Secured Financing Could Help Keep Penguins In Pittsburgh

Officials Say Arena Financing Is In Place For Penguins

City of Pittsburgh and Allegheny County (PA) officials announced that they have “firmed up financing for a new arena, a move they said should help keep the Penguins in Pittsburgh,” according to Mark Belko of the PITTSBURGH POST-GAZETTE. Forest City Enterprises and PITG Gaming, both of which are bidding for a casino license, committed to providing $7.5M a year for 30 years toward the arena, “contingent on winning” the license. Also, Pennsylvania Gov. Ed Rendell has pledged $26.5M in state funds for site acquisition and preparation, and the Pittsburgh Sports & Exhibition Authority (SEA) “already has started negotiations with 10 property owners in Uptown to secure land for the building.” Onorato believes that Pittsburgh is now “in position to keep the Penguins, regardless of who ends up buying the team.” Penguins President Ken Sawyer “again urged local leaders to get behind” the team’s partnership with Isle of Capri, which is also bidding for the casino license, saying it is “by far the best one for the city and the region.” Onorato said he informed NHL Commissioner Gary Bettman “that the mayor and I and the SEA are prepared to get this done and that if he had any doubt that there was any commitment from the local elected officials, he can wipe those doubts away right now” (PITTSBURGH POST-GAZETTE, 7/14). Onorato said that the terms of an arena lease must be negotiated with the eventual buyer. He added that the lease would be “similar to the Pirates’ agreement at PNC Park ... except that it would require the Penguins to forgo $1.1[M] a year in naming rights” (TRIBUNE-REVIEW, 7/14).

VEGAS: Las Vegas Mayor Oscar Goodman “denied a report” Thursday on the Web site of Pittsburgh’s WPXI-NBC that said he was ready to make a deal to bring the Penguins to his city. Goodman: “I told [Pittsburgh Mayor Bob O’Connor last month] I hope the Penguins stay in Pittsburgh. I have not had any discussions whatsoever that would even suggest the Penguins move here” (LAS VEGAS REVIEW-JOURNAL, 7/14).