[themaguffin]

Just heard the announcement. I'm sure details will follow soon....

[Flash]

This is the North Shore casino.

Isle of Capri/Penguins lose. Hmm...wonder what happens next?

[DBR96A]

Penguins probably get moved to some town that doesn't give a rat's ass about hockey, that's what.

[Evergrey]

an arena will be built regardless... Isle of Capri's "privately funded" casino was just taxes through the back door... I am hoping, however, that Majestic Star can create an ambitious Lower Hill redevelopment plan like Isle of Capri conceptualized...

perhaps the North Shore location is better as well... sure people will complain about it being so close to the Carnegie Science Center and Heinz Field... but the North Shore is already an entertainment destination... destined to become tackier with the Cordish "Live!" development...

Majestic Star promised the least... so we won't have to be disappointed when all these fantastic plans promised by the casinos never come to fruition...



Post-Gazette website is crashing... so here's the Trib's take...

http://www.pittsburghlive.com/x/pittsburghtrib/s_485047.html

And the winner is ... Majestic Star

By Andrew Conte
TRIBUNE-REVIEW
Wednesday, December 20, 2006


HARRISBURG -- Detroit businessman Don Barden overcame the longest of odds today to win the license for a slots parlor on Pittsburgh's North Shore.
The state Gaming Control Board awarded the license to Barden for a Majestic Star Casino. He plans to open a permanent slots parlor west of the Carnegie Science Center by March 2008.

The casino award throws the Penguins hockey franchise into some uncertainty. Majestic Star has offered to help pay for an arena with $7.5 million a year for 30 years, but the state and team would have to contribute as well.

The other two applicants have 30 days to file an appeal with the state Supreme Court.





St. Louis-based Isle of Capri Casinos had wanted to open an Uptown casino. It had offered to pay $290 million for an arena if it won the license.

Cleveland-based Forest City Enterprises wanted to open a casino at Station Square, which would have been operated by Las Vegas-based Harrah's Entertainment.

Barden, whose birthday is today, had the only minority-controlled casino proposal. He has offered investment opportunities to 17 people, including singer Smokey Robinson and the mother of former Steelers running back Jerome Bettis.

As part of his proposal, Barden has offered to help redevelop the Mellon Arena site and pay $1 million a year for three years to the North Side Leadership Conference.

Several financial analysts had said Barden had the biggest challenge to overcome in winning the license. Majestic Star does not have a players' club as large as Harrah's, and it would not fully pay for an arena.

Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato have said they are willing to sit down with the Penguins as soon as Thursday to hash out an agreement that would build an arena and keep the team in Pittsburgh.

Under a Plan B proposed by Gov. Ed Rendell, Majestic Star would pay toward the arena while the state paid $7 million a year, and the Penguins paid $8.5 million upfront and $2.9 million a year, while forgoing $1.1 million a year in naming rights.


Andrew Conte can be reached at aconte@tribweb.com or (412) 765-2312.

[Guardian]

Barden's group slipped past the bigger players to win
Wednesday, December 20, 2006

By Bill Toland, Pittsburgh Post-Gazette
http://www.post-gazette.com/pg/06354/747582-336.stm

An artist's conception of PITG Gaming's North Side casino development. (Click on link to see this)


Initially viewed as the long shot in this three-horse race, Detroit businessman Don Barden emerged from the pack today by winning Pittsburgh's lone casino license and earning the rights to build a slots parlor on the North Shore.

The Pennsylvania Gaming Control Board voted in Harrisburg today in favor of Mr. Barden's PITG Gaming, the local incarnation of his Majestic Star casino chain, which bested its two better-known competitors: Isle of Capri Casinos, which had teamed with the Pittsburgh Penguins to propose a casino and new arena in the Lower Hill, and Harrah's Entertainment, which partnered with Cleveland's Forest City Enterprises on a Station Square casino plan.

Harrah's had the biggest industry name, and Isle of Capri was the choice of thousands of sports fans because of its ties to the hockey franchise, but in the end it was Mr. Barden who had the best proposal, as judged by the gaming board.

While Harrah's and Isle of Capri made their splashes late last year, Mr. Barden waited until April of this year to fully unveil his plan, doing so in front of the gaming board. He recruited retired Pittsburgh Steeler Jerome Bettis to front the proposal, and announced that his parents, Johnnie and Gladys Bettis, neighbors to Mr. Barden, would be investors in the casino, as would Motown singer Smokey Robinson. (Johnnie Bettis has since died).

At the same meeting, Mr. Barden also pledged $7.5 million a year for 30 years to support construction of a new arena for the Penguins, taking away some of the leverage that had been held by Isle of Capri to that point. Also in counterpoint to the Isle of Capri plan, he offered $350 million for investment in the Lower Hill District.

PITG won't build a temporary casino, as Isle of Capri and Harrah's would have, instead opting to concentrate full bore on the permanent, $450 million facility between the Carnegie Science Center and the West End Bridge. Plans call for the 400,000 square-foot casino to house a cylindrical glass atrium, four restaurants, three lounges, bars, shops and, of course, rows and rows of slot machines. Construction should take 14 months, meaning it will be open by spring 2008, although the gaming board itself has questioned that ambitious timetable.


Matt Freed, Post-Gazette
Mr. Barden's plan was more palatable on a number of fronts than either the Hill or Station Square casino proposals. The traffic jams that may have come along with the Station Square casino won't be as much of a problem on the North Shore, except before and after Pirates and Steelers games. And by offering to spend development money on the Lower Hill, without putting a casino there, Mr. Barden extinguished the main complaint of Isle of Capri opponents -- that a casino so close to the Hill would spell disaster for the neighborhood and its residents.

Still, Mr. Barden had two high-profile opponents, namely the Steelers and the Pirates, neither of which favored the casino or wanted it to interfere with their own North Shore development plans.

But his legislative allies -- namely, Rep. Jake Wheatley and presumptive House Speaker H. William DeWeese -- may have been enough to offset the concerns of the two sports franchises. Both were guests of Mr. Barden at Super Bowl XL, which was played in Detroit in February. And Mr. Barden, who is black, is also the only minority applicant in the state, which was considered an advantage because the state wanted to include minority-owned businesses in its new casino enterprise.

Even though Mr. Barden has committed $7.5 million a year to a new arena, the issue isn't exactly settled. The Pittsburgh Penguins hockey franchise had hitched its wagon to Isle of Capri and its promise of $290 million in arena funding. Now the franchise, if it is to stay in Pittsburgh, will have to negotiate the terms of a "Plan B" financing arrangement. Jim Balsillie, the Canadian businessman who agreed to buy the Penguins then backed out at the last minute, seemed agreeable to "Plan B," but new owners, whoever they are, might not be as eager to contribute their own funds to a new arena.

[themaguffin]

The Pens won't move. This is why Basilly bolted from his deal with the Pens.

[Evergrey]

Barden's decision to not build a temporary casino was probably a significant factor... PA did not want big ugly sheds standing around for years like has happened in Detroit.

http://www.post-gazette.com/images4/20061220majestic_drawing_brk_450.jpg

http://www.post-gazette.com/images4/20060409mfbarden_450.jpg

http://www.post-gazette.com/images4/20060409barden_locater_160.gif

The winner: The Majestic Star is proposed as a $450 million facility between the Carnegie Science Center and the West End Bridge.
Details: Plans call for the 400,000 square-foot casino to house a cylindrical glass atrium, four restaurants, three lounges, bars, shops and, of course, rows and rows of slot machines.
Work: Construction should take 14 months, meaning it will be open by spring 2008

[Evergrey]

There are some good points in that PG article... I had forgotten that Barden offered a $350 million plan for the Lower Hill... which is probably about equivalent to what Isle of Capri offered (sans casino and arena)...

also... Majestic seems to have the best transportation access... and the comparatively isolated location will probably limit the negative effect the casino's restaurants have on local businesses...

[themaguffin]

This was another plus for me - that he wasn't going to throw up a couple walls and slots until the real thing is built.

[Evergrey]

well, the doom and gloom from the Penguins continues...

http://www.post-gazette.com/pg/06354/747594-100.stm

Penguins disappointed; officials pledge arena support
Wednesday, December 20, 2006

By Rich Lord, Pittsburgh Post-Gazette

The leaders of Allegheny County and the City of Pittsburgh today pledged to continue their efforts to build a new arena after the state gaming board rejected a proposal by the casino bidder favored by the Penguins.

The state board chose a proposal by PITG Gaming for a North Side parlor over a bid by Isle of Capri for a Hill District site. Isle of Capri had pledged $290 million toward arena construction and had an agreement with the Penguins.

PITG's Don Barden has agreed to provide $7.5 million a year for 30 years for an arena, and he has also pledged to help redevelop the Lower Hill District.

The Penguins issued a statement today congratulating Mr. Barden but saying, "obviously, we are very disappointed that the Isle of Capri was not awarded the slots license."

"Had Isle of Capri been selected, it would have ensured the long-term future of the Penguins in Pittsburgh and would have delivered a $1 billion development opportunity to the Lower Hill and Uptown," the statement continued.

"At this point, our franchise enters a period of uncertainty, with our lease at Mellon Arena set to expire this summer. We will re-evaluate all of our options before deciding on a course of action and making further comment."

Pittsburgh Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato said at a press conference today that they have already spoken to Mr. Barden and hope to arrange a meeting about his plans as soon as tomorrow.

Both said they understood he has reiterated his commitment to helping fund an arena and redevelop the Hill.

They also said they are still backing a new arena.

"Let me reach out to Mario here," said Mr. Onorato, referring to Mario Lemieux of the Penguins. "What the two of us are committing today is that we're going to be here under this plan and get (an arena) done."

"There's absolutely no doubt in my mind that we can get this deal done," Mr. Ravenstahl said, provided that the team is willing to negotiate."

Mr. Onorato said the choice of a North Side location shows the need for the Port Authority's North Shore Connector. Under the plan, which has drawn some criticism, the light rail line would be extended under the Allegheny River to the North Side.

The two officials pledged to put together a task force to study community impact and neighborhood issues that the casino might generate. They said it would include both neighborhood residents and professionals like traffic engineers.

It will probably eliminate further need for the city gaming task force created by former Mayor Tom Murphy. That group had said Isle of Capri was the best plan.

Mr. Ravenstahl had also backed Isle of Capri but Mr. Onorato never stated a preference.

[Evergrey]

"Had Isle of Capri been selected, it would have ensured the long-term future of the Penguins in Pittsburgh and would have delivered a $1 billion development opportunity to the Lower Hill and Uptown," the statement continued.





As stated previously, this is basically equivalent to Majestic's Lower Hill plan. The $1 billion Isle of Capri plan included the $290 million arena (which, let's be honest, is going to soar way above $300 million) and the approx. $300 million casino (which, let's be honest, is hardly a "development").


In addition, I'm glad that Onorato can validate the need for the North Shore Connector following this news. Maybe it can become the Casino Shuttle... quickly whisking the elderly from Bethel Park in and out of the casino.

[oreoman85]

I think the Penguins will get their arena. I read the news on phillyskyline.com. I really dont see them leaving, if theres a will theres a way.

[Evergrey]

There's a lot of interesting videos about the slots announcement at KDKA.

http://kdka.com/local/local_story_354113243.html

[themaguffin]

The doom and gloom from the Pens will continue as that is their script for support.

In any case, I have no doubts that an arena will be worked out as Onorato and Rendell have been moving along in case this happened. Again the arena aspect of the IOC deal sounds great, but when dig a little deeper, and look at everything, was it the best option. I don't think so. In fact I think the committee went with the most sound proposal and the city will still get an arena soon enough.

[Guardian]

http://news.yahoo.com/s/ap/20061220/ap_on_sp_ho_ne/hkn_penguins_sale_slots_4

Penguins' future in Pittsburgh in doubt By ALAN ROBINSON, AP Sports Writer
42 minutes ago

PITTSBURGH - The Penguins' future in Pittsburgh was in doubt following the state's rejection Wednesday of a slot-machine casino application by Isle of Capri Casinos, which had promised to build a $290-million arena if it got a license.

The Penguins ownership group, headed by Hall of Fame player Mario Lemieux, were discouraged by the outcome and said the franchise would begin weighing all options — including possible sale to owners who would move the two-time Stanley Cup champions.

The Isle of Capri rejection came only five days after wealthy Canadian businessman Jim Balsillie unexpectedly pulled out of his $175 million deal to buy the franchise, apparently because the NHL wanted him to commit to not moving the Penguins. Balsillie had been expected to close on the deal late last week.

"At this point, our franchise enters a period of uncertainty, with our lease at Mellon Arena set to expire this summer," chief executive officer Ken Sawyer said. "We will re-evaluate all of our options before deciding on a course of action and making further comment."

Even as city and county politicians held a news conference to announce they would immediately begin to finalize an alternate arena deal for the Penguins, NHL commissioner Gary Bettman warned that the Penguins' future is in doubt.

"The decision by the Gaming Commission was terrible news for the Penguins, their fans and the NHL," Bettman said in a statement. "The future of this franchise in Pittsburgh is uncertain and the Penguins now will have to explore all other options, including possible relocation. The NHL will support the Penguins in their endeavors."

After the decision was announced, the Penguins practiced at Mellon Arena, the 45-year-old building the team says must be replaced for it to remain viable in Pittsburgh.

The board voted unanimously to award the city's only slot-machine license to Detroit-based casino developer Don H. Barden's PITG Gaming. Barden's group proposes building a casino and entertainment development on the city's North Shore, near Heinz Field and PNC Park. Both the Steelers and Pirates were strongly opposed to his plan.

Barden had promised to contribute some money for a new arena over 30 years under a plan proposed by city and county officials that would include public funds. But that plan also calls for the Penguins to help pay for the facility.

"I am committed to what we said we were going to do," Barden said Wednesday. "We're going to fund $7.5 million a year for 30 years toward financing a new multipurpose arena."

He said he will meeting soon with Allegheny County Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl to get the process moving.

"It will be the largest of our operations and we're going to put a lot of attention on this project," Barden said. "We're going to get it going right away."Onorato and Ravenstahl all but promised the Penguins will get a new arena. A parcel of land near Mellon Arena has already been obtained for the arena, and officials said a groundbreaking ceremony could be held as early as next month if they can reach an agreement with the Penguins.

"There is absolutely no doubt in my mind we will get an arena done," Ravenstahl said.

[oreoman85]

So if the lease at Mellon is up in 6 months, can they still work something out so they play there for the start of next season? even if a new arena is u/c asap.

Either that, or ppl better get used to the Kansas City Penguins, or Houston Penguins. A match made in heaven. :maddown:

indirectly, some things the NHL would have to also consider is a little rearranging of the conferences/divisions if the Pens (which I hope not) get moved to KC (Central Div) or Houston (Pacific Div).

The Penguins leaving Pittsburgh is like basketball leaving New York.

[mrherodotus]

The whining and crying is mainly to put pressure on the politicos to get it done.

[PacificNW]

I hate to see the Penguins leave Pittsburgh but if they do I hope they relocate to Portland, Oregon. The Rose Garden is NHL ready!!!

[WZ1]

Hamilton is the most likley. The guy who pulled out will probably be allowed back in now if bettman is willing to let the team re-locate. Jim Baslille (the guy who pulled out) is a resident of Hamilton.

[themaguffin]

The Pens have the best local NHL TV ratings in the country. That isn't taken lightly,

[oreoman85]

Look at their team. Its a fuckin shame.

[Wheelingman04]

The Penquins may just leave Pittsburgh because under Plan B, the owner of the team has to use his own money to partially finance the arena. Why would he do that if he could move them to Kansas City, Houston, or Portand, Oregon for free where they already have beautiful new arenas ready?

[Evergrey]

http://www.post-gazette.com/pg/06355/747845-150.stm

Gene Collier: Penguins will get what they want, but not at desired price
But, in light of Isle of Capri's slot-license loss, local politicians will determine the cost
Thursday, December 21, 2006

Pittsburgh Post-Gazette

You didn't have to believe in omens to find it a bit odd that on the subway ride toward Mellon Arena yesterday, "I'm gettin' nuttin' for Christmas" seemed to be squawking in a continuous loop.

This was right at the top of zero hour, when the long-awaited, viciously anticipated casino licensing issue would finally be decided. Twenty minutes later, the Penguins had begun practice on the NHL's oldest living hockey pond, and at precisely 11:27 a.m., the franchise learned it was indeed getting nothing for Christmas.

(Look, it could be worse: You could be the Pirates or their fans -- they're getting Nuttings for Christmas.)

Oh yeah, mommy and daddy are mad, the NHL is mad, even the Rooneys and the NFL are mad, issuing two among the day-long flurry of official tight-lipped statements that included the always vaguely threatening "our options" pill.

Reached later in the day, Steelers president Art Rooney II explained the club's primary disappointment has to do with traffic, parking and infrastructure.

"Our intention is to try to remain involved in the process," Rooney said. "We've been disappointed because we think the decision gave little weight to local interests. We assume there will be an ongoing process in terms of the various approvals that are necessary, and we'll try to protect our interests and the interests of our fans, who need to get in and out of this place."

You'll notice he didn't say that with Isle of Capri not winning the casino license, the city is going straight to hell and the Steelers might just as well move to North Carolina with Bill and Kaye and Lindsay.

Predictably, the maddest bunch were and shall be, for a time, Penguins management and the club's loyal, vocal, emotional, and often enough paranoid fans, including those without media credentials.

When everyone calms down and the bile goes flat, I think you'll see an easily identifiable path now cleared from the huge speculative obstacle that was the licensing issue. By awarding Pittsburgh's sole casino license to the North Shore developer, the state's Gaming board did not put the Penguins on an ice flow and kick them down river.

The Penguins will get what they want, a new arena, at the site they want, adjacent to the old one, by the date they want, 2009. They just won't get it on the terms they want, which was to have Isle of Capri, one of the two losing bidders yesterday, pay for it.

"There's no doubt in my mind this will get done," said mayor Luke Ravenstahl. "If they are as committed as we are, the Penguins should never leave Pittsburgh."

Ravenstahl was standing next to county executive Dan Onorato in the lobby of the old Alcoa building on Sixth Avenue, where Onorato was trying to turn Plan B into Plan A, and Christmas shoppers along William Penn Place peered in from the sidewalk because two guys in dark suits and power ties in front of the TV lights is usually some kind of emergency.

Onorato said he was going straight upstairs to the Sports and Exposition Authority offices to phone the Penguins as soon as the lights went off, which he did.

They didn't answer.

"Let me reach out to Mario," Onorato said. "I know he's frustrated, saying he's waited [for politicians to get things done] for seven years. But I've only been county executive for three years, and Mayor Ravenstahl's only been here for several months. The mayor and I are going to make it clear we intend to remove the uncertainty."

"The sooner the Penguins are willing to sit down," the mayor said, "the sooner the uncertainty will go away."

Of all the official poses struck yesterday, the Penguins' actually seemed the most measured. Their statement, in lieu of the presumed news conference, was a beacon of diplomacy compared to the hysterical reaction of NHL commissioner Gary Bettman, who less than a week ago was so certain Pittsburgh had to be the home of the Penguins that prospective owner Jim Balsillie took his Blackberry and went home.

"The decision by the Gaming Commission was terrible news for the Penguins, their fans, and the NHL," read that statement. "The future of this franchise in Pittsburgh is uncertain, and the Penguins now will have to explore all other options, including possible relocation. The NHL will support the Penguins in their endeavors."

Put the gun down, Gary.

Just as war is the failure of diplomacy, state-sponsored gambling is the failure of public policy. If you've got to have it, you'd better make sure that its proven negative impacts are counterbalanced across the broadest possible landscape economically and socially.

It's a tremendously complicated urban-planning question for which a good faith answer was put forth yesterday, and there is undoubtedly room for the Penguins within the solution.

http://www.post-gazette.com/images4/20061221sm_mellon9_450.jpg

[Halovet]

Is it going to be owned by Detroit Business man Don Barden, Who owns The two Majestic Casino Boats in Gary,IN ? I hear he can really be trusted. don't be surprised if "Mr Majestic" doesn't put in a bid for the Pens himself. He LOVES the Redwings, and he's got enough loot. He could also put together a group of wealthy African Americans that may find it intriguing to have ownership an NHL team. After all, he is from "Hockeytown". There are a lot more Black Hockey fans than one might think.
http://www.reviewjournal.com/lvrj_home/2003/Feb-13-Thu-2003/photos/business.jpg

[Halovet]

Hamilton is the most likley. The guy who pulled out will probably be allowed back in now if bettman is willing to let the team re-locate. Jim Baslille (the guy who pulled out) is a resident of Hamilton.

Toronto and Buffalo won't like that one bit. Still, the "Golden Horshshoe" { Toronto, Buffalo, and Hamilton} has 6 million people. More than enough to support the three teams.

[themaguffin]

The Penquins may just leave Pittsburgh because under Plan B, the owner of the team has to use his own money to partially finance the arena. Why would he do that if he could move them to Kansas City, Houston, or Portand, Oregon for free where they already have beautiful new arenas ready?


The Penguins would have had to pay in the IOC bid for any cost over the $290 million check - and you better believe that a new arena will be well over $300 million. That's a lot of money that the Pens would likely pay, so the $4 million give or take that they will likely now pay isn't shocking.

Hamilton is the most likley. The guy who pulled out will probably be allowed back in now if bettman is willing to let the team re-locate. Jim Baslille (the guy who pulled out) is a resident of Hamilton.

Hamilton will not get the Penguins or any other team. And Bettman is just posturing to put pressure on the politicians. He's looking out for one of his teams, just as he was when speaking to Basilly.

[chiaroscuro]

The Penguins would have had to pay in the IOC bid for any cost over the $290 million check - and you better believe that a new arena will be well over $300 million. That's a lot of money that the Pens would likely pay, so the $4 million give or take that they will likely now pay isn't shocking.

Aren't you forgetting about the interest the Pens could reap from that $290 million? It was my understanding that IOC, within 90 days of winning the bid, would present the Pens ownership a check for $290 million to be used toward building a new arena. The interest earned on banking that amount of money (and considering scheduled payments they would have to make as construction progressed) could be in the tens of millions over the 2-3 years in would take to build the arena.

Additionally, the Pens, having financed the arena themselves, could theoretically sell the arena naming rights for another $2 million per year.

[oreoman85]

Any other city that this team goes to will be nothing like Pittsburgh, whether its KC or Houston, Portland or even Vegas.

[Evergrey]

now this article (mainly the title) sounds dire... but it's actually a good thing... because it's means the Penguins will finally work with local and state politicians on the arena issue since they are no longer binded by the Isle of Capri deal... and there is no chance of a Jim Balsille moving the Penguins to Nowhere, Ontario... if the Penguins move... it will be due to a complete failure on the arena issue... and current ownership will move them elsewhere...

http://www.post-gazette.com/pg/06355/747946-100.stm

Lemieux: Penguins will look at other cities
Thursday, December 21, 2006

By Dave Molinari, Pittsburgh Post-Gazette

Penguins majority owner Mario Lemieux today said the team is no longer for sale and will explore relocating to another city while trying to negotiate a deal for a new arena in Pittsburgh.

"Recent developments, including yesterday's decision by the [Pennsylvania Gaming Control Board], and the recent termination of the purchase agreement by Jim Balsillie have convinced us that it is time to take control of our own destiny. Accordingly, starting today, the team is off the market, and we will begin to explore relocation options in cities outside Pennsylvania," Lemieux said in a prepared statement. "After seven years of trying to work out a new arena deal exclusively in Pittsburgh, we need to take into consideration the long-term viability of the team and begin discussions with other cities that may be interested in NHL teams. As soon as we are no longer restricted by our agreement with Isle of Capri from negotiating an arena deal here, in the next few weeks, we will also begin discussions with local leaders about a viable Pittsburgh arena plan."

The gaming board on Wedenesday awarded Pittsburgh's only stand-alone slots parlor license to PITG Gaming LCC, which will build a casino on the North Side near the Carnegie Science Center. The Penguins had backed a plan by casino operator Isle of Capri, which pledged $290 million for a new arena.

[Guardian]

And the beat goes on....

http://www.post-gazette.com/pg/06355/747946-100.stm

Lemieux: Penguins will look at other cities
Thursday, December 21, 2006

By Dave Molinari, Pittsburgh Post-Gazette

Penguins majority owner Mario Lemieux today said the team is no longer for sale and will explore relocating to another city while trying to negotiate a deal for a new arena in Pittsburgh.

"Recent developments, including yesterday's decision by the [Pennsylvania Gaming Control Board], and the recent termination of the purchase agreement by Jim Balsillie have convinced us that it is time to take control of our own destiny. Accordingly, starting today, the team is off the market, and we will begin to explore relocation options in cities outside Pennsylvania," Lemieux said in a prepared statement. "After seven years of trying to work out a new arena deal exclusively in Pittsburgh, we need to take into consideration the long-term viability of the team and begin discussions with other cities that may be interested in NHL teams. As soon as we are no longer restricted by our agreement with Isle of Capri from negotiating an arena deal here, in the next few weeks, we will also begin discussions with local leaders about a viable Pittsburgh arena plan."

The gaming board on Wedenesday awarded Pittsburgh's only stand-alone slots parlor license to PITG Gaming LCC, which will build a casino on the North Side near the Carnegie Science Center. The Penguins had backed a plan by casino operator Isle of Capri, which pledged $290 million for a new arena.

[Evergrey]

didn't I just post that?

[Evergrey]

http://www.post-gazette.com/pg/06356/748218-53.stm

Sports and Exhibition board making way for new arena
Friday, December 22, 2006

By Mark Belko, Pittsburgh Post-Gazette



With the casino license awarded, the city-Allegheny County Sports & Exhibition Authority stepped up work toward the construction of a new arena yesterday, even as the Penguins' future in Pittsburgh remained uncertain.

The authority board authorized $1.7 million in contracts to clear asbestos from buildings to be demolished to make way for a new arena and to prevent work stoppages during construction.

The authority hopes to begin asbestos abatement on the former St. Francis Central Hospital and 12 other buildings in the Fifth and Centre avenue corridors by early January, Executive Director Mary Conturo said.

It plans to start demolishing buildings a month later, with the construction of the new arena scheduled to start in September. The goal is to have the building finished by fall 2009, the same timetable advanced by the Penguins. Money for the site work and demolition is coming through a $26.5 million advance from the state.

The sports authority intends to finance the construction through the Gov. Ed Rendell-crafted Plan B. It calls for $7.5 million a year for 30 years to come from winning casino bidder PITG Gaming LLC headed by businessman Don Barden, $7 million a year for 30 years from a slots-backed state economic development fund, and $4 million a year from the Penguins, plus $8.5 million up front.

Plan B is contingent on getting an agreement with the team, whose Mellon Arena lease expires at the end of June. The Penguins have not endorsed Plan B and pinned their hopes for a new arena on Isle of Capri winning the city slots license. The Isle had pledged $290 million toward construction.

With Isle of Capri's loss, Penguins owner Mario Lemieux said yesterday the team would begin discussions with other cities about relocating. However, he added he planned to begin discussions soon with leaders about a "viable Pittsburgh arena plan."

The sports authority still must acquire St. Francis Central Hospital from the Penguins, who acquired it for $8 million with an eye toward using it for an arena.

The authority board also took several steps yesterday toward a no-strike agreement for arena construction. Those actions included the hiring of Hill International Inc., which also worked on no-strike agreements for the construction of PNC Park, Heinz Field and the David L. Lawrence Convention Center.

Other than the hospital, the sports authority has acquired all of the property it needs for the arena. The new facility would be built between Fifth and Centre avenues, across the street from Mellon Arena.

The two largest contracts awarded yesterday, for asbestos removal, went to Abmech for $1.5 million and Precision Environmental for $148,800.

In a separate action yesterday, the board approved a 2007 budget of $12.6 million. It includes a onetime allocation of $2 million from the Allegheny Regional Asset District to help cover a convention center deficit. In future years, the deficit is expected to be covered by slots revenue.


--------------------------------------------------------------------------------

(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

[Evergrey]

http://www.post-gazette.com/pg/06356/748229-194.stm

Smizik: Efforts should go into a fair Plan B
Friday, December 22, 2006

By Bob Smizik, Pittsburgh Post-Gazette

Let me see if I have this right: After their entry fails to win the slots license, the Penguins and the NHL, a league that is threatening to disappear from the major sports scene, are not so subtly threatening to relocate a franchise that after finishing in last place for four consecutive seasons and while facing one of the worst teams in the league on a Tuesday night in December draws a packed house of more than 17,000 in a decrepit facility?

The threat rings just about as true as "the fix is in," which was the pathetically desperate and oft-repeated attempt by the MFOM (Media Friends of Mario) to discredit the entire slots licensing process.

It didn't work. Their shameless attempt to smear politicians that were in no way connected with the process also didn't work.

The fix was not in. The least politically connected of the three applicants for the license turned out to be the winner.

Coming out on top was outsider Don Barden of Detroit, who neither had the political connections of the Forest City group -- who the liars said would be the recipient of the fix -- or of the Isle of Capri, which had the backing of the Penguins, their legendary and universally admired owner Mario Lemieux and who were fronted by a superb lobbyist, the very politically connected David Morehouse.

Barden won because of old-fashioned values, not because of 21st century smear tactics. He won because he had the best plan in the best location. Yes, better than the Isle of Capri's plan, which promised $290 million toward a badly needed new arena.

At a news conference Monday, which was viewed as a final attempt to sway the Gaming Control Board, the seven-person panel that awarded the license, Lemieux wondered aloud how it would be possible to turn down $290 million of private money for a public building.

The answer came Wednesday when it was acknowledged that the board's own consultants determined that Barden's plan would produce the most revenue for the state. That's a point that never sunk in with many, mostly because the Isle of Capri and MFOM tried to make this about what was best for the Penguins. In the end, truth won. It wasn't what was best for the Penguins, it is what's best for the state and the region.

Barden's North Shore plan clearly was the best location, away from neighborhoods, with plenty of room to build and nearby access to many major highways. The design was superb and the plan, according to the board, the best. Not even the out-of-character whining from the Pirates and Steelers can alter those facts.

With the slots license determined, all efforts must be put forward to develop a Plan B that will be fair to the Penguins and keep them here. That's the job of Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato. Gov. Ed Rendell, who was relentlessly trashed by MFOM, also will help. The treatment of Rendell by MFOM has been beyond reason. He was crucified for remaining impartial in the licensing process, although by the very nature of his position -- he appointed three of the board members -- he had to be neutral. It was typical of the smear tactics of Isle of Capri supporters.

Plan B took on new urgency yesterday when Lemieux, in a written statement, said, "... starting today, the team is off the market and we will begin to explore relocation options in cities outside Pennsylvania." He also said in the immediate future the team would "begin discussions with local leaders about a viable Pittsburgh arena plan."

It certainly is within Lemieux's right to consider all options. When he took over the team in 1999, rescuing it from bankruptcy, he never expected to be connected with it this long. He wants his money and he wants to get out. He deserves both of his wishes.

Under the current Plan B, the licensing winner puts up $7.5 million for 30 years, another $7 million comes out of the state's slots fund annually and the Penguins are expected to contribute $4 million a year after an upfront contribution of $8.5 million.

The Penguins' portion is negotiable and will be even more so with the leverage Lemieux has. The Penguins should be expected to put up about as much for the arena as the Pirates did for PNC Park, which was about 18 percent. If Lemieux can whittle that lower, more power to him.

Although relocation of the franchise is not likely, nor is it out of the question, attempting to drive too hard of a deal with Penguins ownership on Plan B could force the team out of town.

A primary option is believed to be Kansas City, which has a new arena and is awaiting a tenant. Kansas City also has something else. It is the only city in America that has had and lost teams in the NHL, NBA and MLB. NHL commissioner Gary Bettman should think long and hard before he gives a city with such a track record a franchise and even longer and harder before he considers moving the Penguins, where ardent support is proven.

The ugly process of awarding the slots license is behind us. There needs to be a unity of effort by all parties to deliver a fair Plan B to the Penguins and keep the franchise where it belongs.


--------------------------------------------------------------------------------
(Bob Smizik can be reached at bsmizik@post-gazette.com or 412-263-1468. )

[Evergrey]

http://www.post-gazette.com/pg/06356/748219-61.stm

After casino setback, Lemieux open to moving Penguins
Owner says he'll retain team, discuss Plan B, but consider other cities; Balsillie makes new purchase overture
Friday, December 22, 2006

By Dave Molinari, Pittsburgh Post-Gazette



Mario Lemieux says the Penguins aren't for sale anymore, but he isn't done shopping them around.

Mr. Lemieux said yesterday that he and his partners plan to retain control of the franchise, but will entertain offers from any city interested in serving as its home.

He added that the team is willing to discuss any "Plan B" proposal state and local elected officials formulate to finance an arena, with the intent of keeping the franchise here.

Meanwhile, after withdrawing his bid to buy the Penguins last Friday, Canadian billionaire Jim Balsillie yesterday reached out to the team in an attempt to get the sale back on track.

In a letter sent to Mr. Lemieux and CEO Ken Sawyer, with copies to Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl, Mr. Balsillie apologized for any offense he might have caused and said he has "a team ready to immediately start negotiating Plan B" to get funding for a new arena.

Mr. Balsillie praised Mr. Lemieux as "a hero to the people of Pittsburgh" and said selling the team to an out-of-town interest would be "a tragedy."

Mr. Lemieux's announcement came a day after the state Gaming Control Board rejected a slots-license bid from Isle of Capri, which had pledged $290 million for a new arena if it was awarded that license.

"Recent developments, including yesterday's decision by the PGCB, and the recent termination of the purchase agreement by Jim Balsillie, have convinced us that it is time to take control of our own destiny," Mr. Lemieux said in a statement.

"Accordingly, starting today, the team is off the market, and we will begin to explore relocation options in cities outside Pennsylvania. After seven years of trying to work out a new arena deal exclusively in Pittsburgh, we need to take into consideration the long-term viability of the team and begin discussions with other cities that may be interested in NHL teams.

"As soon as we are no longer restricted by our agreement with Isle of Capri from negotiating an arena deal here, in the next few weeks, we will also begin discussions with local leaders about a viable Pittsburgh arena plan."

The Penguins' relationship with Isle of Capri extends through the 30-day period during which the Gaming Control Board's slots-license decisions can be appealed.

There is no indication Isle of Capri is considering an appeal of the decision that awarded the license to PTIG Gaming.

Mr. Onorato said he found no "new news" in Lemieux's statement, noting that relocation always has been a threat because the team's lease at Mellon Arena will expire at the end of June.

Mr. Ravenstahl echoed that sentiment, saying that Lemieux's statement "restates the obvious: That the Penguins do have the option to leave after this year."

Mr. Onorato suggested he actually was heartened by the Penguins' statement, because Mr. Lemieux said the team plans to begin discussions with local officials in the next few weeks. He added that he is confident the city, county and team can cut a deal once they begin talking.

"I believe we can get to a deal that is as competitive as any other city and keep the Penguins here. It's just a matter of getting everyone in the room and working out the details."

Mr. Onorato believes there is "wiggle room" in Plan B, which calls for the Penguins to contribute $8.5 million upfront and $4 million a year for 30 years toward construction of an arena.

He, Mr. Ravenstahl and slots-license winner Don Barden are expected to talk by phone today to discuss Plan B.

"I know and believe that we as a city government, state government and county government can put a viable plan together for a new arena," Mr. Ravenstahl said.

After winning the casino license Wednesday, Mr. Barden reaffirmed his Plan B commitment of $7.5 million a year for 30 years. His spokesman, Bob Oltmanns, said Mr. Barden is "fully prepared to do everything reasonably possible to get Plan B finalized as soon as possible."

Mr. Onorato and Mr. Ravenstahl also talked by phone yesterday with National Hockey League Commissioner Gary Bettman, who said after Isle of Capri lost the license competition that the team's future in Pittsburgh was "uncertain" and that the Penguins would have to explore all other options.

Mr. Bettman did not back off those statements yesterday, Mr. Onorato said. He added that Mr. Bettman said his preference was to keep the team here, "but that depends on having a new arena and a viable financial" arrangement for the team in that facility.

Penguins officials declined to elaborate on Mr. Lemieux's statement, although it left several questions unanswered. It is not clear, for example, when he plans to begin entertaining offers from other cities, or whether he plans to aggressively seek those proposals or wait for interested parties to approach him.

NHL officials would not discuss Mr. Lemieux's announcement, which reflected the frustration that has been building since he got the franchise out of bankruptcy and was assured by elected officials that they would investigate methods of financing a new arena.

"I just hope that Mario doesn't hold his frustration of the past seven years against myself, Dan Onorato and the Penguins fans," Mr. Ravenstahl said.

Several cities have expressed varying degrees of interest in securing an NHL franchise.

Kansas City, where the Sprint Center is scheduled to open in October, heads the group, but Las Vegas, Nev.; Oklahoma City; Portland, Ore.; Winnipeg, Manitoba, Canada; and Houston also are on the list.

Whether Mr. Lemieux actually will have time to engage in serious discussions with all, or even most, of those places is conjecture, because settling on a base of operations for the team is not an open-ended process. Although no formal deadline is in place, several factors dictate that a decision be reached by late winter or early spring.

The NHL, for example, must know where the team will be based so it can put together its schedule for the 2007-08 season, and the front office needs time to develop and implement things like marketing plans, as well as to sell season tickets and arrange corporate sponsorships.

Even after Mr. Lemieux announced that the team was off the market, Mr. Balsillie, who called off an agreement to buy the team last week after Mr. Bettman imposed some 11th-hour conditions -- including one that would have compelled him to keep the team in Pittsburgh, regardless of the circumstances -- reiterated his interest in buying it.

"We've fully studied the situation and are prepared to complete the purchase and immediately commence good faith 'Plan B' negotiations with the government officials to keep the team in Pittsburgh," he said in an e-mail yesterday. "This is an urgent situation, and we support an urgent plan of action."

In his letter, Mr. Balsillie referred to NHL consent agreement and asked Mr. Lemieux to "go arm and arm with me to the commissioner [Mr. Bettman of the NHL] and make one last effort to get our deal done."

Mr. Balsillie, of Waterloo, Ontario, is chairman and co-CEO of Research in Motion, which makes the popular wireless BlackBerry devices. He signed a purchase agreement in October to buy the Penguins for about $175 million.

In a statement released Monday in conjunction with a news conference held by Mr. Lemieux, the team owner said the Penguins were "shocked and offended" by Mr. Balsillie's late withdrawal.



--------------------------------------------------------------------------------

(Mark Belko, Rich Lord and Shelly Anderson contributed to this story. Dave Molinari can be reached at DWMolinari@Yahoo.com. )

[Evergrey]

http://www.pittsburghlive.com/x/pittsburghtrib/s_485347.html

Barden vows to make good

By Andrew Conte and Brad Bumsted
TRIBUNE-REVIEW
Friday, December 22, 2006


Don Barden has a lot of promises to keep.
In his bid for Pittsburgh's slot machine license, he vowed to help pay for a new hockey arena, give money to a North Side community group and spur a $350 million redevelopment of the Hill District.

Local leaders expect him to make good.

"That's one thing you can count on," Barden said after winning the license. "We're going to do what we said we're going to do."





That includes agreeing to:

= Pay $7.5 million a year for 30 years for a new Uptown arena.

= Give the North Side Leadership Conference $1 million a year for three years.

= Work on redeveloping the Mellon Arena site in the Lower Hill District.

Barden had planned to appear today with Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato to talk about paying for an arena but canceled those plans when Penguins officials said they could not yet discuss alternate proposals.

The Penguins had partnered with Isle of Capri Casinos, which had agreed to pay $290 million for a new arena if it won the license. The group has 30 days to file an appeal.

In the Hill District, Barden hired a Detroit-based firm, Hannah Murano Architecture, three months ago to start work on a master site plan. He has been talking with the Hill Community Development Corp. about giving at least $3 million to the group for work in the Hill, spokesman Bob Oltmanns said.

Barden does not have a contract with the development group, but should have a formal agreement within a month, said Marimba Milliones, the nonprofit's executive director.

"We want to ensure this is a partnership with the community," she said. "One of the things we are doing is walking through the details of that. It's a huge development, naturally."

At a minimum, she said, the project should include housing, retail and commercial space. The Hill District needs to take a broad look at preserving the community's historical buildings, she added.

"We're going to look at the entire landscape there," Barden said.

Barden agreed to donate money to the North Side Leadership Conference -- even though he did not receive the group's endorsement, said executive director Mark Fatla. The nonprofit did not back any of the bidders.

The group intends to split the money, with half going for housing projects and half supporting changes to three business districts: East Ohio Street, Federal North and Western Avenue. The money won't be paid until 10 months after the casino opens but will nearly double the group's annual $1.2 million budget.

"Don did not insist on an endorsement," Fatla said. "That's different than the way everybody else did it. ... It's an indication he's willing and able to be a real partner."

Separately, questions have been raised about Barden's only other property under the Majestic Star brand: two casino boats in Gary, Ind. Barden took over the Trump Casino boat in January.

Since then, it has posted lower monthly revenues, falling from $11 million in November 2005 to $8.8 million last month.

But in a bid to cut costs and make the boat profitable, Oltmanns said, Barden reduced the boat's number of table games to 37 from 66.



Andrew Conte and Brad Bumsted can be reached at aconte@tribweb.com or (412) 765-2312.

The take

How slots revenues will be split up: 34 percent, property tax relief; 10 percent, horse-racing industry fund; 5 percent, statewide economic development; 2 percent, Allegheny County; 2 percent or $10 million, whichever is greater, Pittsburgh.
For 10 years, city and county shares are earmarked for Pittsburgh International Airport; community infrastructure; city Urban Redevelopment Authority indebtedness; the David L. Lawrence Convention Center; a convention center hotel; county development debt.

[Evergrey]

http://www.dailymail.com/story/News/+/2006122227/Pittsburgh+casino+already+casting+gloomy+shadow

Pittsburgh casino already casting gloomy shadow
Proposed complex gets license for 5,000 slots, and it's only an hour's drive fro

Jake Stump
Daily Mail Staff



Friday December 22, 2006
The announcement of a new Pittsburgh casino that could offer up to 5,000 slot machines has some West Virginia gaming advocates fretting.

This week, Pennsylvania awarded PITG Gaming a license to build its Majestic Star Casino on the North Shore of the Allegheny River in downtown Pittsburgh.

It will be within an hour's drive of both Mountaineer Racetrack and Gaming Resort in Chester and Wheeling Island Racetrack and Gaming Center, both in the Northern Panhandle.

Business at those two tracks will likely suffer.

Mountaineer Race Track gets one-third of its customers from Pennsylvania, and Wheeling Island relies on Pennsylvania customers for half its business.

PITG Gaming, owned by Detroit businessman Don Barden, plans to open the Pittsburgh casino, complete with restaurants and nightclubs, in March 2008. Former Pittsburgh Steeler Jerome Bettis is a partner.

Forest City Enterprises, which manages the Charleston Town Center and owns 50 percent of the mall, lost out on the licensing bid to open Pittsburgh's only stand-alone casino. Forest City also owns 95 percent of the Charleston Marriott.

West Virginia racetracks likely will feel the brunt of Pennsylvania's gaming industry even before the Majestic Star Casino opens in 14 months.

The Meadows Racetrack and Casino is slated to open in Washington, Pa., just south of Pittsburgh, in April. It is a $450 million gaming center that will have more than 1,800 slot machines, a 3,000-square-foot bar, sit-down snack bar and 300-seat restaurant buffet.

"The biggest concern for West Virginia is The Meadows," said Joseph Weinert, vice president of consulting group Spectrum Gaming and managing editor of the Gaming Industry Observer.

"The most obvious effect is it will provide momentum for legalizing table games," Weinart said. "There will certainly be a negative impact to the slot machines' revenue in West Virginia."

The Meadows also would be within a fairly short drive of West Virginia's two northern racetracks. Wheeling Island would be a 30-minute drive away.

West Virginia's other two racetracks include the Tri-State Racetrack in Cross Lanes and the Charles Town Races and Slots.

Pennsylvania has authorized up to 61,000 video slot machines, and West Virginia officials estimate state racetrack video lottery revenues here will decrease $30 million this budget year and $62 million next year when gamblers head across state lines.

West Virginia's four racetracks brought in $423 million of lottery revenue for the state in 2005-06.

Pennsylvania approved video gambling last year and already has two racetrack casinos operating.

Mohegan Sun at Pocono Downs, near Wilkes-Barre, and Philadelphia Park Racetrack have opened within the past month. Those centers are in eastern Pennsylvania and might not have as much impact on West Virginia.

Three other racetrack casinos, in addition to The Meadows, are expected to open by spring 2007. They are Harrah's Chester, near Philadelphia; Presque Isle Downs in Erie; and Penn National near Harrisburg.

Officials said Penn National has the potential to hurt business at Charles Town Race and Slots in the Eastern Panhandle, about 100 miles from the proposed Harrisburg racino.

Five stand-alone casinos in Pennsylvania, including the PITG Gaming establishment in Pittsburg, will offer only slot machines as forms of gambling at their venues. Four of those will be in Eastern Pennsylvania.

Weinert, the gaming expert, believes at least half of the 61,000 licensed slots in Pennsylvania will be in operation in the next five years. Right now, there are just 2,300 slots in operation in the Keystone State.

West Virginia has 11,300 slot machines in operation at its racetracks.

"I don't think you'll see all 61,000 slots in Pennsylvania up for well over a decade," Weinert said. "But market conditions will dictate that."

Delegate Joe DeLong, D-Hancock, who is set to become House majority leader next month, said the announcement of the Pittsburgh casino adds more fuel to the debate about whether West Virginia's casinos should add table games to their entertainment lineup to entice customers.

"There was plenty of fuel on the fire in the first place," said DeLong, whose district includes Mountaineer Racetrack. "As Pittsburgh comes on line, we'll see a decrease in revenues. What it does is put the Legislature in a position this session. The state is going to lose revenue if we don't do something to keep up."

The Legislature is likely to discuss table games when it meets in January. House Speaker-elect Rick Thompson, D-Wayne, has expressed support for a local referendum that would let voters in four counties with racetracks -- Kanawha, Hancock, Ohio and Jefferson -- decide the fate of table games.

Thompson has stated he would let legislators debate the issue and would not force discussion one way or another.

While Delegate Bob Kiss, D-Raleigh, was House speaker, table games legislation stalled. The Senate passed a referendum measure in 2005, but Kiss was reluctant to bring up the issue on the House floor.

Some legislators, especially those representing the Northern Panhandle, expressed frustration over how House leaders handled the issue last year.

"As a legislator who supports the issues of that area (Hancock County), we've become very sensitive to the job and revenue loss that could take place," DeLong said.

A statewide survey released by the West Virginia Racing Association earlier this year showed 61 percent of registered voters favored allowing residents in the four racetrack counties to decide the table games issue.

Contact writer Jake Stump at jakestump@dailymail.com or 348-4842.

[WZ1]

Toronto and Buffalo won't like that one bit. Still, the "Golden Horshshoe" { Toronto, Buffalo, and Hamilton} has 6 million people. More than enough to support the three teams.

There is actually more like 7 million on the Canadian side alone. If you include Buffalo there is like 8.3... but quite franly people here in the Toronto area are sick of hearing the excuse that we have 2 teams already.. Buffalo still is in the USA and some Canadians cant even cross the border, even less if Bush gets his way.Screw Buffalo (its a nice city but very much has nothing to do with GTA-H

[Evergrey]

http://www.post-gazette.com/pg/06358/748351-155.stm

Hard to see how Lemieux can lose
Sunday, December 24, 2006

Mario Lemieux is a genius. At a time when the only question is how many millions he's about to make, thousands of his weepy fans are feeling sorry for him.

We simply must throw more money his way or he'll move the Pittsburgh Penguins to that cow town with the new arena! they cry.

It's true that Mr. Lemieux missed out on a great deal last week, the free arena his team would have gotten had the state backed his choice for the new Pittsburgh slots casino.

But Mr. Lemieux so deftly played his hand that the day he "lost'' the casino sweepstakes, the winner was compelled to pledge $7.5 million a year for the next 30 years to help fund a new hockey arena.

On top of that, the state promises to siphon $7 million from its own slots money each year for the next 30 years so it can go to the same cause: Mario's team.

That's $14.5 million times 30. That's $435 million. Don't you wish you could be that big a loser?

Some are compelled to feel sorry for Mr. Lemieux because his other deal was better. In this one, the team actually must kick in something for its new ice palace. The Penguins are asked to contribute $8 million up front and $4 million a year for 30 years. That's $128 million, for those keeping score at home. That's less than 23 percent of the total cost.

The dollars are enormous because of financing costs; you'd be just as frightened if you saw what you paid for your 30-year mortgage. But the deal is comparable to the Pirates' contribution to PNC Park (nearly $50 million of $262 million, or 19 percent) and better than the Steelers' deal for Heinz Field ($123 million of $281 million, or about 44 percent.)

The Penguins' deal is even better when you realize the team has a crack at so many more concerts and other events. But that's not the company line. Mr. Lemieux is still negotiating, and why not? Look how well he's done pretending he's unappreciated.

His statement Thursday can be summed up this way: "That's it. I've had it. I'm getting my pucks out of here. Unless...''

He took the Penguins off the market, but said, "We will begin to explore relocation options in cities outside Pennsylvania." As soon as the team is safely free of its agreement with its old partner, a deal now best described as the "Isle of Debris," the Penguins "will begin discussions with local leaders about a viable Pittsburgh arena plan."

Evidently, kicking in a few million dollars a year is not viable to him. Not when Kansas City, which lost its hockey franchise 30 years ago because almost nobody crossed the prairie to watch, is desperate to fill a new arena that opens in October.

Mr. Lemieux said he'd have no comment beyond his prepared statement, so we can only speculate that taking the team off the market is designed to give suitors more groveling time. Would-be buyer Jim Balsillie already has gone to his knees asking St. Mario's forgiveness, and politicians are making nice, too, as local media regularly fuel fans' fears of losing professional hockey.

Kansas City, Las Vegas, Houston, Oklahoma City and Seattle are all tossed around blithely as future homes of the Penguins, and whatever problems those places have are rarely mentioned. With the lease at Mellon Arena, the NHL's oldest building, running out at the end of June, Mr. Lemieux can play his exit card for all it's worth.

So if he acts like almost every professional athlete of the past quarter-century, taking whatever deal offers a few dollars more, and saying he has to do what's best for his family, who could blame him?

On the other hand, if he exits the newest arena in his league, in a proven hockey town, with potential revenue streams from concessions and non-hockey events that his team never had before, it's easy to see another struggling NHL franchise arrive to take the Penguins' place, albeit a team without young stars Sidney Crosby and Evgeni Malkin.

It's hard to see any way Mr. Lemieux can lose. If he keeps his team here, he "saves Pittsburgh hockey" for the umpteenth time while making a fortune. If he moves the team, well, his followers will say he was pushed into making himself that fortune.

Mr. Lemieux may go down as an even greater businessman than he was a hockey player, and who would have thought that possible?


--------------------------------------------------------------------------------
(Brian O'Neill can be reached at boneill@post-gazette.com or 412-263-1947. )

[WZ1]

I am sorry to break the news to you guys, but you dont even deserve a team. I hope the pens leave, i know your going to tell me how good the local tv numbers are, but all that says to any prospective owner is that the fans are too lazy to go to the games and would rather watch them on tv.. something they can do if the team is moved.

NHL Attendance Leaders


Season: 2006-2007
2007 Attendance


1 Montreal
2 Detroit
3 Tampa Bay
4 Toronto
5 Calgary
6 Philadelphia
7 Ottawa
8 Buffalo
9 Vancouver
10 Minnesota
11 NY Rangers
12 Dallas
13 Colorado
14 San Jose
15 Carolina
16 Edmonton
17 Los Angeles
18 Columbus
19 Atlanta
20 Pittsburgh
21 Anaheim
22 Florida
23 Nashville
24 Phoenix
25 Boston
26 Washington
27 Chicago
28 New Jersey
29 NY Islanders
30 St. Louis

[roner]

The NYC area should give up one, or even two of its teams. 28th and 29th in the same area, come on NHL. And what the fuck happened to the blues and bruins?

[oreoman85]

The Devils are building a new arena in Newark. You got 10,000 fans a game at Continental, how many more do you think will go in fucking Newark? :haha:

[WZ1]

I would much rather see NYI or NJD leave than Pittsburgh for sure, but common guys you have Crosby and Malkin and Staal you should be in the top 10.

[AaronPGH]

The games are practically always sold out here! There's a reason the numbers are so low, and it's the same reason that we need a new arena. That is one of the worst arguments I've ever heard on this board. Watch what happens to the numbers when we get the new home.

[DBR96A]

Maybe Pittsburgh ranks 20th in total attendance because Mellon Arena is smaller than the average NHL arena? I mean it was built in 1961, and not with ice hockey as its primary function either. Just a thought.

[WZ1]

They go by percentage guys; Check it out on ESPN.com

[Evergrey]

http://www.pittsburghlive.com/x/pittsburghtrib/sports/penguins/s_486027.html

Pens get ballpark figure for arena

By Andrew Conte
TRIBUNE-REVIEW
Thursday, December 28, 2006


There's no such thing as a free lunch -- or a free arena.
But the deal Pittsburgh and Allegheny County are offering the Penguins would give them a new arena with team contributions similar to those made by the Steelers and Pirates for their North Shore stadiums.

Unlike those outdoor venues, an Uptown arena could make money for its operator throughout the year.

"I don't know why (the Penguins) are fussing so much about $3 million a year, if they can get the rental agreement the Steelers and Pirates have," said Jake Haulk, president of the Allegheny Institute for Public Policy, a Castle Shannon think tank. "A lot of this is just posturing."





Gov. Ed Rendell and local leaders have proposed the Penguins pay $8.5 million upfront and $2.9 million a year for 30 years, while forgoing $1.16 million a year in naming rights. The state would pay $7 million a year for 30 years from gambling money, and Majestic Star Casino would pay $7.5 million a year for 30 years.

A Penguins spokesman declined to comment. Team officials plan to talk with local leaders about building an arena, but said they will shop the team to other cities.

Pittsburgh needs the Penguins to stay in order for a new arena to work, said Megan Dardanell, spokeswoman for Allegheny County Chief Executive Dan Onorato. City and county leaders are working to set up a meeting with the team, she said.

"We need to have an anchor tenant, and we want that to be the Penguins," Dardanell said.

Political leaders are willing to negotiate such things as the rights to concessions, parking and advertising, Onorato has said.

The football and baseball teams helped pay for their stadiums, mostly by setting aside money they expected to make from the buildings.

That's common for sports construction, said Marc Ganis, president of Sportscorp Ltd. in Chicago, which served as a consultant for Allegheny County on the stadium deals.

A professional hockey team does not make as much television money as a football or baseball team, and the Penguins have to compete for local sponsors and luxury seat holders with the stadiums and the University of Pittsburgh's Petersen Events Center in Oakland.

But an arena could make more money from non-sporting events.

"It's a matter of how much, and it all comes down to a negotiation," Ganis said.

With cost overruns, the Steelers contributed more than $100 million to the $280.8 million cost of Heinz Field. The team paid $8.8 million in cash, and then raised $39.52 million from selling seat licenses, and more money from a ticket surcharge.

The Steelers made back $57 million in naming rights for Heinz Field.

Rendell based the Penguins arena offer on a deal the Pirates had for PNC Park. The baseball team kicked in about $50 million with cost overruns, including $8.5 million in cash and $2.9 million a year for 29.5 years.

The Pirates offset the annual payments with a ticket surcharge and a naming rights agreement that pays $30 million over 20 years.

On the public side, the state paid $75 million for each of the stadiums, and the Allegheny County Regional Asset District borrowed $173 million to retire the debt on Three Rivers Stadium and help pay for the new venues.

Collecting a 1 percent sales tax in the county, the district agreed to pay $13.4 million a year for 30 years to pay off the loans.

The district has not been asked to help pay for an arena, and Onorato has said RAD money should not be used. But the fund continues to help the Penguins anyway.

The district agreed to pay Mellon Arena's debts through 2018. The payments started out at $3.2 million a year and dropped to $2.4 million in 2006. They'll fall to $1 million next year, and smaller amounts in the future.

"The public sector regularly comes to the aid of the hockey team," said David Donahoe, RAD's executive director.



Andrew Conte can be reached at aconte@tribweb.com or (412) 765-2312.

[Wheelingman04]

They go by percentage guys; Check it out on ESPN.com

I agree that they don't have the best attendence. Many of their games during the middle of the week only get about 14,000 people.

[Evergrey]

well for those complaining about attendance... the Pens still are mediocre despite all of their potential young stars... recovering from several years as the worst team in the league... and still playing in the oldest and crappiest (and one of the smallest) arenas in the NHL certainly doesn't inspire the faithful to come out... Mellon Arena has suffered roof leakages and power outages during games in recent years... it's a confusing design with poor (and sometimes blocked) sight-lines...

maybe the hyper-aggressive WZ1's hometown of Hamilton can poach the Bruins or Blackhawks instead... who play in much larger markets but draw much worse than the Penguins...

[PittPenn 03]

I will add my two cents here also on this subject. If the Penguins would win half of the games they are losing right now, I would be willing to bet they would sell out or nearly sell out all of their games. The tickets are very pricey for a losing team in a very dumpy building. I went to a game back in 2004 for the first time in over a decade (mostly from not living here for so long). I paid $25 dollars for a ticket that should have been $10 for a winning team (-it was about as high up as you could go and the view was somewhat limited - and if I remember correctly it was on sale from $35 because I purchased it on game day as a walk-up). The Penguins lost of course, so I was out about $40 (for a ticket beer and food), for a mediocre game in a seat I could barely see from. If I want to watch a losing team, I could go to two or three Pirates games for the same price - and do so gladly. If the tickets were $10 or $15 for nose bleeds, I would be at at least one game a month winning or losing, and I bet half of Pittsburgh would feel that way. I just looked on the Penguin's website - $35 for a cheap seat!! Even in the Penguin's glory days, there was always somewhat affordable seating - not any more.

I think the teams that should be more concerned on that list are ones that are in 1st place in their division but are situated around the Penguins even with a bigger arena. I can assure you that if the Penguins were in 1st or 2nd place, they would be as high as their capacity would allow them to be on that list.

well for those complaining about attendance... the Pens still are mediocre despite all of their potential young stars... recovering from several years as the worst team in the league... and still playing in the oldest and crappiest (and one of the smallest) arenas in the NHL certainly doesn't inspire the faithful to come out... Mellon Arena has suffered roof leakages and power outages during games in recent years... it's a confusing design with poor (and sometimes blocked) sight-lines...

maybe the hyper-aggressive WZ1's hometown of Hamilton can poach the Bruins or Blackhawks instead... who play in much larger markets but draw much worse than the Penguins...

[Wheelingman04]

^ Of course they would sell out most of their games if they had a better team. Even Carolina, which is a horrible hockey market sold out lots of games.

[Evergrey]

http://www.post-gazette.com/pg/06363/749815-61.stm

Lemieux agrees to meeting with Rendell on financing to keep team in Pittsburgh
Arena talks next week
Friday, December 29, 2006

By Tom Barnes, Post-Gazette Harrisburg Bureau



HARRISBURG -- Gov. Ed Rendell is coming to Pittsburgh next week to talk to Penguins' owner Mario Lemieux about financing for a new arena to anchor the team in Pittsburgh.

Mr. Rendell announced a goal of March 31 for completing a deal to finance a new $290 million arena with tax-exempt bonds. That target date is about a month later than the February deadline mentioned last week by Allegheny County Chief Executive Dan Onorato.

Mr. Rendell, joined by Mr. Onorato and Pittsburgh Mayor Luke Ravenstahl, sent a letter Wednesday to Mr. Lemieux, saying they are "solidly committed to keeping the Penguins at home in Pittsburgh." The Pittsburgh Post-Gazette obtained a copy of the letter yesterday.

"We believe the time has come for those [arena financing] discussions to begin and to proceed in an expeditious manner, as we would like to complete negotiations on a financial plan by no later than March 31, 2007," the three officials said.

Mr. Rendell proposed starting the arena talks in Pittsburgh on Thursday and, in a letter to the governor last night, Mr. Lemieux agreed. Also at the meeting will be team officials Ronald Burkle, Ken Sawyer, David Morehouse and Chuck Greenberg.

Mr. Lemieux said he wants to have a financing plan ready "well in advance" of March 31.

Mr. Lemieux, in his letter, said that when he and his partners bought the team seven years ago, "We made it clear that we needed a new arena to become economically viable and competitive in Pittsburgh."

State and local officials became nervous after Mr. Lemieux said last week he would begin talking to other cities about moving the team.

Kansas City, Mo., has a new but empty arena and would like to land a hockey team.

The Penguins' lease at Mellon Arena expires in June. The arena, which opened in 1961, is the oldest in the National Hockey League.

Mr. Onorato has called reaching a deal to build a new arena for the Penguins his No. 1 priority.

In his letter to Mr. Lemieux, Mr. Rendell said he'll be in Pittsburgh Thursday and would like to arrange "a mutually agreeable time" to begin talks on financing for a new arena. Mr. Lemieux said Thursday afternoon works for him.

The governor said he recognizes that Mr. Lemieux has had a contractual obligation with Isle of Capri casinos, a St. Louis-based gaming company that had offered to build a new $290 million arena for the Penguins if it received a state slots license.

But Isle of Capri didn't get the license. Instead, the state Gaming Control Board, on Dec. 20, awarded the sole slots license for Pittsburgh to Detroit casino entrepreneur Don Barden. He plans to build a Majestic Star casino in the Chateau neighborhood near the Carnegie Science Center.

Mr. Lemieux said that now that Isle of Capri's offer to build the arena "has been turned down" by the state, "We are in the process of exploring all of our options" for building an arena.

In the letter, the governor again outlined the details of his so-called Plan B, the backup plan for funding a new arena, under which a $290 million bond would be floated and paid off over 30 years with money from four sources.

Under the Rendell plan, the team would provide $8.5 million upfront and $2.9 million per year to pay off the bonds; Mr. Barden has agreed to provide $7.5 million a year; a new state economic development fund, fueled by casino revenue, would provide $7 million a year; and another $1.1 million annual contribution would come from selling the naming and advertising rights at the new multipurpose arena, whose major tenant would be the Penguins.

Mr. Lemieux told the governor he appreciated "the positive tone of your recent public comments." But he said he's hoping that a financing plan could be developed that "is significantly better than the original Plan B."

The governor, county executive and the mayor reminded Mr. Lemieux how they have "moved forward with planning for the new arena."

They said they have "acquired the necessary land within the footprint designated by the Penguins and have continued to work on the design and financing plans."


--------------------------------------------------------------------------------

(Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254. )

[Evergrey]

Experts like offer to Penguins

http://www.pittsburghlive.com/x/pittsburghtrib/s_486775.html

By Andrew Conte and Rob Rossi
TRIBUNE-REVIEW
Wednesday, January 3, 2007


A new Uptown arena could mean millions of dollars a year for the Penguins -- and might be enough to keep the team from leaving Pittsburgh.
Compared to a building as old as Mellon Arena, a new one with luxury suites, concessions and non-sporting events could bring in as much as an extra $20 million a year, said Andrew Zimbalist, a sports economist at Smith College in Massachusetts.

That's not all profit, but that money should go a long way toward covering the team's contribution for the building, experts said. Under the current 30-year offer, the team would have to pay $8.5 million up front and $2.9 million a year, while forgoing $1.16 million a year in naming rights.

"It's rare that another city can make that offer," said Darren Rouvelle, a CNBC sports business analyst. "Even with that up-front fee, that's still very much a sweetheart deal."





Team officials have agreed to sit down late Thursday afternoon with Gov. Ed Rendell, Allegheny County Chief Executive Dan Onorato and Mayor Luke Ravenstahl to talk about how to pay for an arena. Team owners also plan to look at relocating.

Although the Penguins likely would have to help pay for an Uptown building, the team could make more money from an arena here, too. All of the revenue from a new Pittsburgh arena is available to "help keep the team viable," Onorato said recently.

"We're going to be able to put together a very competitive package because we have that flexibility," Onorato said. "We know there are a lot of revenues that are going to come out of a new building."

That could be a better offer than those of so-called "free arenas" in cities such as Kansas City or Portland.

Scheduled to open in September, Kansas City's Sprint Center does not have a main tenant, and is offering a guarantee that all luxury boxes will be sold through the first season for a National Hockey League franchise.

But the operator, AEG, a subsidiary of the Anschutz Company, invested $54 million toward the cost of the $276 million Sprint Center, allowing it to determine how much money would go to a main tenant.

"Revenues are certainly key to the sports franchise," said Neil Irwin, a sports analyst at Bryan Cave in Phoenix. "If they're not able to tap into other revenue sources, the sports side of it will usually not support itself."

Even without counting new revenues, the public seems to be making a fair offer to the Penguins, experts said. An average deal would require the team to put up 35 to 40 percent of the arena cost, Zimbalist said.

Under the latest offer, often called Plan B, the team would have to come up with 20 percent.

The state would pay $7 million a year from an economic development fund backed by gambling money, and Majestic Star Casino would pay $7.5 million a year from its profits at a new North Shore slot machine parlor. That would allow the city-county Sports & Exhibition Authority to borrow $230 million toward the $290 million arena cost.

"This is a better than average deal that the Penguins are being offered," Zimbalist said. "It's hard to imagine available cities out there that are better hockey cities than Pittsburgh. But I don't know what is the starting point for the Penguins."

The city offers the Penguins an established hockey market with a rich tradition and strong fan base. That can be a priceless commodity, especially in the National Hockey League.

"There is real concern when you have to start from zero season tickets," said Marc Ganis, president of Sportscorp Ltd. in Chicago. "Pittsburgh doesn't need to be dollar-to-dollar with the other markets."

Help paying for an arena?

As the Penguins prepare to negotiate terms for a new arena, the public is still paying for the old one. The Allegheny County Regional Asset District is obligated to make the following payments for debt and improvements at Mellon Arena:

Year -- Amount

2007 -- $1,000,000

2008 -- $1,000,000

2009 -- $1,000,000

2010 -- $965,000

2011 -- $925,000

2012 -- $893,000

2013 -- $849,000

2014 -- $817,000

2015 -- $788,000

2016 -- $741,000

2017 -- $991,000

2018 -- $685,000

Total $10,654,000

Source: Allegheny County Regional Asset District


Andrew Conte and Rob Rossi can be reached at aconte@tribweb.com or (412) 765-2312.

[Evergrey]

http://www.post-gazette.com/pg/07005/751444-61.stm

Lemieux 'optimistic' on keeping Penguins in Pittsburgh
After meeting with team owners, city, county and state officials say their arena offer is competitive with Kansas City's
Friday, January 05, 2007

By Mark Belko, Pittsburgh Post-Gazette

With an enticing offer from Kansas City before him, Penguins owner Mario Lemieux emerged from a closed-door meeting with local and state officials optimistic about the prospects for keeping the team in Pittsburgh.

In brief remarks afterward, Mr. Lemieux described yesterday's 75-minute session with Gov. Ed Rendell, Mayor Luke Ravenstahl and county Chief Executive Dan Onorato at the State Office Building as "very positive."

When asked whether he was optimistic about keeping the team in Pittsburgh, he replied, "I've always been very optimistic. I've been here for 20-some years. But we have to evaluate all of our options, obviously. That's why we went to Kansas City ... to look at what they had to offer.

"But I'm optimistic with the meeting that we had today with the politicians here in town that they're willing to step up and talk about some issues that were a big concern for us going back seven years."

At the same time, Mr. Lemieux did not rule out a potential move, saying the team would take the next week or so to "really evaluate from our side where we're going."

Perhaps the most important faceoff of Mr. Lemieux's career, with the franchise's Pittsburgh future hanging in the balance, came on the heels of a visit to Kansas City during which the team was offered use of the new $276 million Sprint Center rent-free and a share of the profits from management of the venue.

State and local officials have countered with Plan B, the Rendell-crafted arena funding formula built around gambling revenues and contributions from the team. The team share was $8.5 million upfront, plus payments of $2.9 million a year for 30 years and $1.1 million a year from naming rights.

However, it is believed that Mr. Rendell, Mr. Ravenstahl and Mr. Onorato offered a somewhat sweetened version in their initial meeting with Mr. Lemieux, co-owner Ron Burkle, team President Ken Sawyer and other representatives yesterday.

None of the participants would discuss the details afterward. But Mr. Ravenstahl insisted the latest offer is "competitive with Kansas City."

"We're confident that we have a very competitive deal," he said.

Like Mr. Lemieux, the public officials described the session as a positive one, though it appeared there was still much work to do.

"It was very productive today," Mr. Onorato said.

No additional meetings have been scheduled so far, but Mr. Ravenstahl said the two sides expect to continue discussions and "get down to specifics" to try to craft a new arena deal and lease that would keep the team in Pittsburgh for years to come.

Mr. Rendell said before the meeting that the state, city and county would not offer a "free" arena to the Penguins. He said that all professional sports teams that have built new facilities in Pennsylvania contributed "significant" dollars to the projects.

"We just don't have the capacity to do that," he said, adding he was skeptical of the reports coming from Kansas City that the Penguins had a free arena waiting for them.

Nonetheless, Mr. Rendell, who did not meet with reporters afterward, said he was prepared to modify Plan B based on statements by the Penguins that they had significant losses since offering to provide $2.9 million a year and $8.5 million upfront as part of an arena funding plan several years ago.

"If that is true, and the [city-county Sports & Exhibition Authority] believes it is, we will restructure our offer and make it better and make it an aggressive one," he said.

The session was the first face-to-face meeting between Mr. Lemieux and local and state officials since Isle of Capri, in partnership with the Penguins, lost its bid for the Pittsburgh casino license. The Isle had pledged $290 million for an arena in its proposal.

Mr. Lemieux said after the loss that he would entertain offers from other cities about a possible relocation, and also talk to local and state officials about a new arena deal under Plan B. The team's lease at Mellon Arena, the oldest building in the NHL, expires at the end of June.

The visit to Kansas City Wednesday and yesterday was the first since his announcement, and team officials came away impressed with what they saw. Mr. Lemieux said he had two "great" meetings yesterday, one here and the other in Kansas City.

The Sprint Center won't open until October, but already all 72 suites in the arena have been sold. At a news conference yesterday, Tim Leiweke, president of Anschutz Entertainment Group, said the offer to the Penguins includes no rent and a portion of the profits from management of the center. The team would serve as partner with Anschutz, which invested $54 million in the Sprint Center, in overseeing the facility.

Initial reports indicated that the Penguins would have to pay $27 million to buy into the building, but that apparently changed overnight. Mr. Leiweke said yesterday there would be no buy-in. The Penguins also would get to keep at least some building revenue, although it was unclear how much.

"We are not here to steal the Penguins from Pittsburgh and have been very respectful of their process," Mr. Leiweke said. "We understand this is Pittsburgh's team to lose, and we respect that right. Should Pittsburgh and the state of Pennsylvania not be able to work out what is deemed to be a proper arrangement in the eyes of the Penguins and the NHL, we believe the best opportunity for the Penguins is Kansas City."

Mr. Onorato has said that local and state officials have a key advantage under Plan B in that none of the revenues from the arena would be used to finance construction. That presumably would leave most if not all of that money, millions of dollars a year, for the Penguins.

He said after the meeting with the team that he doesn't feel pressured by the Kansas City offer.

"I don't think that changes anything. Again, this was the first chance to sit down and the fact it was a productive meeting, I think, is a positive sign," he said.

Mr. Onorato has said that no Allegheny Regional Asset District money, the funding stream used to pay a large part of Heinz Field and PNC Park, would be earmarked for a new arena. Mr. Rendell said "very little public tax dollars" would be part of a deal.

Besides team contributions under Plan B, another $7.5 million a year for 30 years would come from Pittsburgh casino winner Don Barden and $7 million a year from a slots-financed state economic development fund.

Mr. Lemieux has expressed frustration at failing to secure a new arena over the past seven years, but none of the team owners and none of the political powers were in place when funding proposals were first bandied about in 1998.

"I know he's upset," said Mr. Onorato, who publicly reached out to Mr. Lemieux when the Isle of Capri deal fell through. "We have to get beyond that. Let's forget about the past."


--------------------------------------------------------------------------------

(Staff writer Robert Dvorchak contributed. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

[PittPenn 03]

They go by percentage guys; Check it out on ESPN.com

I actually had a chance to check this chart out, and you are wrong - this 20 ranking was sorted by Average. If you sort by percentage by clicking percentage, Pittsburgh ranks 16th. Not much better I suppose, but I think considering how bad the team is as a whole and how crappy Mellon arena is, this isn't that bad. In total attendance Pittsburgh ranks 17th.

I think there is also a perception that it is difficult to get tickets due to Crosby and Malkin (which might keep people from trying - myself included), and sometimes it is. Over the holidays, on the days I checked attendance figures for home games, Mellon Arena was sold out. As someone pointed out on this thread I believe, it is probably week night games that pull attendence down.

[Evergrey]

http://www.post-gazette.com/pg/07006/751739-61.stm

New arena hopes advance on 2 fronts
Site preparation work to begin while Penguins haggle with local officials
Saturday, January 06, 2007

By Mark Belko, Pittsburgh Post-Gazette



The city-Allegheny County Sports & Exhibition Authority is pressing ahead with preparations for a new arena even as state and local officials get down to the nitty-gritty of trying to cobble together a deal to keep the Penguins in Pittsburgh.

A day after Penguins owner Mario Lemieux had a "very positive" meeting with state and local leaders on an arena funding plan, they must translate those sentiments into a package competitive enough to prevent the franchise from skating off to Kansas City, where a rent-free arena awaits.

No formal negotiations have been scheduled but the two sides already have started to exchange information and to follow up on issues raised at Thursday's 75-minute session at the State Office Building.

While the Penguins and representatives from the city, county and state get down to haggling out the details of a potential agreement, the SEA is starting the advance work to prepare the arena site, bordering Fifth and Centre avenues.

An SEA-hired contractor, Precision Environmental, begins work Monday removing asbestos from buildings in the corridor to clear the way for demolition, which is expected to start next month. In September, the arena construction is to start, with completion set for fall 2009.

One other point to be negotiated under Plan B is the sale of the St. Francis Central Hospital, which is needed by the SEA as part of the arena site. The building was purchased for $8 million by the Penguins to hold it for an arena.

Interestingly enough, if the Penguins were to get at least $8.5 million for the building in a sale, it would cover their upfront contribution under Plan B.

Following Thursday's meeting in Pittsburgh, Mr. Lemieux, who long has been at odds with local politicians over funding for an arena, called the session "very positive" and said he was optimistic about the prospects of keeping the team here. He added local elected leaders seem to be "willing to step up and talk about some issues that were a big concern for us going back seven years."

But whether that optimism can be transformed into a deal remains to be seen. Both sides are hoping to reach an agreement within the next two weeks, well in advance of the 30-day deadline set by the Penguins in deciding between Pittsburgh and Kansas City.

The Kansas City deal could be hard to beat.

It gives the Penguins a rent-free $276 million Sprint Center arena, no construction costs, no upfront payments, and a 50-50 partnership with Anschutz Entertainment Group to derive profits from all revenue streams, including suites, club seats, ticket sales, advertising, concessions, parking, and naming-rights fees, according to the Kansas City Star newspaper.

AEG, which invested $54 million in the Sprint Center, to open in October, also dropped a requirement for a $27 million buy-in by the Penguins to be equal partners in the building.

And during a breakfast meeting Thursday, more than a dozen Kansas City business leaders, including executives from Sprint, Farmland Industries and UMB Bank, turned out to pledge corporate support in ticket sales and sponsorships, the Star reported.

In Pittsburgh, Gov. Ed Rendell's Plan B is the starting point for negotiations. In its initial form it would have required the Penguins to contribute $8.5 million upfront and roughly $4 million a year, including $1.16 million annually in naming rights, toward construction.

But during Thursday's meeting, state and local officials offered a somewhat sweetened version of Plan B, although the exact details are not known.

Mr. Rendell had said before the session he was prepared to modify Plan B based on team financial losses over the last several years. Mayor Luke Ravenstahl characterized the offer as "very competitive" with Kansas City.

As part of negotiations, there's also a chance that local and state leaders may be willing to work out an arrangement that would give the Penguins more revenues from Mellon Arena during the interim period between the negotiation of a deal and the completion of the arena in 2009.

"Informally I know that point has been raised," said state Sen. Wayne Fontana, an SEA board member.

Such a concession may be important because the Penguins would have the ability in Kansas City to begin generating revenues from a new building as quickly as October, not two years from now.

At Mellon Arena, the team currently must share revenues with master tenant SMG. The arrangement would change at the end of June, when the Penguins would become master tenant and SMG the arena manager. Of course, the Penguins' arena lease expires at the same time, giving the team the ability to move elsewhere.

Nonetheless, despite the sweetheart deal being dangled by Kansas City, Mr. Fontana described himself as "real optimistic" about keeping the team in Pittsburgh.

"This is a hockey town. There's no question about it. It has the history and the track record. That in itself gives us the edge, but I think the deal itself is superior to Kansas City," he said.

"There might need to be some modifications here and there, but I think that when you look at the whole package, I don't see why you go to a town that had a hockey team and lost it."


--------------------------------------------------------------------------------

(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.

[architorture]

i thought pens attendence rates this season were around 94% on average... that is pretty good by most measures

really florida should lose a team...

[Evergrey]

http://www.post-gazette.com/pg/07009/752282-85.stm

Arena 'Plan C' offers Penguins profits
Peduto proposal would allow team to share in Mellon Arena site, Lower Hill development
Tuesday, January 09, 2007

By Mark Belko, Pittsburgh Post-Gazette

State and local politicians should go beyond Plan B to offer the Penguins something other cities can't -- a share of the profits in the redevelopment of the Mellon Arena site, city Councilman Bill Peduto says.

The land would be available for development if a new arena is built across the street, as proposed by the city and county. Detroit businessman Don Barden already has promised a $350 million redevelopment of the lower Hill District, including the Mellon Arena property, as part of his winning casino bid.

But Mr. Peduto, a likely mayoral candidate, said local and state officials, in conjunction with Mr. Barden, should offer the Penguins a chance to partner in the redevelopment and share in the profits as part of the negotiations to keep the team from moving elsewhere.

"This is the perfect opportunity for Barden, the Penguins, the city, the county and the state to partner together," he said. "It's a great way to keep the team in Pittsburgh, redevelop the Hill, get Barden more involved in the community, and lessen the impact on taxpayers."

As part of negotiations to build a new arena for the team, Gov. Ed Rendell, Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato are offering to give the Penguins most, if not all, of the revenues generated by the facility.

Adding potential redevelopment profits to the mix could be a difference maker that cities like Kansas City, which is making a strong bid for the team, would be unable to match, Mr. Peduto said.

"I'm saying scrap Plan B and create Plan C," he said.

He said the arrangement would be similar to that negotiated with the Pirates and the Steelers to redevelop land between PNC Park and Heinz Field. Both teams get a piece of revenues from the redevelopment, which is being led by Continental Real Estate Cos.

Mr. Peduto said he has offered his assistance to the Penguins but has not spoken to either Mr. Ravenstahl or Mr. Onorato.

The Plan B formula for funding a new arena calls for a contribution of $7.5 million a year for 30 years from Mr. Barden, who is building his casino on the North Shore; $7 million a year for 30 years from a slots-financed state economic development fund; and about $4 million a year from the Penguins, including $1.16 million annually in naming rights, plus an upfront payment of $8.5 million.

State and local officials presented a somewhat sweetened version during a meeting with team owners Mario Lemieux and Ron Burkle last week in an effort to prevent a move to Kansas City, where officials have offered a rent-free arena that is scheduled to open in October.

The Penguins have set a 30-day deadline for deciding whether to stay in Pittsburgh or to relocate.


--------------------------------------------------------------------------------

(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

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http://www.post-gazette.com/pg/07010/752505-336.stm

Barden: No more Plan B money, but development partnership possible
Wednesday, January 10, 2007

By Mark Belko, Pittsburgh Post-Gazette



Pittsburgh casino winner Don Barden won't increase his contribution to Plan B to help keep the Penguins in town, but he is willing to consider a partnership with the team in the redevelopment of the Mellon Arena site.

Mr. Barden has pledged $7.5 million a year for 30 years toward construction of a new arena under the Plan B formula, and that's as far as he'll go, spokesman Bob Oltmanns said yesterday.

"Our point has been all along that the Penguins ought to have some equity in this project, too," he said. "We think we're contributing more than our fair share."

He added neither Gov. Ed Rendell, Mayor Luke Ravenstahl, nor Allegheny County Chief Executive Dan Onorato had asked Mr. Barden to beef up his offer as part of their negotiations with the Penguins. There has been speculation that politicians might turn to Mr. Barden for help in reducing the Penguins' share.

Nonetheless, Mr. Oltmanns said Mr. Barden, who proposed a $350 million redevelopment of the lower Hill District in his winning casino bid, would consider a partnership with the Penguins in that venture.

City Councilman William Peduto, a likely mayoral candidate, said Monday that local and state officials should offer the Penguins a chance to partner in the redevelopment of the Mellon Arena site and share in the profits as part of Plan B talks.

"We're looking to be partners with lots of different entities and I would hope, now that this license has been awarded, moving forward we can perhaps heal some of the wounds left after [the casino award] announcement and get on with making investments that would be good for Pittsburgh," Mr. Oltmanns said.

The Mellon Arena property would be available for redevelopment if a new facility is built across the street, as pitched by the city, county and team.

Mr. Onorato considers possible redevelopment rights a "negotiable issue" in the Penguin talks, spokesman Kevin Evanto said. He added Mr. Onorato had said more than a year ago that such rights were one of the issues that should be considered in negotiations on a new arena.

In fact, the city-county Sports & Exhibition Authority board appointed by the chief executive and mayor had passed a resolution in November 2005 offering development rights to any casino operator or private investor willing to commit to building a new arena.

As part of talks with the Penguins, state and local leaders already have offered the team most, if not all, of the revenue generated by a new arena. That could be worth as much as $20 million a year, according to the Allegheny Institute for Public Policy.

Mr. Peduto has said that adding redevelopment profits could be a key element other cities such as Kansas City, which is making an aggressive move for the team, would have trouble matching.

The latest developments come as state and local officials and the Penguins continue to push to complete an agreement to build a new arena after a "very positive" meeting last week.

Sources indicate the basic elements of Plan B -- $7.5 million from Mr. Barden and $7 million a year from a slots-financed state economic development fund -- are still in play. However, negotiators are looking to whittle the team's share from $4 million a year, including $1.16 million annually in naming rights, to $2.9 million, the same the Pirates contributed toward PNC Park.

Another key unresolved issue is how to get the Penguins more arena-related revenue or compensation in the interim period between a deal under Plan B and the opening of the new building in 2009.

The issue is important because the Penguins can move into a rent-free $276 million Sprint Center in Kansas City in October, at which point they could start tapping into lucrative arena revenue streams, not two years from now. In Kansas City, they would share revenues with Anschutz Entertainment Group.

Mr. Ravenstahl refused to discuss details of the talks yesterday.


--------------------------------------------------------------------------------

(Rich Lord contributed to this report. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

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http://www.pittsburghlive.com/x/pittsburghtrib/sports/penguins/s_487856.html

Billionaire investor the "power" in Pens' arena play

By Andrew Conte and Rob Rossi
TRIBUNE-REVIEW
Wednesday, January 10, 2007


When the principals gathered last week at the State Office Building, Downtown, to discuss a new arena for the Penguins, two powerful men greeted each other with a handshake forged by years of familiarity.
Gov. Ed Rendell and Penguins co-owner Ronald Burkle, a California billionaire, have worked together for years.

Burkle donated $50,000 to the Democratic National Committee when Rendell served as chairman. Two years later, Burkle gave $10,000 to Rendell's first gubernatorial campaign. According to federal records and news reports, Burkle has donated more than $1 million to Democrats and helped raised $50 million from others for the party.

"It is easier when you know who you're dealing with," said Philadelphia lawyer Alan Kessler, a leading Rendell fundraiser. "When you know who it is requesting a meeting on something like this, it helps in terms of credibility."





That relationship does not guarantee a sweetheart deal for the Penguins, Kessler said.

"Business is business," he said.

Neither Rendell nor Burkle would discuss their relationship for this article. David Morehouse, a Burkle confidant hired to help the Penguins get an arena, also declined to comment.

No one will discuss what happened during the 75-minute meeting last week. But it appears the deal will be better than Rendell's original offer, called Plan B. That $290 million proposal would build an Uptown arena financed over 30 years with $14.5 million a year in gambling money, plus undetermined contributions from the Penguins.

"Ed Rendell is one of the savviest governors and dealmakers in the country," said former Virginia Gov. Mark Warner, a Democrat. "When it comes down to negotiating terms, Ed Rendell will make the best deal possible for the commonwealth of Pennsylvania."

The anti-Cuban

Burkle sees himself as the anti-Mark Cuban, the wealthy, outspoken Mt. Lebanon-born owner of the Dallas Mavericks of the National Basketball Association, associates say.

Instead, Burkle keeps out of day-to-day team management and never would show up rink-side in a Penguins T-shirt or face paint, a spokesman said. In a rare moment, Burkle helped throw the coming-out party last season for forward Sidney Crosby by flying in Christina Aguilera to sing the national anthem at Mellon Arena.

But the billionaire has obliged whenever Mario Lemieux has asked for help. Burkle invested an estimated $20 million to save the team from bankruptcy in 1999 and last year helped negotiate the offer from Isle of Capri Casinos to build an arena with slots money.

Now Burkle is using his connections to help Lemieux keep his commitment to Pittsburgh. One strategy involves using a new arena in Kansas City as leverage to win a better deal in Pittsburgh.

"Ron is being loyal to Mario, and Mario is being loyal to Pittsburgh," said Frank Quintero, Burkle's spokesman.

For Burkle, it's all about making money and getting a return, said Matthew Miller, an associate editor at Forbes magazine who spent three years working on a Burkle profile.

"They're laying the groundwork for the right deal, not the quick sale," Miller said. "A potential buyer in Pittsburgh would probably pay a premium for the team, and Ron would be aware of that."

Favored subject

Burkle, 54, the son of a grocery store manager from Pomona, Calif., went from owning small grocery chains to controlling large ones. He manages four private equity funds worth $4 billion and holds shares in 35 companies, Forbes estimated.

With a personal fortune estimated at $2.5 billion, Burkle turns up in many people's sights.

His former wife has accused him of cheating her out of a fortune. And she said Burkle had her former boyfriend, an ex-convict, followed.

Over the past five years Burkle has been mentioned in the New York Post's Page Six gossip column more than 20 times. Internet media blog Gawker.com has written about Burkle more than 50 times since March.

Now Burkle wants to become a media mogul. In November, his investment firm, Yucaipa, made a bid for the Tribune Co., whose holdings include the Chicago Tribune and Los Angles Times.

In political circles, Burkle remains best known as an FOB, or friend of Bill Clinton.

"It is absolutely true that they are close, very close, friends," said David Matter, president of Oxford Development and Clinton's college roommate. "They are also business associates. The (former) president has great affection for Ron Burkle."

Forbes reported that Clinton has a permanent guest room at Burkle's Beverly Hills mansion and that Clinton has stayed in that room every time he has visited Los Angeles since 1992. Often when he travels, Clinton flies on "Air Ron" -- Burkle's luxuriously appointed 757 jet.

Not a hockey guy

Burkle and Lemieux met in Florida, said attorney Doug Campbell, who represented the former player during the Penguins' 1999 bankruptcy. They were introduced by Tom Reich, one of Lemieux's agents.

Soon after, Burkle agreed to join Lemieux's bid for a team ownership group.

"He wasn't a hockey guy," Campbell said. "But he expressed an interest, and that was pretty significant because we needed to raise $50 million and getting him was the foundation for the reorganization plan."

Burkle's stake in the Penguins is thought to be $20 million, making him the lead investor. Lemieux put in $5 million cash and has a $20 million equity stake. While the popular Lemieux often serves as the franchise's public face, it's clear Burkle plays more than a passive role.

The Penguins' visit to Kansas City on the eve of talks in Pittsburgh bears the mark of classic Burkle deal-making, said Miller, the Forbes editor.

Burkle is a friend of Tim Leiweke, the president of AEG, which will operate the new Sprint Center arena in Kansas City. AEG offered the Penguins a partnership for arena revenues and free rent.

The Penguins' interest in Kansas City could strengthen the city's bid for a future franchise.

"(Burkle) certainly has a history of using political connections to further business deals," Miller said. "That's undisputed."



Ronald Wayne Burkle

Local ties: An estimated $20 million cash investment in the Penguins

Net worth: $2.5 billion (Forbes estimate)

Born: Nov. 12, 1952, in Pomona, Calif.

The skinny: Founder of Yucaipa Cos., a holding company that invests in supermarket and grocery chains. Former President Clinton, a close friend of Burkle, is an adviser to the company. Burkle reportedly helped raise $50 million for the Democratic Party in recent years. Has given more than $100 million to philanthropic efforts in the past 10 years. ... Divorced. ... Is a college dropout. ... Teamed with entertainment giant AEG in an attempt to return an NFL franchise to Los Angeles earlier this decade. ... Paired with fellow multibillionaire Eli Broad in an attempt to purchase the Tribune Co., which owns the Chicago Tribune and Los Angeles Times. ... Has been mentioned more than 20 times in the past five years on the New York Post's infamous Page Six. ... Celebrity associates include Clinton, actors Leonardo DiCaprio and Michael J. Fox, and hip-hop artist Sean "Diddy" Combs. ... In addition to his La Jolla mansion, he owns a noted Beverly Hills estate dubbed "Green Acres."

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Penguins' lease can be rent free next season
Other revenues also available if team exercises extension here
Friday, January 12, 2007

By Mark Belko, Pittsburgh Post-Gazette



The Penguins won't have to skate off to Kansas City to play in a rent-free arena next season. They can get the same deal at Mellon Arena.

Lost in the discussion over Plan B is that the Penguins can exercise a short-term lease extension for Mellon Arena this summer that would give them more control over building revenues without paying any rent, perhaps while a new facility is constructed.

Under the proposed extension, the Penguins would become master tenants of the arena in place of SMG, a property management group that specializes in running publicly owned facilities. SMG would become building manager.

With the change, the Penguins would stop paying rent to SMG, estimated at close to $2 million a year, and would have greater access to such building revenues as concessions and parking, for both hockey and non-hockey events. Those could generate close to $20 million in gross revenues annually.

But there are costs associated with such an extension as well, including a $5 million payment due to SMG when the switch is made. The Penguins also would pay SMG to manage the arena at an amount to be determined.

The arena management changes, negotiated as part of the team's 1999 bankruptcy filing, could give the Penguins interim relief during construction of a new arena, which won't be finished until at least 2009, assuming the franchise can reach a deal with state and local officials over funding.

They also could serve as the framework for a long-term lease for the Penguins in a new building. With gambling proceeds financing the lion's share of the construction, state and local officials have said they have the ability to offer the team virtually all arena revenues.

The Penguins have until next month to exercise a proposed one-year lease extension, but it's unlikely that they will sign on unless they have reached a deal with Gov. Ed Rendell, Mayor Luke Ravenstahl, and Allegheny County Chief Executive Dan Onorato on funding for a new arena.

The extension would kick in at the end of June, at the same time the team's current lease expires, leaving the franchise free to move elsewhere.

Mellon Arena is the oldest venue in the National Hockey League, and the Penguins have long insisted that they need a new home if they are to stay competitive with other franchises.

Marc Ganis, president of Sportscorp Ltd., a Chicago sports business consulting firm, said a Mellon Arena lease extension, even under more favorable terms, would work "only on an interim basis."

Even if the team is getting all of the arena revenue, it's "still playing catch-up" compared to clubs in newer, bigger facilities that generate more revenue.

"[An extension works] only as an interim step and only if they have a new arena deal or expect a new arena deal shortly. It is not something you would look at on a long-term basis, just as a bridge," he said.

Although the Penguins wouldn't have to pay rent in the switch with SMG and would get most arena revenues, including parking, they would be responsible for the building's operating costs, which is not unusual for teams that have control over money streams.

As part of the deal negotiated in the 1999 bankruptcy, the Penguins also would have to make the $5 million lump sum payment to compensate SMG for building assets and for the change in management. SMG originally was to serve as master tenant until 2012.

The $5 million payment would be in addition to a management fee paid to SMG. The amount is not known but is believed to be in the hundreds of thousands of dollars.

The $5 million payment also may have to be accounted for in some fashion in the negotiations on a new arena. Even if a deal is reached, the Penguins still would have to play in Mellon Arena for at least two more seasons and most likely would want building revenues and the same rent-free offer they have from Kansas City, which opens the $276 million Sprint Center in October.

Neither the Penguins nor SMG would comment about a possible extension on the arena lease. Mr. Onorato also wouldn't talk about a possible extension yesterday, saying through a spokesman the issue is related to the Plan B negotiations on which he has not been commenting.

State and local officials have been working diligently to put together a deal under Plan B after a meeting last week between Mr. Onorato, Mr. Rendell and Mr. Ravenstahl and Penguins owners Mario Lemieux and Ron Burkle.

They would like to reach an agreement before the end of next week. The Penguins have said they want to make a decision by early February between Pittsburgh and Kansas City.

Under the original Plan B, the Penguins were required to make an upfront payment of $8.5 million and contribute $4 million a year, including $1.16 million annually in naming rights, toward the construction.

However, state and local leaders presented a somewhat sweetened version last week. Although the exact details aren't known, the Penguins' annual contribution likely will end up closer to $2.9 million, the same the Pirates paid toward PNC Park.

The $8.5 million payment may be accounted for in the sale of the old St. Francis Central Hospital on Centre Avenue to the city-county Sports & Exhibition Authority, which needs it as part of the new arena site. The Penguins purchased the property for $8 million.

Mr. Ganis sees the Penguins remaining in Pittsburgh, assuming they can reach an arena deal with very little capital costs to the team and decent revenue streams.

Despite the much heralded rent-free offer in Kansas City, Mr. Ganis views it as an "above average deal and that's it. The reason for that is it's not a great market.

"As it stands right now, I don't see it as a great relocation opportunity other than a building being under construction right now. But it's a thoroughly mediocre market," he said.

Another factor that could work against Kansas City is that naming rights already have been accounted for and flow to Anschutz Entertainment Group. The Penguins would have the ability to cut their own deal in Pittsburgh, one likely to generate at least $2 million a year for the team.

Prudential announced this week it would pay $105.3 million over 20 years to put its name on the New Jersey Devils' new arena, although no one expects a bid that high for the Pittsburgh rights.


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(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

[Wheelingman04]

It is looking more and more like the Penquins are going to stay in Pittsburgh. I am so happy about that. I am a diehard Penquins fan.

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Rendell to meet today with Pens on arena
Thursday, January 18, 2007

By Mark Belko, Pittsburgh Post-Gazette



Gov. Ed Rendell is expected to meet with representatives of the Penguins this evening to try to close in on a deal to fund a new arena and keep the team in Pittsburgh under a long-term lease.

Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl likely will join Mr. Rendell at the session. It's uncertain whether Penguins owners Mario Lemieux and Ron Burkle will be among those representing the team.

The meeting comes amid a growing sense of optimism among state and local officials that an agreement to keep the Penguins in Pittsburgh is moving closer to completion.

No one is predicting, however, that a final accord will be announced as part of this evening's gathering.

"I think they're getting closer to a deal," said state Sen. Wayne Fontana, a board member of the city-Allegheny County Sports & Exhibition Authority, which has been involved in the talks. "I'm confident that progress is being made."

Mr. Fontana is not expecting tonight's meeting to produce a final agreement.

"I suspect there's going to have to be some conversation with the [sports authority] even after they come to some conclusion," he said. "I don't expect it to conclude [today], but on the other hand I'm anticipating they will get closer to the end."

The Penguins have repeatedly declined comment on the talks.

The two sides are trying to work out a deal under Plan B, Mr. Rendell's funding formula for a new arena. It originally called for $14.5 million a year in contributions from slot machine gambling in Pennsylvania, plus $4 million a year from the Penguins, including $1.16 million annually in naming rights.

The Penguins annual contribution is expected to end up closer to $2.9 million, however, and a proposed $8.5 million upfront payment likely will be covered by the sale of the team-owned St. Francis Central Hospital to the Sports & Exhibition Authority, which needs it as part of the new arena site.

"What I sense is a positive tone" out of Mr. Onorato, Mr. Ravenstahl and Mr. Rendell, County Council President Rich Fitzgerald said. "They feel optimistic that it's got a good chance."

He said he has been told that no tax dollars will be part of any funding plan.

The Penguins want to decide by the end of the month whether to stay in Pittsburgh under a new arena deal or move to Kansas City, where the $276 million rent-free Sprint Center will be ready next fall.

The team's Mellon Arena lease expires at the end of June.

In Pittsburgh, a new arena won't be ready until 2009 at the earliest. As a result, the Penguins are hoping to secure an interim agreement that would give them a greater share of Mellon Arena revenues.

The team has available to it a proposed lease extension that would allow it to play rent free at Mellon Arena next year and control most building revenues. It would require an upfront payment of $5 million to SMG, which currently manages the facility.

Today's session will be the first since Jan. 4, when Mr. Lemieux emerged from a "very positive" meeting with the three elected leaders, optimistic about the prospects for keeping the team here.


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(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

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Penguins meeting ends with no deal
Two sides plan more talks; casino owner Barden sits in
Friday, January 19, 2007

By Mark Belko, Pittsburgh Post-Gazette

A late-night meeting aimed at working out a deal that would keep the Penguins in Pittsburgh began with a stir but ended without an agreement and with very little comment from the participants.

The meeting, convened by Gov. Ed Rendell, was held at the State Office Building, Downtown. It got under way about 9:20 p.m., 20 minutes later than scheduled, due to the governor's late arrival.

The stir was caused by the arrival of Don Barden, the Detroit businessman who last month was awarded the sole slots casino license for Pittsburgh.

Mr. Barden joined a group of state and local officials, including Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl, who are trying to put together a financial package for a new arena that would keep the Penguins in Pittsburgh.

The meeting lasted about 90 minutes before Penguins representatives, including co-owner Ron Burkle and team President Ken Sawyer, left shortly before 11 p.m. without commenting to a large group of reporters waiting outside.

The contingent of state and local officials remained inside the building for more than an hour before Chuck Ardo, a spokesman for Gov. Rendell, emerged to say that more negotiations are planned.

Mr. Ardo said the two sides plan to hold more meetings, but said no specific date has been set.

"We hope to be able to work out a deal at some point in the near future," Mr. Ardo said.

Asked when the talks would resume, he said it would happen "as soon as possible."

A short time later, Mr. Ravenstahl and Mr. Onorato left the building without comment.

The significance of Mr. Barden's participation, which was not anticipated, was not immediately clear.

Before going inside, Mr. Barden said he came to the meeting to "observe and see if I can be helpful. I want to do everything I can to see that the Penguins stay in Pittsburgh."

The state Gaming Control Board on Dec. 20 awarded the sole slot machine casino license for Pittsburgh to Mr. Barden. He plans to build a Majestic Star casino in the Chateau neighborhood near the Carnegie Science Center.

Mr. Barden previously indicated he would not increase his commitment of $7.5 million per year to help finance an arena.

Upon his arrival, Mr. Onorato told reporters there was a "real possibility" that a deal could emerge from the meeting.

"We're coming down here to try to finalize this deal," he said.

"The important thing here is to get something done, if it's today, tomorrow or next week, as long as it gets done. Our goal is to keep the Penguins here and to get a deal that makes sense for everybody involved," he said.

Mr. Rendell declined to speak to reporters going into the talks.

Mr. Ravenstahl said he was "eagerly anticipating the talks" but refused to speculate on them.

Before entering talks with state and local officials this month, team leaders visited Kansas City, which is trying to get a hockey club to play in the new $276 million Sprint Center to open this fall.

The Penguins' lease at Mellon Arena, the oldest venue in the National Hockey League, expires at the end of June, leaving the franchise free to move. Kansas City is offering a rent-free Sprint Center and a share of revenues.

Mr. Lemieux said the Penguins would consider all options, including a possible relocation, after Isle of Capri Casinos Inc. lost its bid for the Pittsburgh casino license. The gambling operator had teamed with the club to put together a proposal that included $290 million in upfront funding for an arena.

Officials hope to craft a deal under Plan B, the formula concocted by Mr. Rendell to fund an arena. It calls for winning casino bidder PITG Gaming LLC to contribute $7.5 million a year for 30 years toward construction. Another $7 million a year would come from a slots-financed economic development fund.

Initially, the Penguins were asked to kick in about $4 million a year, including $1.16 million in naming rights, plus an upfront payment of $8.5 million.

The state, county and city presented a somewhat sweetened version at a Jan. 4 meeting, and it is believed that the Penguins' share will end up closer to $2.9 million a year.

The $8.5 million also may be accounted for in the sale of the former St. Francis Central Hospital on Centre Avenue to the city-county Sports & Exhibition Authority, which needs it for the site of the new arena. The Penguins purchased the property for $8 million in 2000.



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(Staff writer Rich Lord contributed. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

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Penguins souring on Plan B
Governor calls deal hard to beat, but team balks at splitting development rights, parking
Saturday, January 20, 2007

By Mark Belko, Pittsburgh Post-Gazette

Gov. Ed Rendell yesterday said the arena deal being offered the Penguins is better than others struck recently in the National Hockey League, but the team has balked at a proposal to share development rights and parking revenues with Pittsburgh casino backer Don Barden.

Another issue that has come up in the talks is $10 million the Penguins may owe Isle of Capri Casinos Inc., which lost to Mr. Barden in the bidding for the city's casino license.

According to Mr. Rendell, the Penguins agreed to pay that amount if Isle of Capri failed to win the casino license but the team still secured a new arena in Pittsburgh.

During an interview yesterday, Mr. Rendell, coming off a late-night round of negotiations with the team Thursday, said the Penguins' share of the arena financing would be a "fraction" of what Pennsylvania's other professional sports franchises -- the Steelers, Pirates, Flyers, Eagles, and Phillies -- contributed toward their new homes.

"I believe the offer we put before the Penguins is the best of any offer that's been made to any NHL team for a new [arena] in recent times and it's also by far the best of any offer made to any Pennsylvania professional sports team for a new stadium," he said.

Mr. Rendell added that the Penguins' share under a sweetened Plan B funding formula would be "significantly below" the 18 percent the Pirates paid toward the construction of the $260 million PNC Park.

The Steelers paid about 44 percent of the $281 million cost of Heinz Field. Under Plan B, the Penguins initially would have paid about 20.7 percent toward a $290 million arena.

An October Post-Gazette survey found that since 2000, NHL teams have contributed anywhere from nothing to 30 percent of the cost of building new arenas.

While the governor touted the proposed Plan B deal as hard to beat, the Penguins apparently felt otherwise during a 90-minute meeting Thursday that broke off without an agreement.

According to sources, team representatives, including co-owner Ron Burkle, were stunned when state and local officials proposed that the Penguins share development rights and parking revenues with Mr. Barden, who was a surprise visitor to the negotiations.

The team saw the proposal as a worse deal than it would get under an extension available next year at Mellon Arena, one that would allow rent-free use of the building and give the franchise control over all building revenues, including parking.

In addition to sharing parking revenues and development rights, the state, city and county also want the team to pay rent at the new arena, in excess of the roughly $2 million a year it pays SMG at Mellon Arena, sources said.

Team officials saw the latest proposal as a setback after a "very positive" Jan. 4 meeting, they said. They were surprised to see Mr. Barden, who was invited by Mr. Rendell, and the proposals for sharing development rights and parking revenues. They also felt the overall plan represented a retreat from the previous session.

Mr. Barden has committed to providing $7.5 million a year for 30 years toward a new arena under the Rendell-crafted Plan B, which also calls for contributions from the Penguins and a slots-financed state economic development fund.

The casino operator said Thursday night he joined the talks to "observe and see if I can be helpful. I want to do everything I can to see that the Penguins stay in Pittsburgh."

The Penguins declined comment on all aspects of the talks yesterday, saying in a statement that "we'll continue to explore all of our options."

One of those options is Kansas City, where the $276 million Sprint Center will open this fall. The Penguins are being offered a deal that includes free rent and a share of building revenues. It's likely that the team will explore that option more seriously in the wake of Thursday's meeting. The Penguins' Mellon Arena lease expires at the end of June.

Mr. Rendell said the proposal to share development rights is a result of a city-Allegheny County Sports & Exhibition Authority resolution passed in 2005 offering such rights to any casino operator or private investor who commits to building a new arena.

The rights would extend to authority-owned property that now includes Mellon Arena, which would be demolished if a new facility is built across the street. Since neither Mr. Barden nor the Penguins would fully fund a new arena, the authority is talking to them jointly, Mr. Rendell said.

"The way the revenue streams are, neither one is solely responsible [for funding an arena], so together they would probably qualify under the [authority] recommendations," he said.

Asked about the sharing of parking revenues, Mr. Rendell replied, "Parking is on the table for discussion."

Despite the objections by the Penguins, Mr. Rendell believes Plan B is still better than what Kansas City is offering because the team would have to share building revenues there. In Pittsburgh, they would get virtually all such revenues from hockey and non-hockey events, excluding the parking.

The governor said the $10 million payment to Isle of Capri has come up in the talks as a cost the Penguins would have to bear if they stayed in Pittsburgh as opposed to moving to Kansas City.

Isle of Capri spokeswoman Jill Haynes said the company "does not comment on alleged content of confidential business agreements." The team also said it would not comment "on private business deals."

In the aftermath of Thursday's session, it is clear that whatever optimism preceded it now has dissipated. The governor conceded the results of the meeting were mixed.

"We made progress on some things and went back on others and that's very common in negotiations," he said.

Asked where they had fallen back, he replied, "some of the requests for relief from the Penguins."

While the governor had hoped for more progress, he said he still thought an agreement was possible.

"I'm still hopeful but there's a lot of posturing that goes on. That's true in these types of negotiations. That's true in business negotiations. It's true in labor negotiations."

No new talks have been scheduled, but Mr. Rendell said he hoped for another meeting soon.


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(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.

[AaronPGH]

Ridiculous.

[Wheelingman04]

Can't they agree on anything. This is just crazy. It is a great deal for the Penquins.

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http://www.pittsburghlive.com/x/pittsburghtrib/sports/penguins/s_489817.html

Lemieux "very disappointed" over arena talks


By Andrew Conte and Rob Rossi
TRIBUNE-REVIEW
Tuesday, January 23, 2007


Pittsburgh's arena deal can't get much sweeter for the Penguins, two Allegheny County lawmakers said Monday.
"It seems like (team owners) keep waiting for it to get sweeter and sweeter," said state Sen. Wayne Fontana, a member of the Sports & Exhibition Authority. "Is this just a negotiating ploy to get more? If the deal in Kansas City or someplace else was better, they would have walked already."

Gov. Ed Rendell has "a little wiggle room" to change the offer but does not have a lot more to give, said Fontana, a Brookline Democrat.

"I don't think it's giving and taking and offering more," said Democratic state Sen. Sean Logan, of Monroeville, who also sits on the SEA board. "It's just finalizing the details and what the Pens will accept."





The remarks came as team co-owner Mario Lemieux said public officials have two to three weeks remaining to make a deal.

"The sooner the better," Lemieux said. "A few weeks ago, I said 30 days, and we're getting very close to that. Sooner or later, we're just going to make a decision and go with it. Whatever happens, happens."

A top National Hockey League official agreed.

"Obviously, from what I understand, they had a tough meeting last week, and we've talked about a short horizon and we need to get a resolution soon," NHL deputy commissioner Bill Daly said. "Hopefully, that creates emergency and they'll make some progress toward getting resolution."

Penguins co-owner Ronald Burkle met for almost two hours Thursday night with Rendell, Allegheny County Chief Executive Dan Onorato, Mayor Luke Ravenstahl and Detroit businessman Don Barden, who plans to open a North Shore slots parlor in March 2008. Barden's company won state approval to build the casino over Isle of Capri, which promised a new arena for its partner, the Penguins, if it won.

Lemieux said the meeting "wasn't very good."

"Our people were offended and very disappointed," Lemieux said.

Part of Thursday's talks focused on who would be allowed to develop the Mellon Arena site if the Penguins get a new facility. The SEA owns the land and had planned to give the development rights to the winner of Pittsburgh's slots license -- as long as the casino company helped pay for the new arena, Logan and Fontana said.

Barden has agreed to pay $7.5 million a year for 30 years toward the arena. The state would kick in another $7 million a year from a development fund backed with gambling money.

Under Rendell's original proposal, called Plan B, the team would have paid $8.5 million up front and $2.9 million a year, while forgoing $1.16 million in naming rights.

Team officials have been concerned about how much money they might lose by staying at Mellon Arena the next two seasons rather than moving to Kansas City, Fontana said.

Barden's presence at the meeting was unexpected. He took an active role in the talks, and when Burkle decided to end the negotiations for the night, Barden followed him out into the hallway for a private conversation.

"We're just trying to be helpful and do whatever we can to help this process along," said Barden's spokesman, Bob Oltmanns.

The Penguins' lease at Mellon Arena expires in June.

Daly said that league rules allow the NHL to legally prevent the team from relocating. However, Daly said the NHL would not keep the team from leaving Pittsburgh if a "viable arena plan" is not in place soon.

Penguins officials could visit Houston this week while attending the All-Star Game in Dallas.

Janis Schmees, executive director of the Harris County-Houston Sports Authority, said Houston officials are discussing a possible visit by the Penguins. She declined to provide details, and team officials offered no comment.

Les Alexander, owner of the National Basketball Association's Houston Rockets, twice attempted to lure an NHL franchise to the city, said Oliver Luck, president and general manager of Major League Soccer's Houston Dynamo franchise.

"I'd say that the NHL was definitely on the back burner, but always on the radar for Houston," Luck said.

The Rockets are the only major-league tenant for the Toyota Center, which opened in 2003 and seats 17,800 for the American Hockey League's Aeros, a minor-league affiliate of the Minnesota Wild.

Burkle and Lemieux visited Kansas City earlier this month. No new visits are planned. Officials there offered free rent and a share of revenues if the team moves into Sprint Center, scheduled to open in fall.



Andrew Conte and Rob Rossi can be reached at aconte@tribweb.com or (412) 765-2312.

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Thin ice: There's plenty of risk in the Pens leaving Pittsburgh
Tuesday, January 23, 2007

Pittsburgh Post-Gazette

It doesn't take a hockey fanatic or a business wizard to see that the Penguins would be as foolish walking away from Pittsburgh as Pennsylvania officials would be in letting the franchise skip town. That's why the serious tone that has surfaced in this stage of the arena talks is troubling to fans and nonfans alike.

After the initial negotiating session on Jan. 4 ended on a positive note for Gov. Ed Rendell, Allegheny County Executive Dan Onorato, Mayor Luke Ravenstahl and Penguins owner Mario Lemieux, last Thursday's meeting broke off without an agreement, and no new talking date has been announced.

Gov. Rendell sounded exasperated Friday that the Penguins hadn't yet accepted the terms of a new deal to stay in Pittsburgh, calling it "the best of any offer that's been made to any NHL team for a new [arena] in recent times and it's also by far the best of any offer made to any Pennsylvania professional sports team for a new stadium."

The Penguins, who have a competing offer that is trying to woo them to Kansas City, have been tight-lipped in their public comments and have maintained that they are only trying to get the best deal to help them be a competitive franchise.

Without a doubt, such a sure-fire agreement can be put together only in Pittsburgh, where the fan base is proven and has been devoted to this team through thick and thin. Not so in Kansas City, where three sports franchises -- one of them in hockey -- have departed in the last four decades: the Athletics of Major League Baseball in 1967, the Scouts of the National Hockey League in 1976 and the Kings of the National Basketball Association in 1985.

It could be that the Pittsburgh talks are at that bare-knuckle stage, where each side is trying to find out how far it can push the other and still get the most for itself. Neither side should take the other's good will for granted, however. Both sides have much to lose if a Pittsburgh lease agreement does not succeed.

If the Pens were to pull up stakes for Kansas City, they would play in an arena that, while new this fall, will not have been built to the team's specifications -- whereas a new Pittsburgh facility will be constructed with Penguins input from the turn of the first shovel. The franchise also will only share, not keep all, revenues from the building. The team also will be risking how hockey-crazy the Missouri folks will be in five, six or seven years.

On the other side of the table, the Pittsburgh region will have lost a major-league sports franchise that packs the arena on more than 40 dates a season, generating not only local excitement and national attention but also parking, restaurant and hotel business. All that activity, of course, results in tax revenue for the city, county and state. The impact of such a community loss on the election campaigns of the mayor and the county executive could be pivotal.

We understand the governor's impatience with team owners who have yet to accept terms that may be better than those given other franchises. But the competing offer for the Penguins in 2007 is not the lease under which the Philadelphia Flyers or the Pittsburgh Pirates live. It's the package put together by Kansas City to spirit Pittsburgh's hockey team away.

That's the deal Pittsburgh has to beat. That's the deal we believe Pittsburgh can beat.

[Evergrey]

http://www.post-gazette.com/pg/07023/756019-85.stm

Politician: 'Best deal is on the table'
Local official says next move is up to Penguins
Tuesday, January 23, 2007

By Mark Belko, Pittsburgh Post-Gazette

By Dave Molinari
Pittsburgh Post-Gazette
Despite the setbacks last week, a state senator familiar with the negotiations between the Penguins and state and local politicians remains confident that a deal can be made to keep the team in Pittsburgh.



But Sen. Wayne Fontana, a city-Allegheny County Sports & Exhibition Authority board member, insisted yesterday that the next move is up to the Penguins, arguing that the deal on the table is better than the one being offered by Kansas City, where a new arena awaits the team.

The SEA is assisting Gov. Ed Rendell, Mayor Luke Ravenstahl and county Chief Executive Dan Onorato in the talks.

"I feel confident that the best deal's on the table, no matter where they would go," Fontana said. "If they're holding out to get more, the question becomes how long they're going to hold out before they say it's a done deal."

Penguins owner Mario Lemieux, speaking yesterday at NHL All-Star Game festivities in Dallas, said that the team is unhappy with the state and local officials' proposal for a new arena.

"I wasn't [at that meeting Thursday], but we were very disappointed," Lemieux said. "As always, we're going to go out and explore our options. When we get a deal that we like, we'll sign it."

Lemieux indicated that the team won't wait too much longer to decide what it will do after this season.

"The sooner, the better, not only for us, but for the league," he said. "They need to know where this team is going to play next year.

"A few weeks ago, I said 30 days. I think we're getting close to that. Sooner or later, we're just going to make a decision and go with that."

The Penguins are upset over a proposal that would require them to share development rights near Mellon Arena and parking revenues with Pittsburgh casino winner Don Barden.

As part of his winning bid, Barden has proposed a $350 million redevelopment of the lower Hill, including the Mellon Arena property.

Team officials believed the proposals represented a retreat from an earlier bargaining session Jan. 4. They saw the proposed deal as worse than a lease extension available next year at Mellon Arena that would give them control over all revenue, including parking, which generates more than $2 million a year.

Under the extension, they would play rent-free at Mellon Arena. The new arena proposal included a provision for rent in excess of $2 million a year, although it is unclear whether that would count as the Penguins' contribution toward construction.

No new talks have been scheduled, although the sides are still communicating and exchanging information, a source said yesterday.

But given what happened last week, the team likely will step up talks with Kansas City and might explore options in other cities as well. Their Mellon Arena lease expires at the end of June.

Asked about the chances of Kansas City coming strongly into the picture or the Penguins making another visit there, Lemieux said, "No comment." Three times.

Asked about Kansas City itself, Lemieux said, "The one visit we had with local leaders was very positive, with the corporate support, having the [luxury] boxes sold out."

Despite the Penguins' objections, Fontana believes the deal before the team is better than the rent-free offer in Kansas City for the use of the new $276 million Sprint Center, where they would share the building revenue. The team would keep all arena revenue, excluding parking, in Pittsburgh.

"It gets frustrating when you meet and don't come to a conclusion, especially when everyone who has analyzed the proposal says it's a better deal in the long run than what Kansas City is offering. You wonder what's holding it up then," Fontana said.

Rendell has said that the deal being offered the team under Plan B is better than others struck recently in the National Hockey League. He also said the team's share of the construction cost would be a "fraction" of what other Pennsylvania sports franchises put into their stadiums or arenas.

The Plan B formula calls for Barden to contribute $7.5 million a year for 30 years toward construction. Another $7 million a year would come from a slots-financed state development fund. The Penguins' contribution started at $4 million a year, including $1.16 million annually in naming rights, plus $8.5 million upfront.

It is now believed to be lower than the $2.9 million a year the Pirates committed toward PNC Park.


--------------------------------------------------------------------------------

(Shelly Anderson contributed to this report. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

[Evergrey]

one of the most interesting articles yet on the developments... click the link to hear some audio files


http://www.post-gazette.com/pg/07024/756308-85.stm

Rendell may ask NHL's help to keep Penguins here
Says deal offered team is so good he may urge league to block move
Wednesday, January 24, 2007

By Mark Belko and Shelly Anderson, Pittsburgh Post-Gazette



Gov. Ed Rendell is so confident of the arena deal on the table for the Penguins that he will ask the National Hockey League to block a move if the team tries to relocate.

However, meeting with reporters yesterday in Pittsburgh, Mr. Rendell stressed that he does not want it to come to that, adding he still is hopeful of working out an agreement that will keep the franchise here.

In Dallas for the All-Star Game, NHL Commissioner Gary Bettman expressed the same hope, but warned that time is running out.

"I suppose as long as they're talking, that's a good thing, and our goal, our hope, is that the Penguins stay in Pittsburgh. But that's got to become a reality with some hard decisions made locally," he said.

Mr. Rendell's statements came amid reports that team officials this week may visit Houston, which wants an NHL franchise, and in response to comments Monday by Penguins owner Mario Lemieux, who said he was "very disappointed" with the results of a bargaining session between state and local politicians and the team last week.

"We do not want to have to go to the NHL board of governors. We want to conclude this deal and we want to continue to work toward that goal. But we would have no alternative [but to go to the board] given the deal," Mr. Rendell said.

Under NHL bylaw 36, the NHL can block a move to another city if there is a plan to make the team viable. Among the considerations is whether the club has received a "publicly financed arena, special tax treatment, or any other form of public financial support."

Asked if the NHL would permit the Penguins to move, Mr. Bettman said, "We love Mario, but we're going to have to evaluate any potential transaction on the merits. That's what the board does."

Before allowing a relocation, Mr. Rendell said he believes the league would have to take into account the team's tremendous fan base in Pittsburgh and a "measurably sweetened Plan B" for funding a new arena.

Mr. Rendell reiterated his belief that the deal on the table is better than any of the other professional sports teams in Pennsylvania has received. He said the Penguins share of the construction costs would be "substantially less" than the 18 percent the Pirates put in to PNC Park.

"With the fan base and the deal we offered, it should be a slam dunk for the Penguins to stay here," he said.

Plan B counts on a commitment of $7.5 million a year for 30 years from Pittsburgh casino winner Don Barden and $7 million a year from a slots-financed state economic development fund.

The Penguins originally were called to contribute $8.5 million upfront and roughly $4 million a year toward construction, although the annual amount now is believed to be far lower than the $2.9 million a year the Pirates committed for their park.

Mr. Rendell said he also has agreed to put some state funding into the deal in recognition of both the losses the Penguins have incurred while waiting for a new arena and the fact the team could be playing in a new arena in Kansas City next fall.

The Penguins' Mellon Arena lease expires at the end of June, leaving the team free to move.

But even with the sweeteners, it doesn't seem as if a deal will be easy.

The Penguins are upset with proposals to share development rights near Mellon Arena and parking revenues with Mr. Barden, who has pitched a plan for a $350 million redevelopment of the lower Hill. They also don't like a proposal to pay in excess of $2 million a year in rent when they can get Mellon Arena rent free under a lease extension available next year.

On the other hand, the governor said the Penguins "keep coming up with new requests" in the negotiations. He said the team wants the state, city and county to "make up" $10 million the franchise could owe losing casino bidder Isle of Capri if it gets a new arena deal in Pittsburgh.

He said meeting that demand "doesn't make any sense."

"I'm not sure I would have ever signed that contract. That doesn't sound to me like such a great deal," he said.

The Penguins, he added, also want the state, city and county to "fill the gap" in terms of a proposed 10-year advertising deal they had with Isle of Capri. Mr. Rendell said he has countered with an offer of state tourism dollars to advertise the new arena, but can't do more.

"We can't reconstruct Isle of Capri," he said.

He also disclosed that if the Penguins were to leave Pittsburgh, they could be forced to pay a "significant penalty" -- believed to be about $10 million -- to SMG, the arena master tenant.

The Penguins declined comment on all aspects of the talks yesterday. Mr. Lemieux said Monday "we're going to go out and explore our options. When we get a deal that we like, we'll sign it."

No new talks have been scheduled. Asked if the NHL would intervene in the negotiations, Mr. Bettman replied, "At the right time, if we thought it would make sense to get involved, we would. But right now, I think it's most important that this is being done by the ownership of the club."

For NHL purposes, the Penguins must decide in a "matter of weeks" where they will be playing next year, he added.

"Time is of the essence, but we don't want to portray urgency today. It's urgent, but it's not imminent. It will be shortly," he said.

In Kansas City, which is seeking an NHL franchise, the Penguins are being offered the rent-free use of the $276 million Sprint Center and a share of the building revenues.

There also has been speculation that team officials will visit Houston while in Dallas for the All-Star Game. However, Janis Schmees, executive director of the Harris County-Houston Sports Authority, which owns the Toyota Center where the Penguins would play, said there have been no "significant discussions" with the team and she's not aware of any visit being scheduled.

Mr. Rendell said he was as frustrated as Mr. Lemiuex in not being able to conclude a deal. He called Mr. Lemieux a "sports icon" and team co-owner Ron Burkle a "great friend."

"So this is tough. I'm negotiating against one guy who as a sports fan I idolize and the other guy who's been a good friend and a close supporter of mine," he said.

Even as the Penguins and state and local politicians haggle over Plan B, the city Planning Commission yesterday approved a proposal to demolish 11 buildings in the Fifth and Centre avenues corridor to make way for the new arena.



--------------------------------------------------------------------------------

(Dan Majors contributed to this story. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. Shelly Anderson can be reached at shanderson@post-gazette.com or 412-263-1721. )

[AaronPGH]

It makes me feel a lot better now with what Gary Bettman said in that article.

[Evergrey]

It makes me feel a lot better now with what Gary Bettman said in that article.

it also feels good to have Ed Rendell on our side... I just can't believe Rendell would be on the losing end of something like this

[themaguffin]

I seriously think that the Pens have played their cards. Now they look greedy. This stuff always appeared greedy to me, but my impression that the "IOC" demands will wake up many folks about the Pens greed.

[PhillyRising]

I seriously think that the Pens have played their cards. Now they look greedy. This stuff always appeared greedy to me, but my impression that the "IOC" demands will wake up many folks about the Pens greed.


I agree with the notion in today's Post-Gazette that the whole Kansas City deal is only a short term benefit to the team. Playing in a market that has already lost three teams does not bode well. They have to share arena revenues and they had zero input to what amenities are in the arena.

I don't think it's too much to ask the team to pay for some of the costs. The Flyers built two arenas (Spectrum and Wachovia Center) with a just a small amount of public funds mostly for infrastructure costs. If the Pens stay in Pittsburgh...they get to design an arena to their own tastes and build amenities they think their fans will enjoy. I think if they pay a little but get control of the operation of the arena in which they can generate revunue outside of the Pens home games...will bode far better for the team in the long run.

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http://www.post-gazette.com/pg/07024/756398-100.stm

Rendell optimistic after talking to Penguins owner
Wednesday, January 24, 2007

By Mark Belko, Pittsburgh Post-Gazette

Even as state and local politicians and the Penguins haggle over an arena deal, Gov. Ed Rendell disclosed today that he talked to team co-owner Ron Burkle last night and expressed confidence that an agreement can be reached to keep the franchise in Pittsburgh.

A day after threatening to take his case directly to the National Hockey League if the Penguins try to leave town, Mr. Rendell said this morning that he still believes an agreement is within reach. He said Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl also have talked to Mr. Burkle over the last few days.

"We're all optimistic that we can reach an agreement," he said after an appearance at an Oakland hospital.

"We want to reach an agreement. We think we're getting closer. We're hopeful."

Mr. Rendell said he and Mr. Burkle talked about "some of the issues that need to be narrowed a little bit and we both agreed to work on them." He said he expects to talk to him early next week about the Penguins situation. He said no formal negotiating sessions have been scheduled between the two sides.

Of the Plan B formula for funding a new arena, the governor said state and local officials "can still tweak this a little bit" but added that the deal, as now constituted, is better than any other professional sports team in Pennsylvania has received.

Despite the heated rhetoric over the negotiations the past few days, Mr. Rendell said his conversation with Mr. Burkle "was friendly" and that they "discussed everything."

"Look, Mr. Burkle is a great businessman. You don't accumulate the type of resources that he's accumulated without being a smart businessman. He's trying to get every advantage . . . We want to make sure the resources we devote to this are appropriate, not too much, not too little," he said.

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http://www.post-gazette.com/pg/07025/756612-53.stm

Rendell optimistic on Penguins deal
Softens rhetoric after talk with team owner Burkle
Thursday, January 25, 2007

By Mark Belko, Pittsburgh Post-Gazette



After a phone call Tuesday night with Penguins co-owner Ron Burkle, Gov. Ed Rendell expressed renewed confidence yesterday about reaching an arena deal that will keep the team in Pittsburgh.

A day after threatening to take his case directly to the National Hockey League if the Penguins try to relocate, Mr. Rendell disclosed that he had talked to Mr. Burkle about "some issues that need to be narrowed a little bit and we both agreed to work on them."

He said Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl also had talked to Mr. Burkle this week.

"We're all optimistic that we can reach an agreement," the governor said.

Mr. Rendell said he expects to talk to Mr. Burkle by phone again early next week, although no formal negotiating session has been scheduled. However, Mr. Ravenstahl said one could occur before the end of next week.

"I'm sure at some point next week you will hear from us as we continue to move forward, whether that's another formal meeting, or a decision one way or the other," the mayor said.

A meeting would be the first since talks broke off without an agreement one week ago. Penguins officials left upset over a city-county Sports & Exhibition Authority proposal to share development rights and parking revenues with Pittsburgh casino winner Don Barden.

While team officials haggle over details of an arena deal here, it doesn't appear that they will visit Houston this week while in Dallas for the NHL All-Star Game. There had been speculation they would travel to Houston, which is seeking a pro hockey team.

Representatives of Houston Mayor Bill White and the Harris County-Houston Sports Authority said they were not aware of any plans for a site visit.

Mayoral spokesman Frank Michel said the Penguins called earlier in the week and asked if Houston wanted to be on a short list of cities for the team if negotiations fell through in Pittsburgh. The city replied yes.

"That really was the extent of it," he said. "We understand there are negotiations going on [in Pittsburgh] and we also understand that the Penguins' intent is to try to stay there."

The Penguins' Mellon Arena lease expires at the end of June, leaving the team free to move. The team has talked to Kansas City about playing in the new $276 million Sprint Center next season.

The talk with Mr. Burkle came after days of heated rhetoric. Mr. Rendell said Tuesday he was so confident of the deal on the table that he would ask the NHL board of governors to block a move by the team.

He said the deal is better than those given to other professional sports teams in Pennsylvania and that Penguins' share would be a "fraction" of the $2.9 million a year the Pirates put into their deal under a "measurably sweetened" Plan B. The funding plan originally called for the Penguins to put in $4 million a year for 30 years toward construction, including $1.16 million annually in naming rights.

Mr. Barden is contributing $7.5 million a year for 30 years toward construction. Another $7 million a year would come from a slots-backed state economic development fund.

The governor said yesterday state and local officials "can still tweak [Plan B] a little bit." He described his conversation with Mr. Burkle, a friend and supporter, as "friendly."

"Look, Mr. Burkle is a great businessman. You don't accumulate the type of resources that he accumulated without being a smart businessman. He's trying to get every advantage ... We want to make sure the resources we devote to this are appropriate, not too much and not too little," he said.

Besides being upset over sharing development rights and parking revenue, the Penguins don't like a proposal to pay more than $2 million a year in rent at the new arena. They could get Mellon Arena rent free under a lease extension available next year.

According to the governor, the team also wants the state, city and county to "make up" a $10 million payment it owes losing casino bidder Isle of Capri if it gets a new arena in Pittsburgh. Mr. Rendell said yesterday "that's something we can't do anything about."

Listen to audio comments by Gov. Ed Rendell about discussions for a new arena at post-gazette.com.


--------------------------------------------------------------------------------

(Staff writer Rich Lord contributed. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )

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http://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_490170.html

Pens arena talks may pick up shortly

By Andrew Conte
TRIBUNE-REVIEW
Thursday, January 25, 2007


The Penguins and Gov. Ed Rendell are talking again.
Rendell said he had a "friendly" phone call with team co-owner Ron Burkle on Tuesday evening, and early next week they plan to resume negotiations -- perhaps in person -- on how to pay for an Uptown arena.

"We think we are getting closer," Rendell said Wednesday after appearing at an event in Oakland. "We're trying to do some things that will help the bottom line of the Penguins."

Allegheny County Chief Executive Dan Onorato and Mayor Luke Ravenstahl also talked with Burkle this week, Rendell said.





"I am not discouraged," Ravenstahl said. "I remain optimistic. Anytime you're negotiating a facility worth hundreds of millions of dollars it takes time, it takes negotiation, and it takes continued dialogue."

Penguins officials declined to comment on the arena talks. They are not expected to visit this week either Houston or Kansas City, places where the team could relocate. The Penguins' lease at Mellon Arena expires in June.

A meeting between team and public officials last week broke down over development rights for the Mellon Arena site and parking revenues at a new Uptown arena. Either one could be worth millions of dollars, experts said.

One issue is whether the Penguins would share development rights with Majestic Star Casino operator Don Barden, whose company will contribute $7.5 million a year for 30 years toward arena construction costs.

The 28 acres where Mellon Arena sits should be worth $12 million to $15 million, said Downtown developer Ralph Falbo. That's at a going rate of $100 to $125 a square foot.

When the Penguins and Isle of Capri Casinos sought to build an arena with gambling money, they partnered with Nationwide Realty Investors on a proposed $350 million redevelopment of the Mellon Arena site -- with offices, housing, entertainment venues and retail shops.

Barden also has talked about a $350 mililon development for the site.

"It was really a guestimate," said Michelle Chippas, Nationwide's marketing director. "We hadn't gone in there and done a lot of our research. It was based on a good market and having a casino as kind of an attraction, along with the arena."

With an arena alone, the Mellon Arena site might support commercial development and housing, said Ira Morgan, a Downtown commercial real estate investor.

"Depends on what they do," Rendell said. "A good developer and the rights can be worth tens and tens and tens of millions of dollars. A bad developer, and they could turn out to be a loss."

The parking revenues from 3,000 surface spaces around a new arena would be worth about $2.5 million a year after taxes and operating expenses, said Merrill Stabile, owner of Alco Parking. That includes parking for events and Downtown commuters.

If an operator built a garage for parking, however, the profits would have help pay the construction debt, Stabile said.

Public officials still have room to "tweak" the arena deal, Rendell said, but they cannot offer a lot more.

Under Rendell's original Plan B proposal, the Penguins would have paid $8.5 million up front and $2.9 million a year, while forgoing $1.16 million in naming rights. Rendell said the team's contribution has been significantly reduced. In addition to Barden's contribution, the state would pay $7 million a year from a development fund backed by gambling money.

Rendell said that National Hockey League Commissioner Gary Bettman might serve as a "mediator" to get an arena deal done.

"When Commissioner Bettman came to Pittsburgh, he made it clear that if an offer on a stadium was a good offer, given the strength of the fan base here, that he wouldn't approve a move," Rendell said. "And he shouldn't approve a move."

Rendell calls Burkle a "good friend" from their work together on Democratic politics, and he said the California billionaire seems to be trying to get the best arena deal possible.

"He's trying to get every advantage," Rendell said. "He'll keep trying. We just want to make sure the resources we devote to this are not too much and not too little."



Andrew Conte can be reached at aconte@tribweb.com or (412) 765-2312.

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http://www.pittsburghlive.com/x/pittsburghtrib/sports/penguins/s_490418.html

Lemieux's absence not a concern in arena negotiations

By Andrew Conte and Rob Rossi
TRIBUNE-REVIEW
Friday, January 26, 2007


When temperatures dipped into the teens and tempers flared over the Penguins' $290 million arena deal last week, team co-owner Mario Lemieux missed a meeting with public officials to hob-nob with celebrities at a swanky Bahamas resort.
The Hall of Fame former player, who later said his people were "offended and very disappointed" by the meeting, attended the Michael Jordan Celebrity Invitational golf tournament.

The resort -- Atlantis, Paradise Island -- touts itself as a destination of "legend, beauty and myth." The weekend included a celebrity poker tournament and four rounds of golf at a course with scenic views of the Atlantic Ocean.

As Gov. Ed Rendell and Pittsburgh leaders were facing off with Lemieux's partner, California billionaire Ronald Burkle, players in the golf tournament had an evening of scheduled "leisure." Other celebrities included Steelers quarterback Ben Roethlisberger, Yankees shortstop Derek Jeter and actor Michael Douglas.





Lemieux and Jordan have attended each other's charity golf tournaments.

"It's sort of a code of ethics with these guys," said Ryan Tollner, Roethlisberger's agent. "It's all a big fraternity. The general understanding is that if you are willing to attend mine, I'm willing to attend yours."

Penguins officials declined to comment on the arena situation, but spokesman Tom McMillan issued a written statement noting Lemieux's long-standing commitment to attend Jordan's charity event. The two have a reciprocal agreement that includes Jordan's commitment to attend Mario's annual charity tournament, he said.

"When we received the proposed meeting date during this time period, we had two choices: to delay the meeting until Mario returned, or to take the meeting and attempt to move forward on Pittsburgh arena talks as soon as possible," the statement reads. "Because time is of the essence, we chose to take the meeting. Although Mario was out of town, he was in constant communication with our negotiating team."

Burkle, until recently a behind-the-scenes leader of the Penguins' ownership group, has emerged as the main power broker for the team's bid to get a new Uptown arena.

Last week's talks broke up over concerns about development rights and revenue from a new arena. The two sides spoke again Tuesday and plan to talk early next week.

In Pittsburgh this week, Rendell called Burkle "the real owner of the team" and said he is "really driving the train."

Rendell said he was not disappointed by Lemieux skipping the latest arena meeting.

"Mario's probably never been involved in this type of negotiation before," Rendell said.

Marc Ganis, president of Chicago-based Sportscorp Ltd., said Burkle's previous dealings with Rendell should be viewed as a positive sign by Penguins fans -- even if the fans distrust the governor and a co-owner they don't really know.

"I can't imagine that Burkle has an interest in embarrassing Rendell, and Rendell certainly doesn't have an interest in dismissing Burkle," Ganis said.

Rendell and Burkle have worked together for years in Democratic politics. Burkle gave $10,000 toward Rendell's first campaign for governor.

"This is tough," Rendell said. "I'm negotiating against one guy who as a sports fan I idolize, and the other guy has been a good friend and close supporter of mine."

The first sign that the two sides have reached a deal will be when Lemieux reappears as the face of the franchise, said Frank Gamrat, senior research associate for the Allegheny Institute for Public Policy, a Castle Shannon think tank.

"Burkle and (team president Ken) Sawyer will handle the actual negotiations, but Mario will come in for signing on the dotted line for the contract," Gamrat said. "Diehard fans think the public can't do enough for Mario."

Ganis advised local officials on the late-1990s negotiations that secured stadiums for the Steelers and Pirates. He was approached by officials a few weeks back to advise on this arena deal, but declined because of other commitments.

It's no big deal that Lemieux didn't attend the last arena meeting, Ganis said.

"He does not have a reputation as being the smartest businessman in the room," Ganis said. "He won't be bringing great credibility to the financial aspect of these talks. Mario is the face of the organization, but it's not the be-all and end-all that he be present for the negotiations.


"Ron Burkle is perceived as having that great financial expertise that Mario is perceived to lack. That is why you are starting to see him dealing directly with Rendell."

Lemieux appeared to enjoy his time at Paradise Island's Ocean Club Golf Course last week, said Andy North, who attended as part of ESPN's coverage of the event, which the network will air next month.

"He did not play as well as he would have liked," said North, a former two-time U.S. Open champion. "He wasn't real happy with his game because he hasn't played in a while.

"He's got a few issues there in Pittsburgh trying to get a building done."



Andrew Conte and Rob Rossi can be reached at aconte@tribweb.com or (412) 765-2312.

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http://www.post-gazette.com/pg/07033/758892-61.stm

Barden's casino was the 'best fit' for city, state
Pa. gaming board also cites PITG owner's charisma as factor in winning bid
Friday, February 02, 2007

By Mark Belko, Pittsburgh Post-Gazette



Businessman Don Barden won over the Pennsylvania Gaming Control Board with a casino proposal that represented the "best fit" for Pittsburgh and a personal charisma that spoke volumes about his dedication to the project.

In a 73-page opinion released yesterday, the gaming board said Mr. Barden and his company, PITG Gaming LLC, ended up winning the Pittsburgh slot machine license because his North Shore casino proved to be the "best overall project" for the city and the state.

At the same time, the board said one of his competitors, Forest City Enterprises, was hurt by traffic concerns at its Station Square site. It also had worries about the impact of Isle of Capri's proposed Uptown casino on the adjacent Hill District.

The board also went to considerable length to address the issue that dominated the debate over the Pittsburgh casino: the Isle of Capri pledge to provide $290 million for a new arena for the Penguins and other events.

In its opinion, the board said the alternative Plan B funding formula crafted by Gov. Ed Rendell "provided some degree of neutralization" to the Isle of Capri commitment. Plan B relied in part on promises by the two other casino bidders to provide $7.5 million a year for 30 years toward construction.

While the issue may have captivated the public, the board added in strong terms that it wasn't responsible under the state gambling law for keeping the Penguins in Pittsburgh.

"While the board is not unsympathetic to Pittsburgh's hockey fans who fear the Penguins moving to another locale or to the local businesses which benefit from the Penguin's presence, the board is not beholden to award a license upon that basis if the board believes ... another project is better for gaming, the commonwealth and the public based upon all of the factors considered under the act," it said.

"A lot of us became tired of hearing how we were the ones to save the Penguins for Pittsburgh," board member Jeffrey Coy added at a news conference. "That was not the principal effort for us."

The board also said testimony during licensing hearings did not provide "the degree of confidence it desired" that the agreement between Isle of Capri and the Penguins would keep the team in Pittsburgh. The last-minute decision by Canadian businessman Jim Balsillie to drop his purchase of the team "provided further uncertainty as to IOC's impact on the future of the Penguins," the board said.

The release of formal "adjudications" and orders involving the Dec. 20 award of licenses for casinos in Pittsburgh, Philadelphia, the Poconos and Bethlehem kicks off a 30-day period for losing applicants to appeal directly to the state Supreme Court.

Whether either Forest City or Isle of Capri will do so remains to be seen. Isle of Capri officials had no comment yesterday. Abe Naparstek, Forest City director of development, said, "We're in the process of reviewing [the opinion]."

In a statement, Mr. Barden, not surprisingly, praised the board's opinion, saying members "stayed true to their charge, carried out the law thoroughly and precisely, and were not distracted by any extraneous circumstances."

"On a personal note, I'm honored that the board has entrusted our company with this license. I can assure the board and the people of Pittsburgh that we will make them proud of this decision," he said.

However, until the appeal period ends, Mr. Barden won't be able to complete his purchase of the 17-acre site on which his casino will be built or start construction.

While he initially vowed to have the casino open by March 2008, his spokesman, Bob Oltmanns, said yesterday that date could slip, given how long it has taken the board to issue its formal opinions and the appeal period. He said it now could be "somewhere between March and May, contingent on when the license is awarded."

"Our target is still 14 months from the day of licensing," he said.

Regardless of the opening date, the board, in its opinion, said PITG Gaming's proposed Majestic Star casino, to be built on the Ohio River shore in Chateau, represented the best bet for Pittsburgh.

Overall, the casino plan "had a facility design, location on the North Shore and ability to mitigate traffic concerns that the board found to be of superior quality for the Pittsburgh region," the opinion stated.

"The board finds that PITG's facility design was, in the board's opinion, better than IOC's facility, that PITG's North Shore location boasts great potential for the rebirth of development and economic stimulus in that area and that PITG's ability to manage traffic was much better than that of [Forest City's] Station Square Gaming."

The board also lauded Mr. Barden's personal commitment to the project and the Pittsburgh community and to diversity, one of the factors to be taken into account under the state's gambling law. Mr. Barden has said the city casino would be the "flagship " of his Majestic Star chain.

"The calm intensity which Mr. Barden brought to this project and his undeniable dedication to make this project a success for all of Pennsylvania speaks volumes of his character and suitability for this license," the board stated.

While Mr. Barden is the only African-American casino owner to be awarded a license in Pennsylvania, board member Sanford Rivers, who also is African-American, said race was not a determining factor in the award.

"It was his package, his presentation, that impressed us," he said.

From the start, traffic was the biggest issue facing the Station Square site, with a mountain on one side and a river on the other, and the board said it was "unconvinced" the remedies proposed by Forest City to deal with it would be sufficient.

At the same time, it also had concerns about potential traffic congestion at the Isle of Capri casino site adjacent to the Hill. It feared casino traffic and that from the proposed arena next to it would create more congestion and "would likely cause detrimental effects to the surrounding neighborhood."

PITG Gaming's location, it said, had an advantage over the other two sites in that it did not border a residential neighborhood. It also said the $11 million to $12 million in traffic improvements Mr. Barden has proposed "will assist in easing congestion."

While the Steelers and Pirates have complained about the potential for more congestion and parking problems with a casino so close to Heinz Field and PNC Park, the board did not put much stock in those concerns.

If anything, a 4,100-space garage to be built by Mr. Barden should mitigate parking woes, the board said. It also didn't think a casino within several hundred yards of Heinz Field or PNC Park would have any detrimental impact on either of the teams or their leagues.

As for revenues, one of the most important components of the slots law, a gaming board task force projected that the Majestic Star and Isle of Capri casinos would generate about $482.2 million a year, compared to Forest City's $426.3 million.

While Forest City had projected revenues as high as $535.6 million, based on a rewards program offered by partner Harrah's Entertainment, the board said it was not convinced that the effect "would be as significant in Pittsburgh" as the bidder had argued.

The board also took issue with a plan by Forest City to eliminate nightclubs and restaurants on the east side of its complex to make way for a temporary casino, saying that would offset jobs created by a slots parlor.

On the other hand, it said the addition of a casino to the North Shore "has the potential to spur other commercial development in that area and make it a year-round tourist destination rather than its current seasonal nature depending in large part on sports venues."

During their news conference, several board members, including Chairman Tad Decker, said they never felt any political pressure to award a license one way or the other.

"I'm a friend of Ed Rendell and I didn't talk to him for six months," Mr. Decker quipped.

Mr. Barden and other casino operators will be eligible to receive their slots license upon payment of the $50 million license fee, which can happen either four months after all appeals have been exhausted, or 10 days prior to the casino's opening, whichever is sooner, spokesman Doug Harbach said.


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(Tom Barnes contributed to this story. Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262. )