By Nancy Lowry
New Castle News
May 15, 2008 12:54 pm
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The withdrawal of a potential Valley View Downs partner is not expected to hurt the project planned for Mahoning Township.
�Our project is and has always been fully financed,� said Susan Kilkenny, director of communications and public relations for Centaur Inc.
Last month, Stephen Hilbert, former Conseco Inc. chief executive, and his companies � MH Investors and MH Equity � filed a petition with the Pennsylvania Gaming Control Board to withdraw as partners in the $429 million racetrack and casino planned by Indiana-based Centaur in Lawrence County.
The Pennsylvania Race Horse Development and Gaming Act requires investors with contractual rights to acquire an equity interest in Centaur.
As partners, Hilbert and his companies would be investigated to determine their suitability prior to the issuance of a license.
However, Hilbert and his friend, John Menard, co-founder MH Equity, were hesitant to submit to the scrutiny of a gaming board investigation into their past or their business dealings, according to a gaming industry newsletter.
The petition before the gaming board states Hilbert and his companies �do not now and will not in the future hold any equity interest in Centaur or Valley View.�
Although he will not have a say in how the casino or racetrack operate, and will not become a part-owner, Hilbert is still expected to invest about $200 million with Centaur.
The gaming board may act Thursday on Hilbert�s request to withdrawal.
Kilkenny said Centaur Gaming has enjoyed a 15-year relationship with Hilbert. Through MH Equity, she said, he has been instrumental in investing $200 million toward a $1 billion financing package with Centaur.
�We are in the midst of an expansion at Hoosier Park in Anderson, Ind.,� she noted. �This project is in the home stretch (and) ... expected to open June 1.�
Richard McGarvey, a gaming board spokesman, said it is impossible to speculate if Hilbert�s withdrawal as a potential partner of the racetrack and casino will speed the board�s decision-making process in awarding the slots license to Centaur.
�The board is charged with investigating licensees,� he said. �It will take as long as it takes. There are no shortcuts.�
In September, Centaur, Valley View�s parent company, was awarded the state�s final license to operate a harness racetrack. Centaur is now seeking a license to operate a casino featuring 3,000 slot machines.
At 9 a.m. Thursday, the board will meet in the Mahoning Township Community Center on Route 224 to hear public testimony on the casino project.
In addition to the public hearing on the Valley View casino license application, the board will conduct its monthly meeting in the afternoon.
�The Hilbert item is not on the agenda but it could be added,� McGarvey said. �It is currently pending before the board and the board could act on anything that is before it.�
Wednesday, the gaming board will conduct a hearing at in Clark to consider financing changes proposed by Don Barden for his $600 million Majestic Star Casino planned for Pittsburgh�s North Shore. That item is on the board�s agenda for possible action, McGarvey said.
About 30 people have registered to address the gaming board Thursday. Rick Kelly, a Centaur spokesman, said all appear to be prepared to speak in favor of the project.
The Valley View building project is expected to take 14 months after the casino license is awarded.
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