Question About the Pens and Plan B

[Draftnik]

Is the gaming board even allowed to negotiate with applicants? If Forest City receives the license, they would not have any incentive to just offer money for a new casino out of sheer kindness.

The gaming board can do what they want. They can award licenses on the condition that X Group does Y action. That is why the Station Square guy came out and said they would be willing to consider $$$ for a new arena.

[Stoosh]

"If Rendell opens up the State purse strings as he has intimated an arena Plan B deal could come together quite quickly."

Draftnik,

I could be wrong about this, but I believe the funding plan for Nationwide Arena in Columbus came together less than four weeks after a public funding for the building was voted down.

The week that this whole arena issue really broke - back when Lemieux made his initial "It might be too late" comments - Savran had Frank LaGrotta as a guest on his show.

http://www.legis.state.pa.us/cfdocs/leg ... tnumber=10

LaGrotta is a Democratic Rep. from Ellwood City who chairs the Tourism and Recreational Development Committee, and he outlined a financing plan very, very similar to the one that you mentioned. The $90M from the state is available, but in order to get it, they need to secure enough additional financing to demonstrate that the addition of the $90M would go towards the substantial completion of the project. If they get that funding, the $90M could be released, along with some bonds, to cover the balance of the funding needed.

It's a long way to October or November and a lot of stuff has yet to happen. Sometimes, things need to go right down to the eleventh hour to get people to move, and I'm not sure we're quite there yet.

[Draftnik]

The issue or problem for Plan B and getting behind the scenes discussion is the Pens making the dumb decision to sign an agreement not to negotiate for another means for an arena.

Why would IoC offer to build the Pens a new arena if they were not exclusive partners? The Pens are the fulcrum for getting the City a new arena, so it makes no sense for IoC to allow the Pens to negotiate with other parties on an arena and undermine the key differentiator of their bid.

[dboss]

The issue or problem for Plan B and getting behind the scenes discussion is the Pens making the dumb decision to sign an agreement not to negotiate for another means for an arena.

This has to be one of the most uninformed statements EVER. Its not like the Pens had any other options for a new arena, so why not sign the agreement. They have been trying for 7 years for the elected officials to come up with a plan and have received nothing but broken promises in return.

[PensFanBryan]

because this is already plan Z... Theyve had a plan in place since Mario Lemeiux took ownership of the team.

[KCHockey]

KC has decaying roads and a corrupt education system, too.

Yet, we are paying for the new arena through a hotel/rental car tax. PGH could do the same. Then, it's not technically taxpayer $$, rather $$ from those who visit the city.

Forgive me for being an uninformed non-PGH resident, but why would Forest City want to contribute money to an arena that would, most likely, not even be near their development? If the Gaming Control Board told them they had to, wouldn't they fight it, causing the Pens to be in limbo even longer?

Isn't Station Square on the other side of the river and not necessarily easily accessible from the Lower Hill District?

[Draftnik]

Forgive me for being an uninformed non-PGH resident, but why would Forest City want to contribute money to an arena that would, most likely, not even be near their development? If the Gaming Control Board told them they had to, wouldn't they fight it, causing the Pens to be in limbo even longer?

Isle of Capri has established a baseline value of $340M for the slots license. $50 million for the license and $290M for the arena. The slots license would go for much more than $50M in an open auction, that is why IoC can "give" the city/Pens a $290M arena. Forest City could chip in $100M-$150M on a new arena because they still would be getting the slots license at an incredibly discounted price due to PA's decision to only charge $50M and not bid the licenses out.

[dboss]

KC has decaying roads and a corrupt education system, too.

Yet, we are paying for the new arena through a hotel/rental car tax. PGH could do the same. Then, it's not technically taxpayer $$, rather $$ from those who visit the city.

Forgive me for being an uninformed non-PGH resident, but why would Forest City want to contribute money to an arena that would, most likely, not even be near their development? If the Gaming Control Board told them they had to, wouldn't they fight it, causing the Pens to be in limbo even longer?

Isn't Station Square on the other side of the river and not necessarily easily accessible from the Lower Hill District?

Correct, but one of the stipulations in receiving a slots license is to provide a giveback to the community. If the gaming board asks them for funding for a new arena and they decline, the gaming board could potentially give the license to Isle of Capri.

[spi]

Our only hope for a "Plan B" as Rendell calls it, is if Marios group has not sold the team yet. If the Lemieux group still owns the team when The Gaming board awards Harrahs the license, then they could sign onto another plan

BUT


As soon as someone buys the team, that is essentially, the last step before they officially move. With the final step being the decision of who gets the license. Hopefully Mario does not pull the trigger to fast on the sale but I could see one of these gazillionaires take a risk that they do not get the license they will have their coveted franchise to move. Billionaires are risk takers, that is how they got rich. Heres to hoping Mario does not sign the dotted line until much later.

[Ron`]

I suspect we will see the sale of the Pens occur before the slots license is awarded. Then once the Isle is the loser, the new owner will bolt Pittsburgh as fast as he can.