HARRISBURG -- The state Gaming Control Board won't decide before May 14 whether to approve casino developer Don Barden's request for approval of a $630 million refinancing plan for the Majestic Star casino on Pittsburgh's North Shore.
Mr. Barden looked disappointed after an hour-long hearing today, because he'd hoped for approval of the refinancing plan considerably sooner than that. He needs the board's OK to complete the refinancing by May 19, the date by which he must repay a $200 million "bridge loan'' that has enabled him to start construction of the Majestic Star casino on Pittsburgh's North Shore.
The seven-member board said it would next consider the Barden refinancing issue at a special meeting May 14 in Lawrence County. That is one day before a May 15 hearing on a proposed racetrack/casino license for Valley View Downs, to be built west of New Castle.
The gaming board also must approve Mr. Barden's request to put off $8.5 million in construction at the casino, including a ballroom/banquet facility, until a second phase of the project.
The board also must act next month on Mr. Barden's desire to drop plans to make a $3 million grant to the Hill District for community development. He said that promise was contingent on his getting the rights to develop the current arena site, once it is demolished. Those rights went to the Penguins.
He noted that he is still making a $3 million community grant to the North Side Leadership Council, plus $7.5 million a year to help finance construction of the new Penguins' arena, as well as other funds for traffic improvements on the North Shore. Mr. Barden said the construction cost of the casino would be about $600 million. In addition, he has paid a $50 million slot license fee and said there would be about $120 million in soft costs, such as attorneys' fees, contingency fees, interest and other bank fees and insurance costs.
Mr. Barden said he would be much further along on the casino construction if there hadn't been "a conspiracy'' in Pittsburgh against his project.
"Who is behind this conspiracy? I have some suspicions about who is behind it,'' he said.
He didn't exactly name names but complained about lawsuits filed by the two losing bidders for the casino license, Forest City Enterprises and Isle of Capri Casinos, which delayed the start of construction until the state Supreme Court dismissed them. Mr. Barden also mentioned lawsuits over traffic filed by the Steelers and Pirates.
More details in tomorrow's Pittsburgh Post-Gazette.
