Despite pressure from Pittsburgh Mayor Luke Ravenstahl, the Penguins won't back the "Plan B" alternative crafted by Gov. Ed Rendell to fund a new arena.
In a statement released yesterday, the Penguins stood behind their commitment to Isle of Capri Casinos Inc., which has pledged $290 million toward construction of the arena if it wins the license for the city's slot machine casino.
"The Isle of Capri made a substantial commitment to Pittsburgh, and the Penguins made a commitment to the Isle of Capri, which we continue to stand by," the team said.
The statement came only hours after Mr. Ravenstahl, at a news conference with Allegheny County Chief Executive Dan Onorato, again pressed the Penguins to get behind Plan B, saying it's the last piece needed to secure the team's future in Pittsburgh.
"It is something they need to do to move this city forward," he said.
It was the second time in a week he had prodded the team to get behind the plan. In a Sept. 15 letter, he urged the Penguins to commit to staying here and to the Plan B formula.
Mr. Ravenstahl himself endorsed the Isle of Capri proposal when he was City Council president, but has said his main goal as mayor is to keep the Penguins in Pittsburgh. He said the Isle of Capri plan does not guarantee that the team, which is for sale, will remain here because it is unknown whether the company will get the casino license.
Penguins officials have said in the past their agreement with Isle of Capri prevents them from committing to Plan B, a point reiterated yesterday by team consultant David Morehouse.
He said yesterday's statement was not a formal response to Mr. Ravenstahl. He added the team still hopes to sit down with the new mayor, who took office after the death of Bob O'Connor Sept. 1.
"We appreciate his support of the Penguins in the past and his desire to do what he can to keep the Penguins in Pittsburgh and we look forward to sitting down and talking to him about that," he said.
Mr. Ravenstahl had no comment on the team's statement. "Anything he had to say, he's said," spokesman Dick Skrinjar said.
Plan B relies on a contribution of $7.5 million a year for 30 years from Forest City Enterprises or PITG Gaming LLC, the two other competitors for the slots license; $7 million a year from a slots-backed state economic development fund; and $4 million a year from the team. It also calls for the Penguins to make an initial payment of $8.5 million.
During yesterday's news conference, Mr. Onorato indicated that the amount the team contributes might be negotiable.
"If that's an issue, bring it forward," he said.
Four groups currently are bidding for the right to buy the team. If Isle of Capri gets the casino license, a buyer would be required to keep the Penguins in Pittsburgh. But a buyer is not bound to participate in Plan B.
The frontrunner in the purchase is believed to be Canadian businessman Jim Balsillie, who might be interested in moving the team to Ontario. Other potential buyers are Hartford real estate developer Sam Fingold, New York businessman Andrew Murstein and Ohio businessman Jim Renacci.
Mr. Ravenstahl said the team has received "highly competitive" offers for the franchise, ones that would establish a price benchmark for the National Hockey League.
At the same time, the city and the county are pressing forward with work related to the new arena, securing the last piece of property needed to build the facility in the lower Hill and Uptown area.
The Sports & Exhibition Authority has reached a tentative agreement with the Laborers District Council of Western Pennsylvania for Fifth Avenue property that now serves as the union's headquarters.
The authority previously had reached deals with nine other property owners for purchases totaling more than $10.85 million to assemble land on Fifth, Colwell Street and Washington Place for the facility.
Mr. Onorato said the latest deal gives the city and the county the land control they need and enables them to meet a Sept. 30 date set by the Penguins for site assembly. He said the city and the county are on pace to open a new arena in 2009.
"There is no reason why this franchise doesn't stay in Pittsburgh for the next 30 years under a long-term lease," he said.
In their statement, the Penguins said they were "encouraged" by the announcement that the city and county had secured the necessary land.
