With the sale of the Penguins drawing closer, the city and Allegheny County want more than just talk from two casino bidders that have pledged to help fund a new arena, likely a key to keeping the team in town.
They want it in writing.
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County Chief Executive Dan Onorato said yesterday the proposed written agreements could give "a comfort level" to groups interested in buying the Penguins.
Gov. Ed Rendell has asked the applicants for the Pittsburgh casino license to contribute $7.5 million a year for 30 years as part of his $315 million plan to build an arena.
Bidder Don Barden, who wants to build a casino on the North Shore, has pledged verbally to provide the funding.
Forest City Enterprises, which is seeking to build a casino at Station Square, has agreed to the plan in concept, but has not pledged a dollar amount and first wants a commitment from the Penguins to stay in Pittsburgh.
The third applicant, Isle of Capri Casinos Inc., in partnership with the Penguins, has offered $290 million toward construction of an arena as part of its formal bid for the state slot machine license.
Mr. Onorato said the city and county, through the Sports & Exhibition Authority, will ask Mr. Barden and Forest City to put their promises, made in April, in writing.
"We have verbal commitments. We just want to formalize it now with the applicants," he said.
He said the commitments could be important in negotiations with potential buyers to keep the team in Pittsburgh.
In response, Mr. Barden said he already has given his commitment in writing to the state Gaming Control Board, which will award the Pittsburgh license. He said he's also ready to sign an agreement with the Penguins and the county to supply the funding. If the Penguins aren't interested, he said he would sign an agreement with the county.
"We're ready to do that right now," he said.
Abe Naparstek, a Forest City spokesman, said the developer "will have a discussion directly with the county executive" about a written agreement. He had no further comment.
While Forest City officials have yet to commit to a dollar amount in their public statements, Mr. Onorato said he believes it will be $7.5 million a year over 30 years, as requested by the governor.
The push to get written commitments comes as efforts to sell the team intensify. Allen & Co., the New York firm brokering the sale, is expected to trim the list of potential buyers to a couple within two weeks.
Mr. Onorato said none of the potential buyers expressly asked for a written commitment from casino bidders on arena funding, but he added it would give each the assurance the money will be there.
At least two groups are seeking to buy the Penguins with the expressed intent of keeping them in Pittsburgh.
One is headed by New York businessman Andrew Murstein, who has lined up Pittsburgh natives Mark Cuban, the billionaire owner of the National Basketball Association Dallas Mavericks, and Dan Marino, the Hall of Fame former Miami Dolphins quarterback, to be part of his group.
The other is headed by former Pittsburgher Jim Renacci, managing general partner of Arena Football's Columbus Destroyers. He has recruited Denver Nuggets owner George Karl, a Penn Hills native, to be part of his group.
At least several other groups have publicly acknowledged interest in buying the team, but aren't necessarily committed to keeping it in Pittsburgh, particularly without a new arena. The buyer would be obligated to keep the team here only if Isle of Capri wins the casino license.
Mr. Rendell developed the alternative "Plan B" in case Isle of Capri doesn't get the license. In addition to the $7.5 million a year it wants from the winner of the license, the plan calls for the team to put in $8.5 million upfront, plus $4.1 million a year in rent and naming rights.
Another $7 million a year would come from a slots-related state development fund.
The Penguins have the right to move elsewhere once their Mellon Arena lease expires June 30. As of Saturday, they had the right to open conversations with other cities about moving.
All of the potential buyers have received a draft term sheet from the sports authority outlining basic lease issues, including development rights, revenue disbursement, maintenance and operations.
The basic terms are patterned after those received by the Steelers and Pirates for Heinz Field and PNC Park. Those teams keep virtually all revenues from the stadiums and pay nominal rent.