Pittsburgh slots firm balks on revitalization

PITTSBURGH - The developer of the Majestic Star slots parlor wants to pull out of a commitment to give $3 million to help revitalize the city's Hill District, according to papers filed with the Pennsylvania Gaming Control Board.

Don Barden's company, PITG Gaming L.L.C., originally offered the money in 2006 in his bid to win the Pittsburgh slots license.

But in a petition filed last week, the company told the gaming board that it had changed course since officials in Pittsburgh and Allegheny County gave the Pittsburgh Penguins the authority to develop land in the Hill District once the team's new arena is built.

The Penguins and Barden met once last year to discuss Barden's possible participation in developing the area, but the two parties never reached an agreement.

Hill District representatives said that Barden's decision disappointed them, but that they understood why he was reluctant to commit money to the area.

Marimba Milliones, chair of the Hill Community Development Corp., and Carl Redwood, chair of the One Hill Community Benefits Agreement Coalition, said they hoped Barden would invest in the community at some point.

Also as part of the petition, Barden's company wants to change the financing for the casino. Barden said he hoped to have $650 million in loans from Credit Suisse and $150 million from KeyBank National Association in place by May 19.

The petition also calls for 3,842 spaces in the casino's parking garage, down from 4,100.

Richard McGarvey, a gaming board spokesman, said the board must approve the changes in the petition before they could take effect.

State gaming regulators awarded Barden the slots license in December 2006, but appeals by losing bidders delayed groundbreaking for the Majestic Star until December 2007.

Barden hopes to open the slots parlor with 3,000 slot machines in May 2009.