Wednesday Deadline Approaching Fast In Pittsburgh Casino Project

The casino project that offered so much hope in Pittsburgh has now become a major headache. The original developer who won the rights to the license has not secured the funding necessary to complete the project.

That would be bad enough if not for the fact that the developer, Don Barden, has found somebody who will take over the project and become the majority owner. Chicago billionaire Neil Bluhm has not been approved by the state yet.

So as the controversy rolls on a Wednesday deadline looms. If Bluhm is not approved by Wednesday he claims that the project could go into bankruptcy, and if that happens, he will pull out of the deal.

The economy has played a huge role in the problems that the casino project now faces. If Bluhm pulls out of the deal, that could leave a big gap in when the project will ever get finished.

The funding is just not readily available for any developer to come in and get the loans necessary to complete the project. Bluhm knows this and is using his leverage to get approved for the casino.

"Essentially, what has happened is the credit market has frozen up. To the extent that Bluhm could use his financial might to move the project forward, that might be the best option available. The level of uncertainty for the time, scale, and scope, of the project would increase dramatically if they seek new bids," said Nicholas Danna, Senior Gaming Analyst for Sterne Agee & Leech Inc.

Two state senators have suggested that Bluhm's bid be turned down and the entire project be re-opened for new bids. That, however, would be a tremendous chance that the state would be taking.

July 28, 2008
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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