ARENA PLANS Penguins show no interest in proposal

A California group has offered to build a new arena for $160 million.
PITTSBURGH (AP) -- The Pittsburgh Penguins are turning a cold shoulder to a proposal by a California group to build the team a new arena for $160 million, saying two previous studies indicate that the project will cost more than $200 million.
Team president Ken Sawyer said the Penguins also don't like the proposal by the Los Angeles-based Sports Finance & amp; Management Group because it doesn't appear to give the team the same control over the arena and its revenues that the Pittsburgh Pirates and Pittsburgh Steelers have with their new venues, which opened three years ago.
PNC Park and Heinz Field are owned by the city-county Sports & amp; Exhibition Authority, but the Pirates and Steelers operate the venues and control the scheduling of events and revenue streams.
Team wants control
Penguins investors are likely to balk at any plan that doesn't give the team control over revenues needed to pay the $20 million in annual debt service that would likely be needed to fund such a project, Sawyer said.
The Penguins hope slot machines will be legalized in Pennsylvania and that some government revenues from a slots parlor in or near the city will be designated to pay for the arena. Team owner Mario Lemieux flew to Harrisburg last Wednesday to meet with Gov. Ed Rendell, who has said that such an arrangement could be used to build the arena.
Former Gov. Mark Schweiker, acting as a liaison for SFMG on the arena proposal, has said that such a deal would address concerns raised by state and Allegheny County officials, who say they have no tax money to spend on a new arena.
But SFMG hasn't specified who would control an arena built with mostly private money or how the money would be raised.
Costs would be higher
Sawyer said that doesn't matter because a 2002 study by the city-county Sports & amp; Exhibition Authority showed that an arena would cost about $209 million, not counting site preparation and basic development such as roads. A study paid for by the Penguins last year put that cost at $213 million, and estimates for the total cost are $270 million to $278 million.
"We brought in experts to analyze every aspect of this for months and the SEA did exactly the same thing," Sawyer said Saturday night. "We came up with almost the exact same number. A figure such as $160 million is just not possible, not for what is needed for a modern arena. It just is not realistic."