Don Barden

A Detroit businessman who is the nation's only African-American casino operator will join the battle for Pittsburgh's slot machine license, with a proposal to build a $300 million to $350 million riverfront complex on land west of Heinz Field.

Don Barden, owner of five casinos, including one in Las Vegas, confirmed yesterday that he will bid for the city's slots rights. He is one of at least six candidates in a field that includes the Penguins and Station Square owner Forest City Enterprises.

Mr. Barden currently owns Fitzgeralds casinos in Las Vegas, Tunica County, Miss., and Black Hawk, Colo. He also is owner of the Majestic Star riverboat casino in Gary, Ind. This week, he completed the $253 million purchase of the Trump Casino in Gary and renamed it Majestic Star Casino II.

In Pittsburgh, the proposed casino also would carry the name Majestic Star. Mr. Barden will head a group called PITG Gaming LLC. He said he would reserve at least 19 percent of the casino ownership for local investors.

His proposed 17-acre site lies between the Carnegie Science Center and the West End Bridge and would include a casino as well as a riverfront promenade, entertainment venues and restaurants.

"We want to fit in with the community," Mr. Barden said. "We don't want to be isolated. We want to blend in and complement other businesses."

The property is owned by MAXT Corp., a limited partnership controlled by Gateway Clipper Fleet owner Terry Wirginis, grandson of Gateway Clipper founder John Connelly. Mr. Connelly purchased 13 acres in 1993 and MAXT has added to it. Mr. Barden has an option on the land and will purchase it if he wins the slots license.

Neither Mr. Connelly, owner of a St. Louis casino, nor Mr. Wirginis will be applicants with Mr. Barden for the North Shore casino. However, Mr. Wirginis said he supports Mr. Barden and may become part of the group at some point.

Mr. Wirginis, a member of the Riverlife Task Force and its executive committee, said he believes Mr. Barden's proposal can further the work of the task force in redeveloping the riverfront.

Mr. Barden described the site as the best in the city and said one of its chief advantages is the proximity of the West End Bridge and easy access to the Parkway West, Interstate 279 and Routes 51 and 65.

He said there is potential for a temporary riverboat casino at the site to begin generating slots revenue for the state and the city while the permanent building is under construction.

However, the closeness to Heinz Field and other North Shore development could be an issue. The Pirates, Steelers, Equitable Resources, and developer Continental Real Estate Cos. all have spoken against a plan by Alco Parking Corp. President Merrill Stabile to build a casino near PNC Park. Mr. Barden said he plans to meet with the Steelers, Pirates and other stakeholders on the North Shore to explain his proposal.

He also said some type of buffer area would be built between the casino property and the science center.

In at least one regard Mr. Barden could have an edge in that he is an African-American casino owner in a state that wants to encourage diversity and minority involvement in its licensed facilities. However, Mr. Barden said he does not want to "use that as a crutch."

"I think our people will be successful on the merits," he said. "We operate at a high standard and we have the capability to compete with anyone."

Mr. Barden explored sites in Pittsburgh and Philadelphia for the last two years before deciding to bid here. He said the state's $50 million slots entry fee and the 54 percent tax rate on revenue made developing two sites infeasible. He said he settled on Pittsburgh because of the demographics and the site.

The emergence of Mr. Barden's bid comes on the heels of plans unveiled by the Penguins this week to team with Isle of Capri Casinos Inc. to build an arena and a casino as part of a $1 billion-plus plan to redevelop the lower Hill District.

Isle of Capri would put up the $290 million to build the arena, which would require no public funding.

Mr. Barden said he also is willing to investigate a way to help provide a new arena. He said his site has the potential to hold such a building, adding that he may talk to the Penguins about possibly joining his team in some way.

But he added there's only so much that can be promised given the state's entry fee and tax rate.

"You can't squeeze the golden egg too much or you're going to splatter it on the floor," he said.

At the same time, he said, he does intend to provide some type of community giveback.

In addition to the Penguins and Isle of Capri and Forest City and its expected partner, Harrah's Entertainment Inc., others expected to submit applications are Mr. Stabile, who also will team with a yet unnamed national gambling operator; MTR Gaming, owner of Mountaineer Race Track and Gaming Resort in West Virginia; and Beaver County developer Charles Betters, who wants to redevelop a site in Hays.

Applications for the Pittsburgh license are due before the state Gaming Control Board Wednesday. Once the applications are deemed complete, the board can take up to a year to issue the license.

Mr. Barden's casinos employ more than 4,300 and generate more than $500 million a year in revenues. Barden Companies is one of the largest African-American owned businesses in the United States.

Mr. Wirginis said he got to know Mr. Barden about 10 years ago when the Detroit businessman was bidding for the license in Gary.