The crashing credit market — which has affected Centaur’s casino plans — is now delaying Mahoning Township’s sewer line project

The township supervisors last night announced they will hold $8 million worth of sewer bids for 60 days, which is allowed by law. In that time, they want to meet with officials from Indiana-based Centaur Inc. to determine the status of Valley View Downs, the $455 million racetrack/casino complex proposed for Mahoning Township.

Last fall, Centaur was awarded the state’s final harness racing license, then applied for a casino license to operate up to 3,000 slot machines.

However, the investigation, the refusal of the Pennsylvania Gaming Control Board to award a conditional license, and the collapse of the credit market caused Centaur to default on an almost-$1-billion loan. The project is on hold until Centaur obtains financing, new partners or explores alternatives that may include selling its property, harness license or interest in the project.

The supervisors also plan to negotiate with the contractors to determine if they will extend the time they will hold their bids. In addition, the supervisors said, funding is not yet in place.

Gary Pezzuolo, supervisor chairman, said bids had been opened Sept. 30 for the sanitary sewer project. The apparent low bidders are:

•A.P. O’Horo of Youngstown, general contractor, $6,117,000, lowest of four bids

•Intertech of Lowellville, Ohio, electrical contractor, $1,683,300, lowest of five

•Central Heating and Air Conditioning of New Castle, $212,327, heating contractor, lowest of four.

MULTIMILLION PROJECT PROPOSED

The township proposed a $22.7 million project that includes a wastewater treatment facility with the capacity to process 360,000 gallons per day, more than 100,000 feet of pipeline and six lift stations. The facility, to be located off Route 224, would serve residents of Edinburg, Hillsville and the Valley View complex.

Pezzuolo said the township had anticipated completing the plant and sewer lines so it would be ready when the track opened in July 2009.

After financial problems began, the Pennsylvania Harness Racing Commission in August granted Centaur a one-year extension, giving it until July 2010 to begin racing at Valley View Downs.

If new funding can’t be obtained, and if the track and casino are put on hold, Pezzuolo said, the supervisors will proceed, but scale back the facility.