Jun 26, 2008 11:59 pm US/Eastern
Officials Worry Over Possible Halt On Casino Work
PITTSBURGH (KDKA) ―
Pittsburgh taxpayers have a lot to lose if construction of the Majestic Star Casino on the North Shore comes to a halt.
Contractors are now threatening to walk off the job if developer Don Barden can't come up with a $10 million payment by Monday.
The steel girders rising on the North Shore bring with them the promise of property tax relief and a lot more for taxpayers in Pittsburgh. However, with fears that the project could be halted on Monday, politicians are nervous.
"We have an arena deal that's relying on funding from the casino. Our operating budget is balanced in the out years with gaming revenue. It's in everybody's interest to make sure that this happens," said Pittsburgh Mayor Luke Ravenstahl.
"There might be a real issue here. There is no payment happening," said Allegheny County Chief Executive Dan Onorato. "Question is, how long is it? Is it curable?"
Officials say they are worried because beginning next May, Barden's casino is supposed to pay out $10 million a year to the city as well as another $7.5 million a year to pay for a new arena.
But if Barden can't come up with $10 million by Monday, the contractors may walk off the job and put the gambling money on hold.
Mayor Ravenstahl says he is continuing to speak with Barden, but he isn't sure what's going to happen.
"I know that's something he'll be working very hard to achieve," said Ravenstahl.
In the meantime, members of the Pennsylvania Gaming Board, the group who gave Barden his casino license, toured the construction site Thursday. They put an optimistic spin on things and they're still betting on Barden.
"There are some very serious negotiations and we're optimistic about this Pittsburgh facility opening on time," said Judge Mary Collins, Chairwoman of the Pennsylvania Gaming Board.
"You wouldn't see as much activity as you see if there were people concerned about their paychecks," said Sanford Rivers, Commissioner of the Pennsylvania Gaming Board.
A spokesman for Barden has said they will make the approaching deadline.
Stay with KDKA for the latest on this developing story.
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