Hell Freezes Over; Slow Eddie Rendell Does NOT Throw Tax Money at a Problem

There may be hope for us yet, Penguin fans. But do not hold your breath.

Swann backs Pens' plan

Months ago, no public official would talk about a new arena for Pittsburgh.
Wednesday, Democratic Gov. Ed Rendell and Republican challenger Lynn Swann could not say enough. But their solutions are vastly different.
Rendell's "Pittsburgh Arena Now" plan for building an arena does not call for any tax dollars, relying instead on slot machine money and a contribution from the Penguins to pay down bonds worth $292 million.

The governor presented the plan to lawmakers last night, and plans to make public the details at a Downtown press conference this morning.

The slots money to pay the debt would include annual payments from whoever gets the license for a casino in Pittsburgh, as well as money from a development fund set up in the gambling law.

"There's a lot of wiggle room in the bill for economic development projects that are not specific," said Allegheny County Chief Executive Dan Onorato, who has been working on the details with Rendell and Mayor Bob O'Connor.

Swann yesterday endorsed a plan by the Penguins and the team's gambling partner, Isle of Capri Casinos, which has agreed to pay $290 million for an arena if it wins the license for a slots parlor in Pittsburgh.

Rendell has said his plan is an alternative, should Isle of Capri not win the license.

One key question is whether the other casino bidders -- Harrah's Station Square Casino and Majestic Star Casino, which would locate on the North Shore -- will respond to Rendell's plan by offering money for an arena. They have not promised any yet.

It would cost at least $19 million a year to pay the debt for a $290 million bond issue, based on a 30-year repayment and interest rate just below 5 percent. Isle of Capri projected payments of $20 million to $30 million a year on a 15-year bond.

The state will collect 5 percent of revenues from casinos for a statewide development fund, but the money for Allegheny County was earmarked for specific projects.

Onorato said slots money still could help build an arena. "But it all depends on how much money gets generated from the gaming," he said.
(Thanks to the Pittsburgh Tribune-Review for the heads up.)