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Ravenstahl To State: Don't Switch Pittsburgh Casino License Yet

Mayor Wants Gaming Board Meeting On Barden's Future

POSTED: 6:55 pm EDT July 15, 2008
UPDATED: 7:35 am EDT July 16, 2008

Mayor Luke Ravenstahl wants the state Gaming Control Board to hold off on switching the city's casino license from developer Don Barden to a new investor until his concerns are addressed.

Barden's PITG Gaming has been unable to secure permanent financing for the $780 million casino and related amenities on the North Shore. Work on the project has stopped until contractors get paid.

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Ravenstahl wants to know how a turnover of the slots license could affect the start of slots tax revenue for the city, the funding of the city's new arena and commitments to the Hill District and other neighborhood organizations.

"It is growing increasingly frustrating for me to be asked questions like this, not knowing or hearing from the gaming control board," Ravenstahl said.

Last week, Barden lined up Chicago-based real estate magnate Neil Bluhm to finance the project instead, and their proposal would rename PITG under a new CEO, leaving Barden as a 25 percent partner. The gaming board has yet to approve that deal.

Before the gaming board approves the new casino deal, Ravenstahl wants answers.

He said he isn't happy that he and Allegheny County Chief Executive don't know any more than the general public about what the slots license turmoil means for Pittsburghers.

"Every commitment that was made needs to be honored and lived up to, and we need to make sure that it's a reasonable expectation that this new group can do so," Ravenstahl said.

If the license that was originally awarded to Barden will now go to someone else, Ravenstahl is insisting that gaming board members sit down for a daylong briefing of local officials before deciding who gets it.

"I think we need to be careful and balance the need for, obviously, opening the casino as soon as we possibly can with the reality of, ''We have to get it right this time,' because we're in the pickle we're in now because we didn't get it right the first time," Ravenstahl said.

But Ravenstahl may not be able to get that meeting because, legally, the gaming board members act as judges when they rule on slots license petitions. So, just like the mayor can't talk to a judge or jury about a court case, he can't ask the gaming board about petitions they must rule on.

"Just like any judge, they really cannot get into particulars or comment or discuss this outside at this point," board spokesman Doug Harbach said.

On Monday, state Sens. Jane Orie and Jim Ferlo filed a request with the gaming board to revoke Barden's license and start the project again from scratch with new bidders for the license.

The board said it had received the senators' filing and was reviewing it for inclusion in the public record.

"There has to be more transparency," Ravenstahl said. "The taxpayers and the residents of this city have to know what decisions are being made, why they're being made, who these people are, what their backgrounds are."

Ravenstahl got a briefing by phone from the gaming board's chief counsel and executive staff on Tuesday afternoon. During the conversation, he repeated his request for a face-to-face meeting.


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