Gambling lessons
Although youth appears to be in charge at both Allegheny County and
Pittsburgh city government levels, the "Old Boys' Network" is alive and
well -- along with some poor math skills. Let's revisit some key points
related to the awarding of Pittsburgh's slots license: Why did the state
award a slots license for $50 million that many gaming experts agreed would
fetch between $300 million and $500 million? I have to suspect that $250
million to $450 million would have built a nice arena and left several
million for developing the lower Hill District. Because of the political
allies that Forest City engaged for its Station Square bid and its ties to
our political leaders, neither County Executive Dan Onorato nor Mayor Luke
Ravenstahl (who personally favored the Isle of Capri casino proposal) had
the wherewithal to support the Capri bid for fear of upsetting their
political friends. They also lacked the foresight to strategically negotiate
Plan B. While Don Barden's bid and Majestic Star's North Shore location may
ultimately appear to be the best plan for the region, does anyone at the
county and city understand the time value of money? The sum of $290 million
today is worth a whole lot more than $7.5 million a year over 30 years. If
Isle of Capri could afford to offer $290 million to build an arena, did
anyone think that asking the other two casino companies for $7.5 million a
year over 30 years might be too low? Now that the license has been awarded,
Barden is under no pressure to increase his contribution. Maybe we should
have asked before the license was awarded? Now Dan and Luke are upset that
the Pens will not return their phone calls. THEY are willing to negotiate.
Negotiate with whose money? If the original intent was to use slots money to
reduce property taxes, I am glad to hear that my relief is now being reduced
because our visionary leaders cannot add.
Pittsburgh city government levels, the "Old Boys' Network" is alive and
well -- along with some poor math skills. Let's revisit some key points
related to the awarding of Pittsburgh's slots license: Why did the state
award a slots license for $50 million that many gaming experts agreed would
fetch between $300 million and $500 million? I have to suspect that $250
million to $450 million would have built a nice arena and left several
million for developing the lower Hill District. Because of the political
allies that Forest City engaged for its Station Square bid and its ties to
our political leaders, neither County Executive Dan Onorato nor Mayor Luke
Ravenstahl (who personally favored the Isle of Capri casino proposal) had
the wherewithal to support the Capri bid for fear of upsetting their
political friends. They also lacked the foresight to strategically negotiate
Plan B. While Don Barden's bid and Majestic Star's North Shore location may
ultimately appear to be the best plan for the region, does anyone at the
county and city understand the time value of money? The sum of $290 million
today is worth a whole lot more than $7.5 million a year over 30 years. If
Isle of Capri could afford to offer $290 million to build an arena, did
anyone think that asking the other two casino companies for $7.5 million a
year over 30 years might be too low? Now that the license has been awarded,
Barden is under no pressure to increase his contribution. Maybe we should
have asked before the license was awarded? Now Dan and Luke are upset that
the Pens will not return their phone calls. THEY are willing to negotiate.
Negotiate with whose money? If the original intent was to use slots money to
reduce property taxes, I am glad to hear that my relief is now being reduced
because our visionary leaders cannot add.
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