Rendell Announces Plan B
Well, Governor Ed Rendell finally unveiled his Plan B to get the region a new all purpose arena. The Governor is calling it a "Plan B" in the event that the Penguins and their partner Isle of Capri, do not win the Stand Alone Slots License for Pittsburgh. This is all fine and dandy, believe me...I am the first to point out that any time politicians are talking about building an arena in Pittsburgh it is a good thing. However, there is no guarantee in the plan. It is a lot of speculation, reshuffling of funds, counting on commitments that have not been made etc.
Rendell's plan calls for $293.5 million is borrowed funds, $13 million in interest that could be earned while the funds are in a bank, and a $8.5 million commitment from the Pittsburgh Penguins. The governor's plan calls for the borrowing to be repaid over 30 years. The repayment would break down like this: $7.5 million annually from whoever wins the slots license, $7 million annually from a slots-backed state development fund, $2.9 Million in yearly rent from the Pittsburgh Penguins, and $1.2 million in naming rights for the new arena.
Here is the catch. This plan makes it seem as if the governor is working hard to keep the Penguins in Pittsburgh, but the plan calls for a lot of different people to pay a lot of different things. This plan is based on promises that haven't been made or secured, naming rights that haven't been sold, rent that the anchor tenant hasn't yet agreed to pay, plus interest that no one can calculate for certain at this time. This is the great alternative to the Pittsburgh First, Penguins, and Isle of Capri plan. This plan could work, but it is in no way better than the slots proposal that has been presented.
The Governor is banking on the fact that his last ditch effort to come forward with an arena plan will help salvage his political existence. I personally think that it is to little to late. This is all propaganda to put a positive spin on the fact that the slots license is very possibly being steered to Harrah's/Forest City. I am hoping that the gaming board still makes the right decision on this matter. The arena issue in Pittsburgh is becoming an important weapon in the governors race in Pennsylvania. Rendell's main competition, former Pittsburgh Steeler, Lynn Swann has come out in favor of the Pittsburgh penguin/Isle of Capri plan, calling it a Win, Win, Win situation. We will see if this makes a difference.
It is still unbelievable that this is even being debated. Let's remember, the Isle of Capri plan will cost the team, region, and taxpayers nothing. They have pledged $290 million, which is already secured through a reputable financial institution, just for winning the slots license. Exactly 90 days after getting the license, they will hand the Penguins a check in the above amount and construction planning can begin. The arena will be bought and paid for, free and clear. Plus, an area of the city in dire need of renovation will receive that much needed redevelopment. The Hill District will be revitalized, back when the Mellon Arena was built a big section of the Hill District was torn down.
It does seem like the arena is going to come to fruition, let's just hope that it is under the right terms and in time to save the Pittsburgh Penguins.
Rendell's plan calls for $293.5 million is borrowed funds, $13 million in interest that could be earned while the funds are in a bank, and a $8.5 million commitment from the Pittsburgh Penguins. The governor's plan calls for the borrowing to be repaid over 30 years. The repayment would break down like this: $7.5 million annually from whoever wins the slots license, $7 million annually from a slots-backed state development fund, $2.9 Million in yearly rent from the Pittsburgh Penguins, and $1.2 million in naming rights for the new arena.
Here is the catch. This plan makes it seem as if the governor is working hard to keep the Penguins in Pittsburgh, but the plan calls for a lot of different people to pay a lot of different things. This plan is based on promises that haven't been made or secured, naming rights that haven't been sold, rent that the anchor tenant hasn't yet agreed to pay, plus interest that no one can calculate for certain at this time. This is the great alternative to the Pittsburgh First, Penguins, and Isle of Capri plan. This plan could work, but it is in no way better than the slots proposal that has been presented.
The Governor is banking on the fact that his last ditch effort to come forward with an arena plan will help salvage his political existence. I personally think that it is to little to late. This is all propaganda to put a positive spin on the fact that the slots license is very possibly being steered to Harrah's/Forest City. I am hoping that the gaming board still makes the right decision on this matter. The arena issue in Pittsburgh is becoming an important weapon in the governors race in Pennsylvania. Rendell's main competition, former Pittsburgh Steeler, Lynn Swann has come out in favor of the Pittsburgh penguin/Isle of Capri plan, calling it a Win, Win, Win situation. We will see if this makes a difference.
It is still unbelievable that this is even being debated. Let's remember, the Isle of Capri plan will cost the team, region, and taxpayers nothing. They have pledged $290 million, which is already secured through a reputable financial institution, just for winning the slots license. Exactly 90 days after getting the license, they will hand the Penguins a check in the above amount and construction planning can begin. The arena will be bought and paid for, free and clear. Plus, an area of the city in dire need of renovation will receive that much needed redevelopment. The Hill District will be revitalized, back when the Mellon Arena was built a big section of the Hill District was torn down.
It does seem like the arena is going to come to fruition, let's just hope that it is under the right terms and in time to save the Pittsburgh Penguins.
posted by Bmetzer66 at 1:30 PM
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