State lawmakers are pushing Majestic Star Casino owner Don Barden to keep his $3 million promise to help develop the Hill District, a topic Mayor Luke Ravenstahl said Monday he'll discuss with Barden in a meeting this week.
During the heat of the slots bidding process in 2006, Barden offered to direct $1 million a year for three years to the Hill District, but last week he petitioned the state Gaming Control Board to allow him to back out of the commitment and make other changes to his plans for a North Shore slots parlor.
Ravenstahl said he'll meet with Barden at the City-County Building.
"I certainly want to make sure that the commitments he made are lived up to," Ravenstahl said. "I don't want to see significant changes made to the original agreement."
Separately, Democratic state Sens. Jay Costa of Forest Hills, Wayne Fontana of Brookline and Jim Ferlo of Highland Park are drafting a letter asking gambling board members to deny Barden's request. The gambling regulators must approve the proposed changes for them to take effect.
"Where I come from, you make a commitment, you stick to your commitment," Costa said. "That's what's disappointing here."
Majestic Star officials could not be reached for comment yesterday.
Barden's PITG Gaming received the license for Pittsburgh's slots parlor in December 2006, and plans to open a casino in May 2009.
Ravenstahl guessed Barden might want to keep the $3 million to combat rising construction costs that have boosted the casino's price tag, initially estimated at $450 million. Barden's company is seeking $650 million in financing for the casino.
The mayor said he would take that "into consideration" when he tries to persuade Barden to keep his promise to the Hill.
"Just because there's some incurrence of additional costs, it doesn't mean it should be at the expense of a promise made to the residents of the Hill District," Fontana said. "We all know that casino is going to make a lot of money. ... We expect him to live up to his promise."
Majestic Star officials were in New York City, seeking investors for the project. Credit Suisse, an international financial services company, agreed to put up two loans worth $650 million for the project, according to the petition PITG Gaming filed with the gambling board. The deal includes a $150 million loan backed by the municipal pension funds for police officers, firefighters and municipal workers in Detroit, where Barden lives.
Majestic Star broke ground for the casino in December, a month after closing on a $200 million bridge loan that matures May 19. Barden expects permanent financing to be in place by then, according to the state filing.
Ferlo said he plans to sign the letter with Costa and Fontana but expects to send a separate letter to Barden, asking him to explain how he will pay for the casino.
"My greater concern rests with the continuing saga of his apparent inability to obtain capital financing," Ferlo said.
Barden's company also committed to paying $7.5 million a year for 30 years toward an Uptown arena.
"I have no concerns about the $7.5 million for the Penguins arena," Ravenstahl said. "I believe that it is a firm commitment."
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