A state representative from the Hill District says North Shore casino owner Don Barden should get a cut of Mellon Arena development rights or some other return on his investment if he is to commit $3 million to the neighborhood.
Jake Wheatley, D-Hill District, said yesterday it is unfair to require Mr. Barden to honor his commitment for Hill redevelopment after he lost, to the Penguins, the rights to develop the Mellon Arena property.
Mr. Barden has petitioned the state Gaming Control Board to drop the pledge of $1 million annually for three years, part of his winning bid for the Pittsburgh slots license. He said the commitment was contingent on him getting the rights to the 28-acre property. Losing the rights deprives him of parking revenue and other benefits in developing the site, he said.
Mr. Wheatley said the city-Allegheny County Sports & Exhibition Authority showed "utter disregard" for Mr. Barden by denying him the rights, which it had promised to any casino operator that committed to building a new arena. Mr. Barden has committed $7.5 million annually for 30 years toward that end.
"By denying Mr. Barden the development rights on the lower Hill District and freely handing them to the Pittsburgh Penguins, the Hill District $3 million commitment was put at risk," Mr. Wheatley said.
He said he wants Mr. Barden to honor his pledge. But he also wants Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato to find a way to get Mr. Barden a return on the investment, through a cut of the arena development rights or some other means.
He wants to meet with city and county leaders before they meet with Mr. Barden tomorrow to discuss the pledge and other issues, including the casino's financing.
The $3 million pledge was one of the conditions the gaming board placed on Mr. Barden in exchange for the slots license. The condition states the money is for "the redevelopment of the Hill Section" of Pittsburgh.
Mr. Ravenstahl and city Councilwoman Tonya Payne, who represents the Hill, want Mr. Barden keep his commitment. Mr. Onorato said he's keeping an open mind.