City makes pitch to retain Penguins
Future gambling revenue could repay money for land for a new arena.
PITTSBURGH (AP) -- Pittsburgh and Allegheny County officials have secured financing that they said will help keep the Penguins in Pittsburgh.
The state will lend $26.5 million to the Sports Exhibition Authority to pay for preparation and acquisition of land for a new arena for the Pittsburgh Penguins, Allegheny County Executive Dan Onorato said Thursday.
The money will be repaid by future gambling revenue, officials said.
"We are asking the current ownership and the future ownership to keep the Penguins in Pittsburgh," Onorato said. "We are now in a position to have a new multipurpose facility and lease that will be as competitive as any other agreement in the league."
Franchise's status
The Penguins are for sale and have threatened to leave the city if an arena isn't built to replace 45-year-old Mellon Arena, the oldest and smallest in the National Hockey League.
Officials said they received written guarantees from two applicants for the city's sole slot-machine gambling license that they will help pay for a new arena if they win the license.
Forest City Enterprises and PITG Gambling each promised in writing to provide $7.5 million a year for 30 years to help the Penguins defray construction costs.
Another applicant, Isle of Capri Casinos Inc., has already pledged $290 million toward a new arena if it gets the slots license.
The Isle of Capri plan is endorsed by Penguins owners.