By Nancy Lowry
New Castle News
October 16, 2008 09:41 am
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Centaur Inc. has reunited with Credit Suisse.
The Indiana-based gaming corporation, which proposed a $455 million racetrack/casino complex in Mahoning Township, hired the investment bank “to help us develop strategic alternatives to advance the project.” Centaur spokesman Susan Kilkenny said.
In an e-mail, Kilkenny noted Credit Suisse is familiar with the project already.
Last October, Credit Suisse was the lead lender in an almost-$1-billion loan negotiated by Centaur to build the local gaming complex and renovate existing properties in Indiana and Colorado.
Centaur defaulted on that loan in July as the credit market collapsed and after the Pennsylvania Gaming Control Board refused to issue a conditional gaming license to operate a 3,000-slot casino.
Kilkenny said Centaur remains committed to “vigorously pursuing the successful development of Valley View Downs and Casino through all means available.” These alternatives could include taking on partners or selling Centaur’s interest in the project.
Centaur was not included on the agenda of the gaming board, which met Tuesday.
“We don’t expect to include them until they have new information on their financing, until they ask to be placed on the agenda,” gaming control spokesman Doug Harbach said.
Despite that, Lawrence County Commissioner Dan Vogler still made the trip to Harrisburg for the 90-minute meeting.
“I didn’t expect there to be any discussion (on Centaur),” he said. “But I believe the county should be represented and that the board knows that there is local support for the project.”
State Rep. Chris Sainato said he has not yet heard anything to make him believe the racetrack and casino will not be built in Lawrence County — someday.
“Nothing is going to happen anytime soon,” Sainato said. “We had thought something might happen this fall. Now it looks as if it will be a long process. We’ll be lucky to see anything by spring.”
Earlier this year, the Pennsylvania State Harness Commission showed support for the project by extending for one year the time Centaur has to built the racetrack, Sainato noted.
“What Centaur has to do now is come up with the financing. There is no doubt that there is money to be made in Lawrence County through this facility and there is still interest. What we need are investors.
“Centaur’s number one priority is to secure financing,” he said. “And it’s tough now to get money for houses, let alone $450 million for a casino.”
Sainato said he has never seen the economy as bleak as it is now, but added when he spoke with Centaur people a week ago, he was assured the corporation is still interested and still committed to the project.
“I’m still cautiously optimistic, still comfortable with what they told me,” he said. “Nobody has said Centaur is considering pulling out. This could take a month or six months, but something is going to happen. Once the credit market unfreezes, we could see money become available.
“The problems are not just here, they’re worldwide,” Sainato said. “You can’t pull $8 trillion from the economy and not see effects. People are scared right now. They don’t want to spend money. But once good things begin to happen as a result of what the federal government and G-7 are doing, we could see some recovery in the credit market and there will be money out there to invest. Lawrence County is a good investment.”
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