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Hearing set on casino payment for arena construction
Thursday, July 02, 2009

The state Gaming Control Board has scheduled a hearing July 15 in an effort to resolve a dispute between the Rivers Casino and the city-Allegheny County Sports & Exhibition Authority over when the North Shore slots parlor is to start paying its share of the construction costs for the new hockey arena.

The SEA wants the casino to begin making its payments -- $7.5 million a year for 30 years -- on Sept. 15, little more than a month after the gambling venue opens, Rivers spokesman Dan Fee said.

The casino's ownership group, on the other hand, says it was told the payments would not start until Sept. 15, 2010, at the earliest. Mr. Fee said those discussions occurred last year and led to the Rivers' rescue of the project after Don Barden was unable to secure permanent financing.

Mr. Fee added that the casino now hopes to move back the date to Oct. 25, 2009, as part of negotiations with the SEA. But in return, Rivers officials want assurances that they would receive "reasonable relief if the Commonwealth increases the gaming tax rate or authorizes additional casino licenses within our competitive market."

In the case of an increase in the tax rate, the casino would expect to see a reduction in its $7.5 million annual contribution, Mr. Fee said.

"We make a number of decisions based on our ability to operate a world-class entertainment facility. If, through circumstances beyond our control, that ability is changed, we would hope they would recognize that, work with us," he said.

If the state licenses another casino in Pittsburgh, Mr. Fee said, Rivers officials would expect that entity to share in the obligation to fund the arena since the Rivers' share of the market presumably would diminish.

The gaming board hopes the casino and the SEA will be able to resolve the issue before the hearing, spokesman Doug Harbach said.

First published on July 2, 2009 at 2:03 pm
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