By Nancy Lowry
New Castle News
October 22, 2008 10:56 am
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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.
Without the track, he said, the township will require a plant capable of treating 160,000 gallons per day to accommodate the township’s 600 residents of Hillsville and Edinburg.
FUNDING JEOPARDIZED
Following the meeting, Pezzuolo explained that without the track and casino, the township’s funding also is in jeopardy.
In July, the Pennsylvania Infrastructure Investment Authority agreed to provide almost $10 million through a 1 percent loan to be repaid over 10 years. However, Pezzuolo said, about $7 million of that was received because 2,500 jobs — construction and full-time and part-time jobs after the facility opens — were to be created.
“They will not release the money if the jobs are not created,” he said.
This prompted a resident to ask if extravagant tap-in fees are to be expected if Valley View does not materialize.
Pezzuolo said that would not happen.
He and Supervisor Francis “Poncho” Exposito remain confident the track and casino will go to the township.
“They have a lot invested in the project,” Pezzuolo noted, including property, plans, engineering and permits.
“If they can get the financing, I’m confident Centaur will build. If not, they will sell. But I’m sure we’ll see the project built here.”
Exposito proposed the supervisors and Lawrence County commissioners meet with representatives of Centaur and the governor’s office “to get answers.”
TIME FOR FUNDING
Pezzuolo said he did not believe such a meeting would be productive noting, “Centaur got a year to raise money.”
Like Pezzuolo, Exposito said he believes “even if the property is sold, it will go to someone interested in constructing a track here.”
He also noted Centaur already contributed $300,000 toward the sewer project.
“They gave us the $300,000 in good faith as a portion of their tap-in fee,” Pezzuolo said.
Asked by a resident if the township is under order by state officials to install sewer lines within a specified time, the supervisors said state officials know their situation with Centaur and are working with them.
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