HARRISBURG, Sept. 16, 2009 –State Senators Sean Logan and Wayne D. Fontana today called on the Pennsylvania Gaming Control Board to take steps to force the Rivers Casino in Pittsburgh to make its required $7.5 million annual payment for the city’s new arena.
In a letter to Board Chairman Greg Fajt, the lawmakers questioned the board’s previous decision ordering the Pittsburgh/Allegheny County Sports and Exhibition Authority (SEA) to negotiate with the casino on the payment.
“Fundamentally we have a concern over these “negotiations” because an agreement was already put in place in numerous documents including the Trust Indenture dated September 15, 2007, which is enclosed,” Fontana and Logan stated.
“Additionally, we are not sure what the SEA is to negotiate since Rivers owes the SEA $7.5 million per year for 30 years. And the SEA has already gone above and beyond by agreeing to allow Rivers to make bi-annual payments to the SEA instead of only one payment of $7.5 million per year as originally agreed to.”
Logan and Fontana, both SEA board members, want the Gaming Board to require the casino to fulfill its 30-year payment obligation.
“We will not allow Rivers Casino to further delay or walk away from its obligation at the expense of local taxpayers,” Fontana said.
With the General Assembly currently considering allowing table games at casinos, Logan and Fontana have warned that they would introduce legislation to block the Rivers Casino from offering table games unless it makes its annual $7.5 million payment.
“No one is asking them to pay more than what was agreed to,” Logan said. “We just want them to live up to the agreement that was made.”
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EDITOR’S NOTE: Following is the text of the letter to Fajt.
September 18, 2009
Greg Fajt, Chairman
Pennsylvania Gaming Control Board
P. O. Box 69060
Harrisburg, PA 17106-9060
Dear Chairman Fajt:
As you are aware, we are members of the Board of Directors of the Pittsburgh/Allegheny County Sports and Exhibition Authority (SEA), which is currently in Gaming Board ordered negotiations with Rivers Casino concerning the schedule of payments Rivers must make to the SEA for the construction of the new Penguins arena.
Fundamentally we have a concern over these “negotiations” because an agreement was already put in place in numerous documents including the Trust Indenture dated September 15, 2007, which is enclosed. Additionally, we are not sure what the SEA is to negotiate since Rivers owes the SEA $7.5 million per year for 30 years. And the SEA has already gone above and beyond by agreeing to allow Rivers to make bi-annual payments to the SEA instead of only one payment of $7.5 million per year as originally agreed to. However, Rivers continues to request conditions of the SEA in these new “negotiations” that the SEA simply does not have the authority to agree to. The conditions requested would have to be addressed by the Legislature and not the SEA.
By way of this letter, we are asking you and the members of the Gaming Control Board to act quickly to provide closure to this situation. We are hoping that the Gaming Board will protect the taxpayers’ interest in this matter and not that of Rivers.
We thank you in advance for your attention to this request.
Sincerely,
Senator Sean Logan
SEA Board Member
Senator Wayne Fontana
SEA Board Member
CC: Allegheny County Executive Dan Onorato
Mayor Luke Ravenstahl, Pittsburgh
SEA Board Members
Mary Conturo, Executive Director of SEA
Senator Jay Costa
Senator Jim Ferlo
Senator Jane C. Orie
Senator John Pippy
Senator Joe Scarnati
Senator Bob Mellow
Senator Dominic Pileggi
Senator Jane Earll
PA Gaming Control Board Members