HARRISBURG -- The latest deal to save a casino in Pittsburgh faces major uncertainty by as early as July 30 if it is not approved by then by the state Gaming Control Board.

That's what Chicago billionaire Neil Bluhm today told a state Senate committee that is looking into the deal where Mr. Bluhm and other investors would take over for Don Barden, who now holds the slots license for the partially built North Side casino.

"We have a situation where the project could be in default by July 30. The bridge lenders have sent a notice of default and foreclosure. They have threatened to sell the property in foreclosure. This project could go into bankruptcy. That would mean a long delay," Mr. Bluhm said.

He added bankruptcy proceedings could drag on for months and construction costs would almost certainly rise. He didn't say exactly whether his offer of $170 million to take over the project would be withdrawn.

He said he likes the Pittsburgh project but has many others he could pursue around the country.

Sens. Jim Ferlo and Jane Orie did not like hearing of the July 30 deadline.

"You say there is a gun to Pittsburgh's head if we don't move fast," said Mr. Ferlo.

They both complained about the state Gaming Control Board, which they said "lacks credibility" because of what they said was a poor job of examining Mr. Barden's background.

Mr. Bluhm said he was just explaining financial realities caused by great turmoil in the credit markets.

Mr. Bluhm's comments came a day after Standard and Poor's rated his firm, Holdings Gaming Borrower, at "B" -- often referred to as "junk bond" level, saying the firm's fixed-charge burden for the property is high, that current economic conditions are weak and that its first-loss term loan holds a recovery rating of 6, "indicating that lenders can expect negligible (0-to-10 percent) recovery in the event of a payment default."

The ratings firm also said its assessment is tempered by the fact that the casino would face limited gaming competition, has a sizable population base from which to draw and "good demand characteristics" for the region.

Mayor Luke Ravenstahl and Allegheny county Chief Executive Dan Onorato said it is important for the Gaming Control Board to resolve the license issue quickly.

Mr. Ravenstahl said he is sticking to his guns regardless of any deadline, and regardless of who emerges as the city's lone slots casino operator.

"I don't know if I'd refer to it as being held hostage," he said. "But we do need to consider what that deadline means."

He said financing deadlines shouldn't dilute the board's obligation to hear the city's position: That all commitments made related to arena funding, casino design and neighborhood development help be maintained, and that the emerging ownership group proves that it has the money to build and operate the casino.

"Finance the deal. Keep the commitments," he said as he prepared to lead a building code sweep of Allentown. "Whoever it is that can do that the quickest, that can continue construction, is something we should take a look at."

"We don't want to just continue construction at the expense of a sub-par facility or financing that doesn't work."

Last week Mr. Bluhm's group told the mayor in a phone conversation that they would fulfill Mr. Barden's commitments. "That's wonderful in a phone conversation between myself and them, but that has to be part of the public record, that needs to be part of the public dialogue, and the Gaming Control Board needs to hear that in a public forum," Mr. Ravenstahl said today.

The mayor said he understood that a construction delay could "not necessarily jeopardize, but delay funding for the new arena, which is critically important." It also would delay the city's receipt of slots tax revenue.

The worst-case scenario -- foreclosure of the project -- is "not good, and it would further muddy what are already murky waters," Mr. Ravenstahl said. "That's something we all want to try to avoid."

Mr. Onorato agreed.

"Timing is very important here regardless of who controls the project. If it gets delayed too long, we're not going to be able to open it in May because the costs of construction are constantly rising," he said today.

"Timing is critical. I am going to be applying pressure on the board and try to get them to define a process that will give us an owner.

"Forget who gets it. This is about getting the approval process [of an owner] worked out as soon as possible. One thing is critical, however: whoever gets to control the project has to commit to completing the project on the original timetable [May 2009], and they have to deliver all the things Don Barden promised."