The Rivers Casino will pay its $7.5 million a year toward construction of the new arena in two installments under an agreement approved by the city-Allegheny County Sports & Exhibition Authority board today.
The deal splits the casino payment into two pieces, one in October and one in April, for 29 of the next 30 years.
It ends months of dispute between the two sides over the timing of the payments. At one point the state gaming control board threatened to fine the casino unless it came up with its first payment, which was due this fall. The casino avoided the penalty by making a $2.35 million payment last month.
Under the agreement approved today, the casino will make payments Oct. 1 and April 1 until 2038, when it makes one final $7.5 million payment. The casino committed to paying $7.5 million a year toward the arena as a condition of its license.
As part of today's deal, the SEA will send a letter to the gaming board opposing the issuance of a license for another casino within 60 miles of the Rivers unless that casino is required to pay a proportional amount of the $7.5 million annually.
Today's approval came in the most unusual way, with two board members voting by cell phone and two by conference call.
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