NHL Pittsburgh warned on new arena

The Penguins' time in Western Pennsylvania is ticking down.
TURIN, Italy (AP) -- The Pittsburgh Penguins' arena issue must be resolved within months or the team will look at other options, NHL deputy commissioner Bill Daly warned Friday at the Turin Olympics.
With the team up for sale and unlikely to attract an owner willing to keep it in 45-year-old Mellon Arena, the most likely option would be moving the team to another city.
A casino company will build a $290 million arena at no taxpayer cost if it awarded a state license to build a downtown slot machines parlor.
However, the license may not be granted until late this year -- and, even then, any decision might be subject to formal appeal, according to team officials.
Swift action advised
With the Penguins now only 15 months away from the end to their Mellon Arena lease, Daly said there must be swift action in resolving the arena issue.
"The time window for the Penguins to get financing on a new arena is short. I believe the city of Pittsburgh deserves to have the Penguins, but the Penguins also need a new building and they've needed a new one for years," Daly said.
The 16,940-seat Mellon Arena is the NHL's smallest and oldest, and Mario Lemieux's ownership group has sought a new building since acquiring the team in federal bankruptcy court in 1999.
Lemieux, a Hall of Fame player who retired last month, put the team up for sale several months ago -- partly because he wants no involvement in any franchise move. But any new owner must honor the agreement with Isle of Capri Casinos to build the new arena.
"They have the oldest arena in the league, and it doesn't provide the revenues that team needs to stay competitive," Daly said. "It needs to resolve itself in the next couple of months, otherwise they're going to have to look at options."
Possible sites
Kansas City, Mo.; Portland, Ore.; and Houston are among the cities looking to acquire the Penguins if they leave Pittsburgh, their only home since beginning play as an expansion franchise in 1967. Kansas City wants the Penguins to play one of their preseason games there next season.
"They need to start moving forward in Pittsburgh," Daly said.
Three applicants are competing for the slots license. Isle of Capri Casinos Inc., the Penguins' partner, plans a $1 billion project that would include the slots parlor, the arena and retail development similar to that near Nationwide Arena in Columbus.
Harrah's Entertainment Inc. and Forest City Enterprises, of Cleveland, want to build a $1 billion development anchored by a casino next to Station Square, an entertainment and shopping complex on the city's South Side. That plan includes no arena money.
The other Pittsburgh casino contender is Detroit casino owner Don Barden, who proposed a $350 million casino, entertainment and shopping development on the city's North Shore.
State auditor general Jack Wagner, a former state senator from Pittsburgh, said earlier this month that Pittsburgh-area residents and politicians must come together and demand that some slots revenue be devoted to a new arena.