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18 local officials line up behind Penguins' arena-casino plan
Onorato and O'Connor withhold endorsement until all bids evaluated
Thursday, January 12, 2006

The lineup the Penguins unveiled yesterday didn't take the ice in Columbus, Ohio, last night, but the team is hoping it eventually will help score a victory -- securing the license for Pittsburgh's slot machine casino.

Steve Mellon, Post-Gazette
Penguins president Ken Sawyer looks out over the site on a proposed arena-casino development near Mellon Arena. Several local and state lawmakers voiced support for the plan yesterday at a news conference.
Click photo for larger image.
Led by state Sen. Jim Ferlo and City Council President Luke Ravenstahl, 18 city, Allegheny County and state lawmakers endorsed the Penguins' plan to build a new arena and to redevelop the lower Hill District as part of its casino bid. Funds for the project would come from gambling revenue.

But two of the region's most prominent leaders, Pittsburgh Mayor Bob O'Connor and county Chief Executive Dan Onorato, weren't among those backing the plan.

Although both have embraced the idea of using slots revenue to fund a new arena, spokesmen for Mr. O'Connor and Mr. Onorato said they want to review all of the casino proposals before deciding whether to endorse any.

Still, mayoral spokesman Dick Skrinjar said Mr. O'Connor wants the slots license to be a vehicle to benefit the community in much the same way that Andrew Carnegie used his wealth to build libraries.

"He doesn't want any public money going into building a new arena," he said.

The 18 who backed the Penguins' plan joined several other groups or individuals, including the Greater Pittsburgh Regional Council of Carpenters and the Rev. James Simms, a former County Council president, that have already endorsed the proposal.

Such endorsements are part of a very public effort by the Penguins to build momentum for their plan and to try to trump three competing proposals for the lone Pittsburgh slots license, two involving sites on the North Shore and one at Station Square.

After yesterday's news conference, many of the politicians and some news media representatives boarded a bus for Columbus to visit Nationwide Arena, where the Penguins played last night, and tour the surrounding Arena District.

The developer of that area, Nationwide Realty Investors, also would be in charge of redeveloping the land around Mellon Arena and reconnecting Downtown and the Hill District under the Penguins $1 billion plus casino proposal. It also is teaming with Isle of Capri Casinos.

Mr. Ravenstahl was among four City Council members endorsing the team's plan. The others were Jim Motznik, a Penguins fan, William Peduto, and Tonya Payne, the former president and chief executive officer of the Uptown Community Action Group, who represents the Hill District.

Ms. Payne said the proposal gives the community a chance to "right a wrong" that occurred more than four decades ago when the then-Civic Arena was built and essentially separated the Hill District from Downtown.

"This wasn't a hard one for me. It's an opportunity to create jobs. If you want a vibrant city, people need to work so they have money to spend and contribute to the economy and the city," she said. The plan also "changes the whole landscape for Uptown and the community."

Mr. Ferlo, D-Highland Park, said the Penguins' proposal was the only one of the four casino plans to help build the Downtown core.

With hockey and other events at the arena, the proposal has the potential to generate the most amusement tax revenue for Pittsburgh at a time when the city is struggling to make ends meet, he said.

The city also would get two 2 percent of a casino's revenue, regardless of where it's located.

State Sen. Jay Costa, D-Forest Hills, said one of the reasons he is backing the plan is to avoid using up to $90 million in state capital funds previously promised for an arena. Using that much state money for a new home for the Penguins could prevent other worthy projects from being funded, he said.

Others endorsing the Penguins proposal yesterday were state Sens. Jane Orie, R-Bradford Woods, and John Pippy, R-Moon; and state Reps. Frank Dermody, D-Oakmont, Dan Frankel, D-Squirrel Hill, Joe Preston, D-East Liberty, Joe Markosek, D-Monroeville, Marc Gergely, D-White Oak, Paul Costa, D-Wilkins, Sean Ramaley, D-Ambridge, Frank LaGrotta, D-Beaver, and Nick Kotik, D-Coraopolis. Also backing the plan was county Councilman Bill Robinson.

The Pittsburgh Gaming Task Force, appointed by former Mayor Tom Murphy to assess the impact of gambling on the city, expects to meet with the four casino license applicants at some point, but right now "we are not remotely close to endorsing anyone," Co-Chairman Ron Porter said.

Isle of Capri has pledged $290 million toward a new arena. The Penguins said the team would fund any costs higher than that.

First published on January 12, 2006 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.