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Barden 'jewel' casino losing luster?
Critics say casino design changes are going too far
Sunday, July 06, 2008

From the very start, Don Barden wanted his North Shore casino to be the flagship of his Majestic Star chain, a riverside jewel built with lots of glass and a towering drum atrium to maximize its perch on the shore's edge.

With a riverfront amphitheater, docks, and a wide promenade for dining and strolling, the focus was on "activating the river's edge and avoiding the potentially adverse effect of having a large nondescript, windowless box on this beautiful parcel of riverfront property," according to a 2006 Majestic Star development plan.

That's still the plan, according to spokesman Bob Oltmanns. "We are obligated to complete the project consistent with the design we presented to the gaming control board and we will," he said.

But a series of design changes and proposals to delay the amphitheater and other parts of the plan have left critics wondering whether Mr. Barden has watered down his plans as he struggles to secure the financing needed to keep the project going.

"The community attributes are disappearing. That's a shame. Whether you like gambling or not, this is a monopoly license and I feel there should be some giveback to the community in terms of amenities, and that's what's disappearing," said Anne Swager, co-chair of the gaming task force that reviewed all three bids for the city's lone slots license.

The issue came to a head last week when representatives for Mr. Barden presented plans to the city planning commission to delay construction of the 1,000-seat outdoor amphitheater, boat docks and access paths for three years and to scale back other elements, including the amount of trees and shrubs on the riverfront and the amount of brick on the promenade.

They are not the only changes Mr. Barden has made in the project since he won the license from the Pennsylvania Gaming Control Board in December 2006.

Over the last year, Mr. Barden has cut the height of the casino from 85 to 60 feet, reduced the size of drum atrium, the building's signature piece, from 110 feet to 90 feet, and abandoned a plan to put two levels of parking underground, pushing all 10 levels above ground.

The net effect of those changes produced a parking garage that dwarfs the casino, triggering protests from many in the design community and a still-unresolved lawsuit from the Riverlife Task Force.

Mr. Barden also is proposing to delay completion of a casino ballroom for two years, to eliminate crisscrossing sidewalks just east of the casino for a lawn, and make other landscaping alterations.

Lisa Schroeder, the Riverlife executive director, said the cumulative effect of the changes "has resulted in a very different massing of the building."

"We're concerned that the series of changes add up to a very different project from the one originally proposed to the gaming board and the planning commission," she said.

Ms. Swager likewise believes the city could end up getting less than it was promised when Mr. Barden was awarded the license.

"It does look like it's awfully late to change things yet Pittsburgh is left with a less than stellar project because of the changes that are taking place," she said.

Practical reasons, not money

Mr. Oltmanns rejected claims that Mr. Barden was jettisoning features and sacrificing quality to save money. He said many of the design changes, particularly relating to the height of the building, are not unusual for a structure the size of the casino.

"It's an unfair characterization to say that Mr. Barden is cutting corners in the interest of cost. That is not the case," he said.

Mr. Oltmanns said the size of the casino was reduced, not to save money, but to accommodate air handling loads and needs. The drum also had to be reduced to keep it in scale with the rest of the building.

"Otherwise it will look like a silo next to a barn," he said.

The casino scrapped plans for two levels of underground parking after it found it would run into water tables, requiring heavy reinforcement of the walls and waterproofing to prevent leaks. That would have been "extremely expensive," Mr. Oltmanns said, and was not known when Mr. Barden was awarded the license.

He stressed that other features, such as the amphitheater, docks and access paths, were not being eliminated but deferred so they can be paid of out gambling revenues. He vowed that they would be built.

"We are not changing the design. We simply are asking for a little latitude on the construction schedule so we can bring the project in on budget and focus all of resources on completing the building," he said.

Critics, he said, "are not taking into account all the factors we had to take into account to complete this project. It's very easy for critics to throw around rhetoric in the interest of making headlines. It's another thing to bring this project in on budget."

After eliminating the crisscrossing sidewalks just east of the casino, the lawn replacing them will be similar to the great lawn at Heinz Field, he said. Replacing the amphitheaters and docks temporarily will be riprap, boulders, a gabion support wall and grass.

Joseph Weinert, senior vice president of Spectrum Gaming Group, an industry consultant, said changes are not uncommon in major casino projects. He said the ones Mr. Barden is making shouldn't affect the casino's ability to maximize gaming revenues or to market itself as a destination.

"From what I've seen so far, it doesn't strike me as anything that would negatively impact those two goals," he said.

In fact, he saw the delay in completing some of the elements as prudent, given escalating costs. Mr. Barden has said the cost of the casino has increased from $450 million to $780 million.

"If the purpose is to save money so he can complete the aspects of this project that matter most, I think this is a smart move," he said.

Onorato skeptical

Still, some local officials fear the riverfront amenities may disappear altogether. Allegheny County Chief Executive Dan Onorato was the latest official to express misgivings about possible delays Friday.

"I'm very skeptical," he said. "I don't want this to be something that doesn't happen, if you know what I mean."

Sanford Rivers, one of two Pennsylvania Gaming Control Board members from Pittsburgh, said he is expecting just that.

"I'm going into this thing with the expectation that what was approved on Dec. 20, 2006, is what's going to be built for the city of Pittsburgh," he said.

The flap over the design changes came directly on the heels of last Monday's work stoppage at the casino, caused by Mr. Barden's failure to come up with $10 million payment for work completed in April and May.

It led some to conclude that the two were related, but Mr. Oltmanns insisted they were not. Mr. Barden has tried without success for more than two months to arrange the permanent financing after securing a $200 million bridge loan to start construction.

Last week, he reached agreement with Chicago billionaire Neil Bluhm on a $120 million equity investment in the project, the last piece needed to finance the construction, Mr. Oltmanns said.

Mr. Barden is racing to get that piece finalized as well as more than $600 million in additional financing arranged by Credit Suisse in an effort to get the construction rolling once again.

Both issues -- the delay in riverfront elements and the financing -- could come before the gaming board this week, although nothing had been scheduled as of late last week. Mr. Onorato said the board must give direction on both issues.

"They've got to give us some answers, some signals here," he said.

Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
First published on July 6, 2008 at 12:00 am
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