KDKA Investigators

Concerns Remain Over Majestic Star Construction

PITTSBURGH (KDKA) ― Work on the Majestic Star has stopped -- and an unwelcome silence surrounds the barren beams and idle cranes.

But Governor Ed Rendell believes the stoppage is only a bump in the road.

"I do believe that they'll finish and they'll finish on track. I mean if you go by the site, you know, it's rising and I think it'll get done," he said.

And Don Barden's PITG gaming is hopeful that work will resume -- perhaps as early as next week.
 
That's if they can get the state Gaming Control Board to approve the addition of two major new investors in the casino at the board's meeting in Harrisburg on Thursday.

Barden's people say the new cash infusion will be enough to pay construction workers and have the casino up and running by next summer, and Rendell says the investors are good for the cash.

"They're well-funded and I think they'll inject the equity into this that's necessary for it to go forward at a rapid pace," Rendell said.

Chief among those investors is Neil Bluhm -- a billionaire from Chicago and the founder and principal owner of Walton Street Capital -- which has major real estate holdings throughout the country.

Bluhm has been approved by the state gaming board to build this one in Philadelphia -- although neighborhood opposition has thus far thwarted his efforts. Under state the gaming law is permitted to own up to a third of another casino.

Also in the deal is Dean Adler of the Lubert-Adler Real Estate Trust -- another major real estate player in the county also with holdings nationwide.

But even with the new investors the Majestic Star will be lacking some of the amenities initially promised.

"We're very concerned about the elimination of the docking areas, a 1,000-seat amphitheater that was promised as part of the project and a series of accessible rampways and pathways," Lisa Schroeder, from Riverlife Task Force, said.

Rendell says what's most important is that the building itself get back on track.

"Long-term I'm concerned about the amenities. I'm not concerned about whether there's an amphitheater there the day the casino opens," Rendell said.

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