Faced with potential fines from the state Gaming Control Board, the Rivers Casino yesterday paid part of the $7.5 million required of it to help in the funding of the city's new arena.
The $2.35 million payment came a day after the gaming board's Bureau of Investigations and Enforcement recommended action against the casino for violating a condition of its license by not turning over the $7.5 million.
And yesterday Democratic state Sens. Sean Logan of Monroeville and Wayne Fontana of Brookline inserted language into a proposed bill legalizing table games to suspend the Rivers' license and appoint a trustee to run the casino if no payment is made by Oct. 25. The amendments also would ban the casino from receiving a table games license until it makes the payment.
In a letter, Paul L. Seeman, attorney for Holdings Acquisition Co. L.P., the casino owner, described the $2.35 million payment as a "gesture of good will" while the negotiations continue toward a final agreement with the city-Allegheny County Sports & Exhibition Authority, which will own the new arena.
Greg Carlin, the Rivers' chief executive officer, said the partial payment had nothing to do with the gaming board action Wednesday or the amendments advanced by the two state senators, both SEA board members.
Under a twice-a-year payment schedule worked out with the SEA as part of the negotiations, a $2.35 million payment is due Oct. 25, to be followed by another $5.14 million payment April 25.
Mr. Carlin said the casino decided to make the October payment yesterday rather than wait another two weeks because "there are some folks out there who didn't believe our sincerity in making the payment. So we wanted to show we were sincere."
For months, the casino and the SEA have been locked in a dispute over the timing of the arena payments. The SEA has said the first is due this fall. But Rivers officials have maintained they were told last year during negotiations to save the casino from bankruptcy that the first would not be due until at least 2010.
Mr. Logan said he was pleased to see the casino make a partial payment yesterday.
"I think they're just trying to get a little good will going here and I applaud them for it," Mr. Logan said. "They didn't have to make the payment today. They made it in good faith."
If no agreement is reached, the casino could be facing a hearing before the full Gaming Control Board later this month on the complaint filed by the Bureau of Investigations and Enforcement.
Holdings Acquisition committed to making the annual $7.5 million payment for the next 30 years in taking over control of the casino from Detroit businessman Don Barden last year after he was unable to secure permanent financing for the project. The payments are part of the financing for the Consol Energy Center, scheduled to open next year.
Mr. Carlin said the casino intends to honor its commitment and others it inherited from Mr. Barden.
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