Interesting Note from Molinari on IoC Bid...

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Interesting Note from Molinari on IoC Bid...

Postby Stoosh on Fri Mar 03, 2006 8:53 am

In today's Q&A, first question...

"There is something else that has been largely unreported and overlooked: Isle of Capri's deal with the Penguins calls for it to turn over all $290 million within 90 days of the Penguins' group being awarded the license. That means there will be no debt service on the building, and that's huge, because it pretty much guarantees nothing could derail an arena project."

This makes the comments Abe Naparstek made in last night's interview with Benz and Madden seem even more uninformed. He was clearly unaware of the fact that IoC was paying for the arena costs up front (he seemed to be arguing that IoC was paying for the arena out of slots revenues). Molinari proves here that Naparstek was grossly uninformed.

Some more interesting stuff...

"Gaming Control Board spokesman Nick Hays told Mark Belko of the Post-Gazette recently that three primary factors will be considered when awarding the license: 1) Whether a bidder is qualified to operate a casino, has a clean criminal record, has run a business properly and is current on taxes; 2) Whether the bidder has the financial wherewithal to operate a casino; and 3) How customer-friendly a facility would be, with issues such as access falling under that umbrella. Diversity and public reaction also will be factored in."

So when it comes down to it, it's no wonder that Naparstek could do nothing but rely on 1) Harrah's size and reputation as the biggest casino company in America and 2) the alleged $117M more per year in state and local tax revenue that FC/Harrah's will bring to the area as answers for every question Madden and Benz threw at him last night. And Madden & Benz did a pretty nice job shooting holes in the latter part of that in last night's interview.
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Postby Jamie on Fri Mar 03, 2006 11:28 am

Harrahs can not compete with the IOC plan. And ABe and friends know it. They have to rely on false revenue generation numbers to even be in this thing at this point. Well the false numbers and the politicians they have in thrir pocket. But the politician thing might be weakening as the public is growing more and more educated on the current events. I think the politico's are feeding Harrha's as to what line to take so to speak, in the media.
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Postby DelPen on Fri Mar 03, 2006 12:34 pm

I had no idea that IoC are going to front the money to start building the arena ASAP. So the timeline is, hopefully, the Pens are locked in the Igloo for one more year but can extend for one more year if they chose. So if the slots get awarded before next spring then a new arena could be completed for the opening of the 2008-2009 season?
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Postby Stoosh on Fri Mar 03, 2006 1:33 pm

Del,

I think you're dead on with the timetable. If the slots are awarded by Dec of 2006, the entire $290M will have to be made available no later than March of 2007. That would require them to renew the Mellon Arena lease for at least one more year (the 2007-08 season) and possibly two (they'd have to add another option year for the 08-09 season, but with the funding guaranteed and the construction ongoing, that wouldn't be much of a problem at all). So at the VERY latest, the new building would open in the 2009-10 season.

Second, with that 90-day availability clause written into their contract, they could theoretically break ground on the new arena the day after the license is awarded.
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