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Last parcel secured for new hockey arena
Friday, September 22, 2006

Pittsburgh and Allegheny County have a deal to secure the last piece of property needed to build a new hockey arena.

The Sports and Exhibition Authority has reached a tentative agreement with Laborers District Council of Western Pennsylvania for a Fifth Avenue property in Uptown that now serves as the union's headquarters.

County Chief Executive Dan Onorato said this morning the agreement gives the city and the county control over all the land they need for the new arena, which would cost about $300 million. He also said the deal enables the city and county to meet a Sept. 30 deadline set by the Penguins for site control.

Mr. Onorato said the city and county are now on schedule to have a new arena built by 2009, the same goal the team has for playing in the facility.

"There is no reason why this franchise doesn't stay in Pittsburgh for the next 30 years under a long-term lease," he said.

During a press conference, Mayor Luke Ravenstahl pressed the Penguins to commit to Plan B, the alternative package crafted by Gov. Ed Rendell to keep the team in Pittsburgh.

Mr. Ravenstahl said the team has received "highly competitive offers" for the purchase of the team, ones that would set a benchmark for the National Hockey League.

Given that, he said it was important for the team to commit to Plan B.

"It is something they need to do to move this city forward," he said.

The Penguins have an agreement with Isle of Capri Casinos Inc. to provide $290 million for a new arena if Isle of Capri gets the one available city slots casino license from the state. Plan B was crafted in the event that Isle of Capri does not get the license. It calls for $7.5 million a year for 30 years to be contributed toward the arena by the two other bidders for the casino, Forest City Enterprises and PITG Gaming LLC.

It would also require the Penguins to commit $4 million a year. Another $7 million would come from a slots-related state economic development fund.


More details in tomorrow's Pittsburgh Post-Gazette.

First published on September 22, 2006 at 12:00 am