Pittsburgh Casino, Barden Have Seen Plenty Of Problems Already

WTAE Channel 4 Looks At All The Setbacks

POSTED: 5:40 pm EDT July 2, 2008

PITTSBURGH -- The Majestic Star Casino being built on Pittsburgh's North Shore has seemingly faced one roadblock after another since the project was announced more than a year ago.

The latest setbacks happened this week, when construction stopped until more financing could be approved by the state, and PITG Gaming owner Don Barden asked the city for permission to push back the construction of several related amenities for about three years.

While the Meadows casino in South Strabane, Washington County, is already generating millions of dollars, Barden has hit his fair share of obstacles since being awarded a state license to build his new slots parlor.

With contractors owed $10 million, and work stopped for now, many are questioning if the state Gaming Control Board selected the best candidate in Barden to run the city's casino.

"If there truly is a financial concern, that will come out with the gaming board," Allegheny County Chief Executive Dan Onorato said.

Barden has faced lawsuits by the two companies which did not win the license that went to his company. The Steelers and the Pirates also held up the casino groundbreaking with traffic concerns.

Through much of the past year, Barden has battled with the zoning board and the Riverlife Task Force about the size and look of the casino's parking garage.

In April, Barden attempted to renege on his $3 million promise to the Hill District. The pledge was reinstated after public pressure.

On Tuesday, Barden announced another change in design. He wants to push back the building of a riverfront amphitheater and a boat dock. Both of those proposed features helped him win the license initially.

Competitors warned of Barden's fragile financial state almost immediately after he was awarded the license. That financial position has become more questionable in the 16 months since.

"During that time, we saw what happened in the world credit markets and the U.S. economy," said Barden spokesman Bob Oltmanns.

The gaming board has not seen Barden's financing for the $780 million project. Oltmanns said billionaire Neil Bluhm's Walnut Capital agreed to inject $120 million in financing on Monday, but the gaming board must approve his investment.

Barden had a very aggressive construction schedule when he broke ground in December. The casino was supposed to be up and running in 14 months. The current work stoppage would seem to put that schedule in jeopardy, although Oltmanns has said that won't be the case.

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