For some state legislators, the proposed convention center hotel Downtown no longer is worth the gamble.

The table games bill now before the state House removes the $34 million designated for the hotel under the 2004 law that legalized slot machines in Pennsylvania.

It's a decision that could be the death knell for a $104 million project long sought by local tourism officials but one that has yet to get off the ground despite the lure of the public subsidy.

Joseph McGrath, president of VisitPittsburgh, the tourism group that has lobbied hard for the hotel, said the move definitely would be a blow to the venture.

"It's not going to help us attract somebody, that's for sure," he said last night.

Under the revised version of Senate Bill 711 before the House, the $34 million would be redirected to fund economic development, job training, infrastructure development, community development, public safety and other projects "in the public interest" in Allegheny County.

With efforts to build the hotel languishing, state Sen. Jay Costa, D-Forest Hills, said yesterday the consensus among local House and Senate Democrats was to redirect the money for other purposes.

"At this point in time, we don't see anything happening with the convention center hotel," he said.

The city-Allegheny County Sports & Exhibition Authority has been trying for some time to finalize a deal with Cleveland-based Forest City Enterprises, tapped six years ago to build the hotel, but has been unable to do so.

Sen. Wayne Fontana, an SEA board member, said that even with the $34 million in public help, it would not be enough to build the 500-room headquarters hotel city and county officials wanted next to the David L. Lawrence Convention Center. In fact, Forest City has sought to cut the number of rooms from 500 to 300 to fit the budget.

"You can't build it anymore for that money and nobody seems to be interested in pursuing a hotel at that location," the Brookline Democrat said.

"The whole point was the money was supposed to be an incentive. It doesn't seem to be doing the job."

He and Sen. Jim Ferlo, D-Highland Park, noted that a number of other hotels have popped up Downtown and on the North Shore in the last six years, raising further questions about the need for the convention center project.

"The economics have changed. There's a plethora of mid-sized hotels in the immediate corridor and the North Shore. Things have significantly changed," Mr. Ferlo said.

Mr. Costa said that if a hotel deal is cut with Forest City or someone else, the developer still could apply for the redirected funds, which would be held in a restricted account in the state Department of Community and Economic Development. Under the bill, requests for funds would be submitted to the Commonwealth Financing Authority through the county's Redevelopment Authority.

However, there is nothing that would prevent the funds from being spent on other projects in the interim, potentially leaving a smaller pot or none at all for the hotel.

"I think the project itself killed the project. The hotel community is saying that's not the marketplace right now," Mr. Ferlo said.

Mr. McGrath agreed that the project has languished, but he added that redirecting the $34 million is no way to get it moving. He said the decision not only will hurt the project but the convention center itself, which was counting on the hotel not only to attract business but to be its front door.

While a number of hotels have been completed or are under construction Downtown or on the North Shore, they will not help to fill the convention center because "delegates won't stand for the inconvenience of commuting back and forth," he said.

The lack of a headquarters hotel, he added, has been cited as the top reason Pittsburgh is passed over for conventions.

"We're not trying to make excuses or point fingers or blame. All we're saying is that studies have told us for 20 years that if you want to grow, this is what you need," he said.

Mary Conturo, SEA executive director, could not be reached for comment. Representatives for Mayor Luke Ravenstahl and county Executive Dan Onorato declined comment, saying they had not seen the legislation.

VisitPittsburgh has said the city loses some 80,000 room nights a year without a headquarters hotel. As envisioned, the facility would be paired with the existing 616-room Westin Convention Center hotel next to the convention center to provide a bank of more than 1,000 rooms.

Nonetheless, local House and Senate Democrats felt the better option at this point was to use the money for other economic development projects in the county, Mr. Costa said.

"At the end of the day, we believe it's important for economic development projects to receive funding rather than sitting around waiting for a hotel developer to come to town," he said.

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