Jul 29, 2008 6:01 pm US/Eastern
Board Won't Rush Decision To Transfer License
PITTSBURGH (KDKA) ―
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Construction has stopped at the site of the proposed casino on the North Shore.
KDKA
Last week, Chicago billionaire Neil Bluhm warned everyone that tomorrow, July 30, was a key date. That's when Don Barden's creditors could force the North Shore casino project into bankruptcy.
That would make the casino project too expensive for Bluhm to rescue it.
Today, PA Gaming Control Board officials told County Executive Dan Onorato and Mayor Luke Ravenstahl that these concerns would not rush them into a quick approval of Bluhm's proposal.
After meeting with Onorato and Ravenstahl this morning, senior officials of the Board made it clear they would not rush any decision to transfer majority ownership of Pittsburgh's casino from Don Barden to Neil Bluhm.
"Once staff is done reviewing, we will promptly schedule a hearing. but we will not schedule it until it's ready to be scheduled," said Doug Sherman, chief counsel to the Board.
In other words, the Gaming Board is ignoring pleas from Bluhm for prompt action to keep the casino on schedule.
Last week Bluhm told KDKA Money Editor Jon Delano, "We're going to deliver this thing, if we get it approved in the next week and move forward, this thing will open very close to when it was originally planned."
"On July 30th, the contractors have a right, if the deal isn't moving along, to not honor their fixed contract price."
In fact, they can cancel their deal with Barden and force PITG Gaming into bankruptcy.
Last week, general contractor Dan Keating warned that such an action would destroy the finances behind Bluhm's proposal.
"I'm very concerned that if someone were to exercise that right, it would kill their numbers," Keating told a Senate hearing in Harrisburg.
Today, Ravenstahl said starting all over would mean significant delay.
"If the slots license would be revoked and reissued then we're looking at one, two, three, maybe four years for the reissuance and that process to take place."
Onorato said the Board must do its job to check out Bluhm and his partners -- but must act quickly.
"We're also going to do everything we can to keep the pressure on from our side that we want this resolved. we want it resolved with somebody that has the financial wherewithal that's going to meet all the commitments that were promised."
So when might the gaming control board meet?
Tonight, officials tell KDKA Money Editor Jon Delano that no hearing is likely this week, perhaps next week at the earliest.
Whenever they do meet, Bluhm and Barden will have the chance to persuade the board to support the license change -- and Onorato and Ravenstahl will also get a chance to speak, too.
There's no word yet on what Barden's creditors will do.
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