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September 23, 2008

Centaur reaffirms interest in local project

By Nancy Lowry

Centaur Inc. this week reaffirmed its interest in Valley View Downs and Lawrence County.

However, a search for new financial partners could delay the awarding of a slots license to the Indiana-based gaming business.

Richard McGarvey, a Pennsylvania Gaming Control Board spokesman, yesterday said continued investigation of Centaur�s license application will be on hold until the new financial plan is presented for review.

�Centaur is still the gaming license applicant,� he said. �They have not pulled out. They are still interested in continuing the process.�

On Sept. 5, 2007, Centaur received the state�s final harness track license through the Pennsylvania State Harness Racing Commission. The following month, Centaur applied for a gaming license to operate 3,000 slot machines.

The gaming board investigators recently said they are �just about� completed with the investigation of Centaur�s principals.

In light of the tight financial markets, Centaur may be looking to take on new partners as it seeks funds to move forward on the $455 million racetrack and casino planned for Mahoning Township.

�If they take on new partners, who have more than 1 percent interest of the project, the gaming board, by law, will have to investigate the new partners.�

McGarvey said he would not speculate how long that might take.

�It would depend on what the financial package looks like,� he explained. �If there are major changes to the organization (of Centaur) it will take longer than a minor change or if their new partner is someone who has already been investigated by the board. It is hard to say what will happen until they come to the board.

�They had been coming down the stretch,� he said. �Until the financing difficulties, we were getting ready to schedule a suitability hearing. That is the next-to-the-last step before getting the license.�

A suitability hearing, he said, can not be scheduled now until Centaur�s partners and funding are known.

A search for new financing could delay the licensing process unless the new partner has already been investigated.

By example, McGarvey pointed out that Neil Bluhm, who partnered with financially strapped Don Barden on the Pittsburgh casino project, already had been investigated by the commission and the transaction was smooth.

He noted Centaur still holds the harness track license.

�That, and the fact that the harness commission gave Centaur a year-long extension to begin construction, holds the (gaming) license,� he said. �No one else can take the slots license.�

State Rep. Chris Sainato said he also is hopeful Centaur will find new financing or partners soon.

�The stock market has been terrible, but in the past few days we�ve seen improvements,� Sainato noted.

He added that despite a dim economic picture throughout the United States and the world, �We�re making money in Pennsylvania. All of our casinos are doing well.

�Anyone looking to invest in something like this, will look at where money is being made. There is potential here but if there is no money out there to invest ...�

Sainato also pointed out Centaur is still interested in the project.

�They have said they will do all they can to bring the project to Lawrence County . This area also has full community support. That is definitely something that is in our favor.�

Sainato said he spoke with Centaur officials earlier this week regarding their announcement to seek financing.

�They told me they are still interested. That is what I want to hear,� he said.

�What I don�t want to hear is they are pulling out. That would be the worst-case scenario. From all I�ve heard, they want to stay here. They are happy with the location.�

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