HARRISBURG -- Forest City Enterprises unveiled big changes yesterday in its casino plan for Station Square, proposing a new hotel and a temporary slots parlor, but couldn't escape concerns about revenue forecasts and potential traffic problems.

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Those developments came during a long day when Pennsylvania Gaming Control Board members also pressed Isle of Capri Casinos Inc. on its $290 million pledge for a new arena and whether an alternative plan would keep the Penguins in Pittsburgh.

New Penguins owner Jim Balsillie testified on behalf of the Isle of Capri plan, saying it would tie the team to Pittsburgh, but he was not around to answer questions about the team's future under Plan B, angering gaming board member Mary DiGiacomo Colins.

"Frankly, this is a very crucial point," she said.

The changes, concerns and questions came during the first day of licensing hearings for the bidders for the Pittsburgh casino, with Forest City and Isle of Capri making their pitches. The third bidder, PITG Gaming LLC, will appear today.

Forest City produced the biggest surprise yesterday, proposing for the first time to build a $82.1 million temporary casino with 1,500 slot machines on the east side of Station Square in a warehouse building now occupied by bars and nightclubs.

If awarded the license, Forest City hopes to have the temporary casino open by next October, generating as much as $199.2 million in annual revenue by its second year of operation.

A permanent casino on the west side of Station Square near the Chevrolet Amphitheatre would be built simultaneously, with an expected opening of May 2009.

Both Isle of Capri and PITG Gaming have plans for temporary casinos, and Forest City acknowledged that pressure to get slots revenue rolling was a key factor in the decision. It previously had no plans for a temporary facility.

"It became clear to us it was very important to get the revenues flowing as soon as possible for the commonwealth," said Brian Ratner, Forest City executive vice president of East Coast development.

Forest City also has decided to build a 250-room stand-alone hotel next to the Sheraton Station Square hotel rather than expanding the Sheraton by 200 rooms. The $62.5 million hotel would open simultaneously with a permanent $500 million casino operated by Harrah's Entertainment.

With the changes, Forest City officials also said they would eliminate commuter parking and sporting event parking at Station Square if it gets the license.

The latter moves are an attempt to address traffic concerns that once again dogged Forest City yesterday, as a consultant hired by the gaming board questioned whether proposed improvements would help to ease congestion.

Gaming board member Sanford Rivers said that any time there's a large group of people in Station Square, traffic is a "nightmare." And Albert P. Federico, project manager for McCormick Taylor, the board's traffic consultant, said efforts to mitigate congestion could be a challenge because of the constrained nature of the site.

"With substantial investment, [Forest City] could do something to improve traffic but it's not going to be easy," Mr. Federico said.

Mr. Federico said the Forest City traffic study also assumed a steady flow of traffic during peak times when as many as 1,500 vehicles could be coming into Station Square in an hour.

It did not factor in spikes in the traffic flow, as such studies typically do, and that had the "effect of presenting a more favorable operation than we would have assumed," he said.

Forest City has since developed a revised traffic plan that takes into account some of the concerns, but it was not submitted in time for yesterday's hearing. Forest City officials believe the road improvements they have planned, which include additional turning lanes at the Smithfield Street Bridge, the elimination of commuter and game day parking, and a new traffic control center, will accommodate traffic volumes.

But traffic wasn't the only concern raised by the board. It also questioned Forest City and Harrah's officials about revenue projections that show the casino generating $617.7 million in annual revenue at full operation.

That is 25 percent higher than the board's own task force and consultant have come up for the city casino. They estimate an annual revenue of about $482 million, more in line with Isle of Capri's projection of $487 million a year.

The projections are important because the revenue generated by the casino is one of the key factors in the award of the license. Despite the discrepancies, Forest City board co-chairman Albert Ratner said he was confident the Station Square casino could hit the estimates.

For Isle of Capri, the toughest questioning came near the end of the day, and involved the linchpin of its proposal -- $290 million to fund a new arena for the Penguins and other events.

The arena would be built in the lower Hill District next to the proposed $450 million Isle of Capri casino. Mr. Balsillie told board members that the new arena would remove the "cloud of uncertainty" that has surrounded the Penguins for the last decade.

While the team is required to stay in Pittsburgh under a 20-year lease if Isle of Capri wins the license, board members wanted to know what its future looked like under Plan B, the alternative arena-building proposal developed by Gov. Ed Rendell.

Some board members said they have heard the governor, Pittsburgh Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato say a new arena will be built in Pittsburgh, whether it was by Isle of Capri or under Plan B.

Allan Solomon, Isle of Capri executive vice president, said such statements give "false hopes" to people because Mr. Balsillie is not obligated to keep the team in Pittsburgh under Plan B.

However, when pressed on Mr. Balsillie's view regarding Plan B, Mr. Solomon couldn't answer and the new Penguins owner already had left the hearings for the day.

"Our question is what will he do if Plan B is in effect?" board Chairman Tad Decker said. The board will seek an answer from Mr. Balsillie.

In meeting with reporters after his testimony, Mr. Balsillie said he hadn't been briefed on Plan B in much detail, but added the Isle of Capri proposal, with the arena, casino and proposed lower Hill development, is best for the team and the city in his view.

Under Plan B, the team would have to contribute $8 million upfront and $4 million a year toward the arena construction. There is no team contribution under the Isle of Capri proposal. Plan B also calls for the winning casino bidder to pitch in $7.5 million a year.

Mr. Balsillie said he is "very committed" to the city and won't move the team unless it is "fundamentally kicked out" -- meaning no new arena.

"Clearly we want the most certain plan. Clearly we want the best plan and clearly we want it as soon as possible. With a committed partner in Isle of Capri we get all of that," he said.

Board member Jeffrey Coy asked why state Rep. Jake Wheatley of the Hill District was not among the lengthy list of state and local politicians endorsing the Isle of Capri plan.

Mr. Wheatley, who was attending the hearing, yelled from the back of the room that he's opposed to the plan.

"We will fight tooth and nail to make sure no gambling facility comes into my neighborhood," he said.