PITTSBURGH -- Construction on Pittsburgh's casino could restart as early as next week, according to the man who want to lead the investment.
Neil Bluhm, who is trying to become the new lead investor in the $780 million slot machine casino, said the stalled project could restart pending the state's approval of his takeover plan.
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Watch Bob Mayo's ReportBluhm said that if the state Gaming Control Board doesn't approve his takeover proposal from Don Barden, it could be years before the casino gets built.
Bluhm met Monday with Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravensthal.
"We've increased our commitment to $200 million in equity in order to finance this project," Bluhm said. "The financing, we believe, is in place and ready to go, subject to the gaming board approving the transaction."
Some said Wednesday's meeting represented a rehearsal for Thursday, when Bluhm will go before the state Gaming Control Board in Harrisburg for a hearing about the casino's future.
Ravenstahl and Onorato can't go to Harrisburg because they will be at a groundbreaking for Pittsburgh's new multipurpose arena -- a project which counts on yearly funding from the casino to help pay for construction. The first promised payment of $7.5 million is due in October 2009.
"There's absolutely no local tax money, which is different than the other two stadiums, no local RAD money, no local sales tax money in the deal at all, and there's no threat that they can go after that," Onorato said.
However, the state has guaranteed that it will pay off the money borrowed to build the arena, with, at least at this point, no provision that any new casino licensee other than Bluhm will have to pay for the arena.
Work on the North Shore casino has stopped because contractors on the job are owed millions of dollars from PITG Gaming, led by Barden, who currently holds the city's casino license.
Barden said he has been unable to line up enough financing to move ahead. A group led by Bluhm called Pittsburgh Gaming Holdings has offered to take over the partially built casino.
"The casinos that are serving more local areas like this one are actually doing quite well and the other Pennsylvania casinos are doing well," Bluhm said.
Bluhm, a Chicago-based real estate billionaire, is asking the gaming board to quickly approve his so-called "rescue mission" and prevent the project from falling into bankruptcy, which he said could delay the casino opening for up to four years.
"It's going to be in litigation in a messy bankruptcy and a lot of innocent people will be hurt," Bluhm said. "Contractors are owed over $50 million. Those are local contractors, mostly."
"I'm satisfied with what I heard today," Onorato said. "I think it's going to be good for the region. It's up to the gaming board to go through and vet all of those issues and get it into writing."
Assuming the board determines that Bluhm's financial commitment is solid, and that he will deliver on Barden's promises, Ravenstahl said, "I'm committed to supporting this new ownership and doing what we can to make sure that they're approved and construction can continue."
State Sens. Jim Ferlo and Jane Orie don't want Bluhm to simply be handed a license. They've asked the Gaming Control Board to restart the project from scratch and open it to competitive bidding, which is how Barden got the license in December 2006.
Previous Stories: - July 29, 2008: Pittsburgh Casino Faces Long Delay If Barden's License Taken
- July 25, 2008: If Pittsburgh Casino Goes Down, Taxpayers Help Foot Arena Bill
- July 24, 2008: Hopeful New Casino Leader Tells State Act Fast, Or Else
- July 21, 2008: Onorato 'Skeptical' Of Casino Ownership Change
- July 18, 2008: Pittsburgh Sens. Allege Political Pressure On Casino License
- July 17, 2008: New Investors Agree To Rescue Pittsburgh Casino Project
- July 16, 2008: Ravenstahl To State: Don't Switch Pittsburgh Casino License Yet
- July 15, 2008: Pittsburgh Sens. Ask State To Revoke Barden's Casino License
- July 14, 2008: Pittsburgh Sens. Ask State To Revoke Barden's Casino License
- July 11, 2008: Pittsburgh Casino Rescue Plan Would Reduce Don Barden's Role
- July 7, 2008: Pittsburgh Casino Work Stoppage Continues; Rendell Not Worried
- July 2, 2008: Pittsburgh Casino, Barden Have Seen Plenty Of Problems Already
- July 1, 2008: Pittsburgh Casino Developer Slashes Grand Riverfront Plans
- June 30, 2008: Pittsburgh Casino Work To Stop; Developer Lines Up New Funds
- June 27, 2008: Barden Trying To Secure More Money For North Shore Casino
- June 27, 2008: City Worried About Losing Money If Casino Work Stops
- June 25, 2008: Pittsburgh Slots Casino Developer Doesn't Have Enough Cash Yet
- April 28, 2008: North Shore Casino Owner Tackles Hill District Development Confusion
- February 13, 2008: Riverlife Challenges Pittsburgh Casino Plan; Mayor Responds
- February 7, 2008: Pittsburgh Casino Owner Wants Table Games, Minority Workers
- January 15, 2008: Commission OK's Pittsburgh Arena, Casino Plans; Still No Deal For Hill Residents
- January 9, 2008: Projected Opening Date For North Shore Casino Set
- December 11, 2007: Pittsburgh Casino Breaks Ground; Barden Fires Back At Critics
- November 9, 2007: Barden In Pittsburgh: Casino To Be Green, Smoking Restricted
- October 10, 2007: Pittsburgh Casino Not Set To Open Before 2009
- October 4, 2007: Pittsburgh Casino Says Game-Day Traffic Delays Will Be Minor
- May 30, 2007: Planning Agency OKs North Shore Casino Master Plan
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