GAMBLING MTR backs out of plan to build racetrack in Erie

ERIE, Pa. (AP) -- MTR Gaming Group has withdrawn a proposal to build an $80 million horse racetrack and slot machine parlor on the site of the former International Paper Co. plant.
MTR Gaming Group's chief executive, Ted Arneault, said Mayor Rick Filippi's vow to vote down any public funding for the development has effectively killed the deal. That means MTR will continue with plans to develop Presque Isle Downs in neighboring Summit or McKean townships.
The city council, which had been split over the amount of public funding for the development, voted Wednesday against $35 million in public subsidies for the project as well as a refund of $10 million, plus interest, to reimburse MTR for upfront costs of construction. In return, the city stood to gain about $10 million a year in slot machine revenues.
Charges
Filippi had worked to bring the gambling development to the city until he and two longtime associates were charged by the state Attorney General's Office earlier this month with using inside information to buy up four real estate parcels near the former paper plant.
Filippi has denied any wrongdoing and his attorney said Filippi was instead trying to prevent a "shakedown" of taxpayer dollars by MTR and its real estate agent.
Arneault said in a letter to the council Wednesday that his West Virginia-based company can't justify risking litigation or paying for infrastructure at the paper plant site, given Filippi's opposition.