MAHONING TOWNSHIP —
Valley View Downs is galloping toward the auction block.
A verbal agreement was reached Wednesday between Centaur and creditors that could lead to the sale of the Indiana-based company’s Pennsylvania assets in Mahoning Township. Bids could be opened by Oct. 20.
Centaur, involved with developing horse racing and gaming venues, filed for Chapter 11 protection under the U.S. Bankruptcy Code on March 8, claiming debt in excess of $600 million.
Yesterday the Pennsylvania Harness Racing Commission scheduled a special meeting for 10 a.m. Sept. 3 to consider Centaur’s request for a two-year extension of its racing license. That license was awarded Sept. 5, 2007, and is due to expire on Sept. 5. This is the second two-year extension requested by Centaur.
Retaining the $50 million racing license is essential to a sale.
Centaur had anticipating constructing a multimillion-dollar racetrack and casino, generating 1,000 construction jobs and another 1,000 full- and part-time jobs when the project opens. However, Centaur has not been able to obtain financing for the project or to secure a casino license.
Yesterday, Susan Kilkenny of Centaur said a tentative agreement has been reached between the company and its creditors and she expects more specific information early next week.
Local officials were pleased with the commission’s decision.
“This is exactly what we’ve wanted,” state Rep. Chris Sainato said of the actions of the commission and bankruptcy court. “This is the quickest way to get this project to become reality.”
When Centaur requested the second racing license extension, Sainato said he did not favor another two-year extension, but suggested Centaur “... build or sell to someone else who will.”
Yesterday he said, “It makes no sense not to extend the license. Even if they extend it for only one month, and let the new owners ... go in and make their own request.”
INTEREST
Sainato said there is interest in the project and is confident someone will come forward
“We had anticipated that the (track) would be built by Centaur. But if a new company comes in and it is a good deal, let it go.”
He said he was told that the court will accept sealed bids for Valley View Downs assets which must be received by Oct. 6.
“I was told they would be opened Oct. 20, and awarded to the highest, most credible bidder,” he said, adding, “The bankruptcy court must approve whatever happens.
“To reopen the whole process will take another two years,” he said. “We don’t need this. The state doesn’t need this and neither does the harness commission. We need the track to be under construction, operating and generating money for the state and for the property tax relief fund.”
Sainato reiterated the Mahoning Township location “is the best site.”
He also noted Centaur has sold its Fortune Valley Hotel and Casino in Central City, Colo.
That sale — for $10 million to Luna Gaming of Central City — was approved Wednesday by a bankruptcy court judge.
POSITIVE
Lawrence County Commissioner Dan Vogler, who attended yesterday’s harness commission meeting and plans to attend next week’s session, said he is positive.
“From what I heard, it is Centaur’s desire to bring this project in Lawrence County to reality. It looks like this will happen, but not with Centaur.”
Vogler said Joe DeRosa of Centaur Gaming, told the harness commission yesterday that Centaur has requested the bankruptcy court allow it to “transfer the equity” of Valley View Downs.
The key, said Vogler, is if the harness commission agrees to the extension requested by Centaur. “The Lawrence County commissioners hope they will, to allow the bidding process to go forward.”
If the commission rejects the request and the license is not extended, Vogler said, the process will revert to square one.
“They would have to open it up to see if there is any interest,” he said. “That will delay things by years.”
If the request to extend the license is approved, it could open the way for the project to proceed, “hopefully to remain in Lawrence County.”
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