PITTSBURGH -- Two state lawmakers want the Pennsylvania Gaming Control Board to revoke Don Barden's license for a slots casino on Pittsburgh's North Shore and force the project to start again from scratch.

State Sens. Jane Orie and Jim Ferlo told WTAE Channel 4 Action News reporter Bob Mayo that they oppose a proposed deal to transfer the city's only casino license from Barden's PITG Gaming to a new group headed by Chicago-based real estate magnate Neil Bluhm.
Watch The Report From WTAE Channel 4 Action News reporter Bob Mayo

"The two of us recognize that this is a train wreck waiting to happen that will put Pennsylvania citizens at risk and the commonwealth at risk," said Orie, R-McCandless. "They need to stop, vet this, make it transparent and open."

"They must reject this license," said Ferlo, D-Highland Park. "We should not accept a bait-and-switch proposal by Mr. Barden or anybody else."

PITG has been unable to secure permanent financing for the $780 million project and related amenities that were promised when the state gave Barden a casino license in 2006. Work on the casino has stopped until the contractors get paid millions of dollars that are owed them.

State Lawmakers Seek To Reopen License Application

The proposed deal with Bluhm would inject new money into the project, but would replace Barden as CEO and make him only a 25 percent partner.

"This is something you've got to put the brakes on," said Orie. "They've made an error in giving him this license. The last thing they can do is make an error like this."

Orie -- a Republican who opposes slots gaming -- and Ferlo -- a Democrat who is in favor of it -- are making a joint request for the state gaming board to reopen the Pittsburgh license competition to new applicants.

"They need to go back to square 1 and begin all over again with due diligence and allow all interested parties to once again compete for this valuable license," said Ferlo. "It's clear that Mr. Barden does not deserve to hang onto this license. He's totally abrogated and reneged on every commitment he's made. So, it's time to pull that license."

The two senators said they think Barden and the new investors are trying to force the board into approving the deal without any public scrutiny or input.

"Mr. Barden and Mr. Bluhm filed this petition saying it's all confidential, everything from who are the partners, what is the financial arrangements," said Orie.

"The transparency is totally lacking," said Ferlo.

City Leaders Counting On Casino Revenues

According to the 2004 financial recovery plan for Pittsburgh, gambling revenues should have brought in tens of millions of dollars for the city by now.

So far, the city has received nothing from gambling.

"I'm counting on that revenue coming in," City Council President Doug Shields said.
Watch The Report About City Reaction From WTAE Channel 4 Action News reporter Jon Greiner

The state budget office sent a letter to Shields two weeks ago projecting that Pittsburgh could receive gambling revenues totaling nearly $40 million in the next four years.

Shields said any delay such as re-awarding the license would cost the city tens of millions.

"This is a vitally important issue. I would hope that our friends in Harrisburg would reach an accord, get to a point where this is totally resolved amicably and without having the license have to be reissued."

Others worry that a delay or reissue of the casino license will also affect revitalize North Shore neighborhoods.

"They also committed to a hiring preference for residents of the North Side and residents of other low income communities in the region. Those are tangible benefits for communities that come out of the addition of casino gambling," said Mark Fatla, executive director of the Northside Leadership Conference.

WTAE Channel 4's Jon Greiner reported the new majority owner of Barden's group said he will keep all of Barden's promised commitments if he gets the license.

A representative for the gaming board did not comment on the issues raised by Orie and Ferlo, but said the senators' request had been received and was being reviewed for inclusion as an exhibit in the public record.

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