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Isle of Capri promoting Hill District grocery
Penguins' casino partner might be willing to subsidize store's operation in giveback to neighborhood
Thursday, May 11, 2006

Isle of Capri Casinos Inc. already is promising a new arena as part of its bid for the Pittsburgh slot machine license. Now it has set its sights on another big challenge -- a grocery for the Hill District.

The casino operator, through its Pittsburgh First alliance, has told the Hill District Gaming Task Force that it would "actively solicit a grocery store developer or operator to locate in the neighborhood."

A grocery has long been at the top of the wish list for Hill District residents, who have gone for decades without a supermarket in their neighborhood. A recent attempt by the city to bring a low-cost, no-frills Aldi store met with resistance from residents, who want a full-service grocer.

Right now, Pittsburgh First is still exploring the feasibility of a grocery , said David Morehouse, consultant for the Penguins, an Isle of Capri partner in the casino bid.

To date, it has hired a consultant to study the issue. That consultant, who was not identified, has been surveying the market and is in town this week meeting with people.

If necessary, the casino operator might also be willing to subsidize the operation as part of its giveback to the neighborhood, Mr. Morehouse said.

"We've been up there for over a year now talking about what the needs are and the thing that came back overwhelmingly was the need for a grocery store," he said.

In its bid, Isle of Capri has promised $290 million for a new arena, a $350 million redevelopment of the lower Hill, and a $1 million-a-year community reinvestment fund targeting the Hill and Uptown. Its casino would be built in the Uptown/lower Hill area.

But there are indications the pledges may not be enough to win over Hill residents concerned about the impact of a casino so close to their homes.

In a survey filled out by about 100 residents who attended a Hill gaming task force meeting Monday, 60 percent felt that the Isle of Capri plan, as now constituted, was "unacceptable."

"The Hill District community at large does not want gambling on the Hill. That was clearly the message [Monday]. The only way gaming would be acceptable or tolerated is if the reinvestment is significant enough to address the social challenges" gambling would create and provide for development opportunities beyond the lower Hill, said Evan Frazier, co-chair of the Hill gaming task force.

Of those surveyed, 75 percent found PITG Gaming LLC's plan for a North Shore casino and $350 million in lower Hill development to be "acceptable" or "exceptional." Fifty-seven percent found the Forest City Enterprises plan relating to a Station Square casino "unacceptable."

Mr. Frazier, president and CEO of the Hill House Association, found Isle of Capri's interest in a Hill grocery "encouraging" but added there has been no detail as to exactly what that entails.

First published on May 11, 2006 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
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