A gaming license: Who will win race?

Tax revenues from both proposed tracks are estimated in the millions.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- The competition for Pennsylvania's last harness racing license is fast becoming a contest between two depressed areas touting the opportunity as its economic savior.
Bedford Downs, four miles west of New Castle on U.S. Route 422 in Mahoning Township, Lawrence County, and Valley View Downs, near Chippewa Township, on Pa. Route 51 in Beaver County, are the chief competitors for the license.
Two others have applied, but are not eligible for the lucrative gaming license, allowing up to 5,000 slot machines to be placed in the racetrack complex, because of their location near already-built racetracks that are expected to get casinos.
Both western Pennsylvania competitors touted their proximity to the state line and easy access for Ohio gamblers during their presentations before the Pennsylvania Harness Racing Commission last week.
Much like the Bedford Downs meeting, a host of elected and appointed officials spoke about the economic benefit the proposed Valley View Downs would have on Beaver County's economy.
But missing from Valley View Downs' presentation was the well-coordinated multimedia presentation given by its Lawrence County competitor and the strong local support.
At Bedford's public meeting, an estimated 600 people waited in the rain to be transported to a large circus-sized tent. The crowd at the Beaver County meeting, at the Holiday Inn in Beaver Falls, was closer to 200 people, mostly consisting of elected and appointed leaders and labor union leaders.
Focusing on impact to economy
After the presentations, public comments in both meetings drove home the economic impact each project would have on its county.
"This project, we believe, is so vital to Beaver County. This is a hope and a chance to revitalize Beaver County. We desperately need these jobs and we desperately need this project," said Dan Donatello, chairman of the Beaver County commissioners.
Another official called it the largest project since the construction of the Shippingport nuclear power plant.
In his plea for a Bedford Downs harness license, no one was more eloquent than Terry Abrams of Struthers, who is deputy executive director of the Home Builders/Remodelers Association of Mahoning Valley.
"I came here in 1974," Abrams said. "Mercer County was hit. Beaver County was hit, but Lawrence County was hit much more in the 1970s, losing Johnson Bronze, Mesta and two Rockwell plants. It deserves this opportunity. These are good people. Very simplistic, very elemental. They'll tell you what they think. They deserve this opportunity."
Linda Nitch, executive director of the Lawrence County Economic Development Corp., cited Lawrence County's 7-percent unemployment rate and how Bedford Downs, along with proposed high technology Millennium Park, would be a powerful driver of the regional economy.
No favoritism
After the two hearings, Roy W. Wilt, harness commission chairman and a retired Mercer County lawmaker, didn't reveal any favoritism.
"They are both quality projects. Very well thought out. I'm sure either one will be a class operation," he said.
Wilt did indicate during Valley View Downs' public comment meeting that the financial impact will play a major role in the decision.
"It's pretty much an economic decision," he said, explaining the state will be looking for the best tax benefit.
Tax revenue estimates given at both public meetings were similar, with Bedford estimating about $132 million in state taxes from gambling and Valley View at $130 million.
Local tax revenue would be about $13 million in Beaver County and about $10 million in Lawrence, according to information released last week.
Differences
While the tax revenues are similar, developers contend the projects and companies are very different.
Carmen Shick, president of Bedford Downs, emphasized his local roots. Shick's family business, C.D. Ambrosia Co., has been in business since the 1930s and his family has been Lawrence County for four generations. He and his sister Kendra Tabak and brother Kenneth Shick III are the principals in the company.
Valley View Downs would be owned by Centaur Inc., an Indiana-based company with investors from Indiana and Illinois who are mainly involved in agri-business, according to Jeffrey Smith, chief executive officer of racing for Centaur. Centaur owns 38-percent interest in Hoosier Park in Indiana and owns Fortune Valley Hotel & amp; Casino in Central City, Colo.
Smith contends Valley View's five-eighths-mile track on 220 acres in Beaver County is best because it allows the fans to be closer to the action.
Shick touts his 1-mile track on 550 acres in Lawrence County as giving all horses in a race more of a chance to win than on a smaller track. It said the larger track would attract better horses and jockeys, large purses and the chance to attract national harness races such as the Hambletonian.
Both would offer a host of amenities including restaurants, hotels and retail shops. Bedford Downs also has plans for an indoor water park and condominiums in its final phase. Shick has also offered to give 1 percent of his annual net profits to the Pennsylvania War Veterans Council.
When panel will decide
The final decision will be made by the harness racing commission early next year. The makeup of that board is still unclear. Attending hearings in Lawrence and Beaver counties were Wilt and member C. Edward Rogers Jr. The third spot on the board is vacant.
Gov. Ed Rendell has made two nominations for the board to the state Senate, one a replacement for Wilt and the other for the vacancy.
Officials in Lawrence County urged the commission to leave politics out of the decision and look for the best project.