It also may open a temporary casino site above the existing arena.

Earlier yesterday, in another arena-related development, the Penguins received an the option to renew their lease for one year to June 2008 under an amendment approved by the sports authority board.

Authority Executive Director Mary Conturo said the one-year option gives public officials and the Penguins some breathing room to find a way to finance a new arena.