PITTSBURGH -- Construction on the city's North Shore casino is on hold as the clock ticks toward a deadline set by the developer who wants to take over the project and rescue it from financial straits.

What if the deal falls through? And what about the money promised for the Pittsburgh Penguins' new arena?

WTAE Channel 4 Action News reporter Bob Mayo has confirmed that Pennsylvania taxpayers are the bill payers of last resort if the casino doesn't help pay for the arena.
Video: Watch Bob Mayo's Report

Neil Bluhm leads a group that wants the state to transfer Don Barden's casino license, and he said he stands by Barden's original promise of $7.5 million a year to help finance the arena.

In the current economy, Bluhm said he doubts anyone else will honor Barden's commitments if the state rejects his bid to take over the project.

"That, ladies and gentlemen, is $225 million. I don't know that any new bidder would agree to that," Bluhm said at a Senate committee hearing in Harrisburg Thursday.

When the Penguins, Gov. Ed Rendell, the city and Allegheny County struck their arena deal in 2007, they planned for the worst in case Barden's promise to help pay for the arena evaporated.

And Channel 4 Action News has confirmed that Pennsylvania taxpayers have to pay that $225 million share of the arena bill if the casino does not.

"All the revenue streams that support the arena financing are back-stopped by a commonwealth lease of the new facility. That would guarantee that the debt payments will be made," Rendell spokesman Chuck Ardo said Friday.

County Chief Executive Dan Onorato thinks any new casino owner will live up to the promise of helping pay for the new arena.

"The value of that license in Pittsburgh is still there," he said. "Somebody is going to want to operate this, even with the commitment of $7.5 million for 30 years."

But if Bluhm is right, taxpayers will be making up the difference.

"We would certainly hope that it doesn't come to that, and it just confirms the need to keep the gaming facility on track and on schedule," Ardo said.

Bluhm has warned that Barden's group, PITG Gaming, could go bankrupt next Wednesday, and the casino deal may fall apart if the state Gaming Control Board doesn't approve his group of investors.

The first $7.5 million of Barden's promised payments toward the new arena financing is due in October 2009.

---

Related Links:
More Allegheny County News Get RSS Headlines | Free Desktop Alert

---