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Township to file objection to racetrack-property sale
HILLSVILLE, Pa.
Mahoning Township and possibly some other parties plan to file objections to Centaur LLC of Indianapolis’ bankruptcy reorganization plan and the sale of its proposed racetrack property here to a Pittsburgh company.
Mahoning Township’s solicitor, Louis Perrotta, said Wednesday that township supervisors have scheduled a special meeting for 9 a.m. today to authorize him to file an objection to the plan and sale in Delaware bankruptcy court by Friday’s deadline.
Perrotta added, “It is my understanding that other objections will be filed,” although he said he was not at liberty to disclose who will file them.
Perrotta said the township will file the objection to protect its interests. He said that Centaur doesn’t owe the township money outright but that the township wants to protect its lien rights on the acreage off U.S. Route 422, where the proposed Valley View Downs racetrack and casino were to be located.
The township had greatly expanded the scope of a sanitary-sewer project in Edinburg to take in Valley View Downs when Centaur announced several years ago that it planned to put the combination racetrack and casino on the property.
Perrotta said the township spent money for design of a sanitary-sewer system to the proposed racetrack site and used resources to obtain easements in the area.
He said that ordinarily if a sewer is built and a property owner does not tie in, the township could put a lien against the property.
Such liens, however, cannot be placed against properties in bankruptcy, he said.
Valley View Downs and Centaur, its parent company, are in bankruptcy reorganization and had placed the racetrack property up for auction.
The apparent successful bidder is American Harness Tracks Inc. of Pittsburgh, but the sale won’t be finalized by the bankruptcy court until at least Dec. 13.
Local officials have expressed concerns that if American Harness wins the bid, it may try to move the project to another area of the state.
This area stands to lose millions of dollars in tax revenues and thousands of jobs if the project does not come to fruition here, township and Lawrence County officials said.