By Nancy Lowry
New Castle News
August 08, 2008 10:29 am
—
Centaur is not yet ready to throw in the towel, according to local officials.
News that Valley View Downs, the $430 million racetrack/casino complex planned for Mahoning Township may have fallen victim to the collapsing credit market may be premature.
Debtwire, a financial news service, this week said Centaur is being pushed to abandon its plans for Valley View Downs and to repay its lenders. Tightening credit markets are pushing Centaur into a corner and is discussing canceling its casino development in Lawrence County.
The Indiana-based gaming operator which owns a racetrack and casino in Indiana and a casino in Colorado last year negotiated an almost $1 billion financing deal that would upgrade existing properties and to build Valley View Downs.
Lawrence County Commissioner Dan Vogler said that �as recently as last night� he was assured by Centaur officials that the project is still alive.
�They told me negotiations with their creditors are on-going,� Vogler said. �They said discussions are at a �sensitive and complex� level but are continuing.�
Vogler said the commissioners are �certainly concerned� with speculation that the project may not continue.
�We have told them we will help them in any way we are able.,�
Vogler said the county is anticipating using slots revenue for necessary development projects. �But we haven�t yet even devised how any revenue will be allocated,� he said.
If the track and casino come, he said, the commissioners have pledged to assist Mahoning Township supervisors to expand a sewer line project along Route 422 to Valley View.
�But if Valley View does not come, there is no need to expand the line that far at this time,� he said.
CENTAUR FINANCING
Centaur�s financing seemed to hit a snag when the state Gaming Commission failed to act last month to award a conditional slots license. The credit market has since collapsed further �necessitating revisions of (Centaur�s) original credit agreement,� corporate officials said in the past.
�They were told the process would take about a year,� state Rep Chris Sainato said. �Every other (gaming board) investigation took a year. Why would they think they could get through it sooner?�
He noted that Centaur did not apply for the gaming license until October 2007.
This morning, Sainato said he contacted Centaur officials early today.
�I was told their negotiations are continuing,� he said, adding, �Speculation does not help. We must let them work things out and hope a satisfactory resolution is reached.�
Sainato said he is confident that things will work out.
�From the start we�ve said this is a great project, a great location. If a lender looks at this, they will see it is a great investment.�
Centaur officials did not return phone calls this morning.
GAMING COMMISSION�S POSITION
Richard McGarvey of the state Gaming Commission today said he has read the stories of Centaur�s dire financial future.
�But we have received no notice that Centaur has withdrawn its application,� he said. �Right now, as far as we are concerned, everything is proceeding.�
McGarvey recalled that at the commission�s July 10 meeting, Centaur reiterated statements made at the May meeting held in Mahoning Township, that its funding could be in jeopardy if a conditional license was not awarded by July 15.
McGarvey said the commission, at the request of Pittsburgh developer Don Barden, scheduled special meetings to consider changes he proposed with his project.
�But the board did not ask him to come in to talk about his finances.�
McGarvey said the investigation in continuing.
�We�ve said all along that by this fall we would complete the investigation, hold a suitability hearing and based on our findings may award a license. That is still our schedule.�
Mahoning township Supervisor Francis �Poncho� Exposito said he has not spoken with Centaur officials recently but �as far as I know, they are still working on their financing. I hope they get the money they need.�
Mahoning Township�s development plans �will be greatly affected� if the developer pulls out, he said.
�Our sewer project will continue,� he said. �We are still mandated by the Department of Environmental Protection Authority to put in public sewers for Hillsville. But beyond that the project may be scaled back, depending on the bids.�
Local developer Carmen Shick said Centaur, his former rival for the racetrack/casino project, �should never have been put into this position.�
�I believe a conditional license should have been awarded,� he said. �There was merit to do it.�
Shick noted that financial markets �do not revolve around Pennsylvania or even the United States.�
He said, �This is a totally unnecessary hardship for the project after all we�ve been through.�
Shick said he believes the gaming commission �was afraid to act in a decisive� manner with regard to the early award of the license.
�So many people are depending on the project. It is so important to the community,� he said �We�re talking 2,500 jobs right here, right now for Lawrence County.�
Copyright © 1999-2008 cnhi, inc.
Photos
