KDKA revels Rendell Plan

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Postby Draftnik on Fri Mar 31, 2006 11:06 pm

This looks like very good news:

http://www.post-gazette.com/pg/06090/678324-61.stm

"The borrowing would be paid off over 30 years with annual contributions of $7.5 million from whoever gets Pittsburgh's casino, $7 million from a slots-backed state development fund, $2.9 million in rent from the Penguins and $1.2 million from the sale of arena naming rights."


If the Pens get full control of all revenue streams which should be the case since Rendell claims he built his plan from the Pens 2003 plan then this is a very sweet deal for the Pens. It basically would cost them $1M more per season than the IoC deal since the $2.9M in Rendell's plan is rent and the Pens are paying $3M per year to lease the new arena from the SEA in the IoC plan.
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Postby cs6687 on Fri Mar 31, 2006 11:33 pm

As good as it might sound, this plan is a ploy by Fast Eddie. All he wants is the Pens to commit to it even slightly, so that leverage can be gained by Harrah's.
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Postby Draftnik on Fri Mar 31, 2006 11:52 pm

cs6687 wrote:As good as it might sound, this plan is a ploy by Fast Eddie. All he wants is the Pens to commit to it even slightly, so that leverage can be gained by Harrah's.


If Rendell puts this plan into a binding contract that becomes enforceable if/when IoC loses I could care less if Harrah's wins the license. I'm fine with Harrah's paying ~ $7M per year to shut up IoC backers and complete their inside deal. Its all about keeping the Pens in Pittsburgh from my POV. Ken Sawyer isn't an idiot and for all we know the IoC plan was a stalking horse to force Rendell/Onorato/O'Connor to strike a deal. Given the long odds of IoC winning (even with the Pens support) relative to Harrah's it isn't implausible.
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Postby bill from turtle creek on Sat Apr 01, 2006 7:35 am

Funny that you mention the stalking horse idea. Given the way some of these things are playing out, I've wondered about that myself. If that is indeed the case, it has been put into place flawlessly.

The one thing I've always wondered about Capri is why there is no public face, other than the Pens, associated with it. You'd think that in their underdog role, they'd have somebody front and center.
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Postby Draftnik on Sat Apr 01, 2006 5:10 pm

Chris wrote:Palatable how? The pens are being asked to pay 120 million $ over 30 years. 2.9 million a year plus 1.1 million from naming rights and seat license (they dont have enough of a season ticket base for people to consider seat licensing) Tell me, if you owned the Pens and had cities chomping at the bit to get you to come there, where you wouldnt have to pay a cent aside from taxes and moving vans, would you do so? As a business owner? I think not.


The Pens WILL BE PAYING $90M ($3M PER YEAR FOR 30 YEARS) in lease payments to the SEA under the IoC plan.

The Rendell plan calls for $1M more per year plus $8M upfront. It isn't a substantial amount of $$$ in relative terms to the overall project and the revenue streams full control of the new arena would generate for the Pens.
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Postby bill from turtle creek on Sat Apr 01, 2006 5:49 pm

So given that, the only difference in the deals is the upfront money. If Eddie and Danny are desperate enough to solve this whole problem, the Pens could probably ask for some RAD money to offset that. There's no RAD money in the current offer, though it was thrown out verbally as a possibility before; that may well be the carrot that was held back to be used to finalize things. Let's hope.
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Postby Draftnik on Sat Apr 01, 2006 6:42 pm

bill from turtle creek wrote:So given that, the only difference in the deals is the upfront money. If Eddie and Danny are desperate enough to solve this whole problem, the Pens could probably ask for some RAD money to offset that. There's no RAD money in the current offer, though it was thrown out verbally as a possibility before; that may well be the carrot that was held back to be used to finalize things. Let's hope.


Exactly. Rendell even said he is willing to negotiate off this offer. The Pens could push for a better deal. It is amazing how far this process has come in so little time from the IoC offer in late December.
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Postby bill from turtle creek on Sat Apr 01, 2006 7:23 pm

It didn't take long, for sure, from the time Lemieux started threatening in November up to now. Just goes to show you what a desperate politician can accomplish if he's forced to.

Well, I fully expect FC to get their bid, and it's still unlikely that Swann will win the election, but the main goal always was to get the arena.

Even if Swann loses, they should name an alley around the new arena after him. If not for him, this whole thing may have turned out much differently.

I don't want to be overconfident about the eventual outcome, but it does look very very promising.
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