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Officials Support Bluhm's Proposal For Casino

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Aug 13, 2008 6:28 pm US/Eastern

Officials Support Bluhm's Proposal For Casino

Reporting
Andy Sheehan
PITTSBURGH (KDKA) ― Chicago billionaire Neil Bluhm says if he gets approval to take over Pittsburgh's slots casino, work could resume on Monday and if he doesn't, the project will go bankrupt.

Bluhm was in Pittsburgh on the eve of another meeting of the State Gaming Control Board to consider his proposal to take majority ownership of the proposed Majestic Star casino from cash-strapped Don Barden.

Along with the threat of bankruptcy, Bluhm also pushed back the earliest opening of the casino to next August.

When Bluhm meets with the board in Harrisburg, he'll be armed with the full support of Pittsburgh Mayor Luke Ravenstahl and Allegheny County Executive Dan Onorato.

Bluhm met with them at City Hall for a lunch hour meeting. The three emerged about an hour later and presented a unified front saying they all want to get Pittsburgh's casino moving forward again.

The gaming board still needs to approve a shift in ownership from Barden to Bluhm's Walton Street Capital Investment Fund.

But the board will also get an earful from critics like State Sen. Jim Ferlo who has cried foul, accusing Bluhm and the government bigwigs of orchestrating an insider deal something Bluhm denies.

"We believe that this is not an inside job of any sort. People came to us because the project was in financial trouble," Bluhm said.

And Bluhm certainly has deep pockets and say he's increased his cash or equity in the project from $120 million to $200 million - no mean feat considering that lesser investors would have to borrow that kind of money in a very tight credit market.

Bluhm says citizens and government leaders can also be confident that work will continue on the city's multi-purpose arena, guaranteeing Barden's original commitment of $7.5 million a year for that project.

If he isn't approved, Bluhm predicted the worst.

"I think this project will go into bankruptcy. There will be long period of litigation. This casino won't be built for a long period of time," he said.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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