HARRISBURG, Pa. -- A plan to infuse money into the slot machine casino on Pittsburgh's North Shore -- where construction has stopped because of a lack of funds -- calls for developer Don Barden to hand over 75 percent of ownership and take a lesser role in the project.

"We hope to, with our lawyers and theirs, get something signed within the next 24 hours or so," real estate magnate Neil Bluhm told the state Gaming Control Board Thursday, as he pitched a so-called "rescue mission" for the Majestic Star Casino.

Bob Mayo's Report On Don Barden Majestic Star Casino Hearing

Bluhm is the lead investor in Philadelphia's planned SugarHouse Casino, and his Chicago-based Walton Street Capital is offering $120 million in equity that he and Barden say would push the Pittsburgh casino toward completion.

SugarHouse chief executive officer Greg Carlin told WTAE Channel 4 Action News reporter Bob Mayo that the refinancing plan would include a new name for Barden's PITG Gaming, the company that originally won a state license to build the Pittsburgh casino.

Carlin would serve as the CEO of that renamed company, with Barden only being a 25 percent partner.

"I have no regrets on our efforts," Barden told the gaming board. "We put together a good team. We have a project in a solid position. We just lacked the kind of institutional capital necessary to get this over the goal line."

PITG has been unable to secure permanent financing. Its bridge lenders have notified the company that they believe it is in default and they may "exercise default remedies" that would have a detrimental impact on the completion of the $780 million casino.

"Times are not easy, but it's not his fault and he has put together a very good team," Bluhm said.

"We need to know that construction will be back on track," gaming board Chairwoman Mary DiGiacomo Collins told Barden and Bluhm. "These are important issues for us. Very important."

Under the new plan, a newly formed limited partnership called Holdings Acquisition Co. would become the new licensee that develop, own, and operate the Pittsburgh casino project.

The initial owners of Holdings would be a partnership controlled by Walton and a partnership consisting of Carlin and certain Bluhm family members, to be known as High Pitt Gaming.

Barden's PITG would contribute assets and certain liabilities to Holdings in exchange for partnership interests. Upon closing, Barden would be a principal licensee and indirect owner of Holdings.

Management of Holdings would be a committee comprised of Barden, Carlin, Andrew Bluhm and Neil Bluhm, each of whom would be licensed as a principal.

Carlin said the new deal will honor Barden's original commitment of $7.5 million annually toward the Pittsburgh Penguins' new arena, as well as redevelopment in the Hill District, and related amenities along the riverfront near the casino.

"The city of Pittsburgh, this board, the people of Pennsylvania expect a world-class facility with the amenities that were promised to you and to us at the time we issued that license," gaming board member Sanford Rivers said.

Gaming board members said they hope to approve the request for new casino financing and ownership within the month, which would allow construction to resume on roughly the same deadline that originally projected a grand opening in Spring 2009.

The city's budget counts on at least $10 million a year in tax revenue from the casino starting in 2010.

"It's time to put some finality to this," gaming board member Jeff Coy said. "It's time for us to be able to tell the people, the taxpayers and everyone what's going to happen next, and when it's going to happen. They deserve that."

For community reaction on the lastest casino developments click here: Community Reaction To Casino Investor

Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl were out of town Thursday and unavailable for comment on the latest casino developments. They issued the following statement:

"We are concerned about the recent issues regarding the casino, its ownership and finances. The residents of Pittsburgh and Allegheny County deserve to be informed about any changes in ownership or commitments made by the licensee. Therefore, we are requesting a presentation by the Gaming Control Board to explain the proposed changes and whether they will affect the casino's construction timeline and opening date, as well as the funding of the new multipurpose arena."

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