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Racino project receives several bids
By MARY GRZEBIENIAK
NEW CASTLE, Pa.
Multiple bids have been received for the Valley View Downs project, which will be auctioned by a bankruptcy court Oct. 20.
Lawrence County Commissioner Dan Vogler said Tuesday that commissioners “are all very pleased with the news” and noted that the fact that several bids were received means “there is still life in the project.”
A failure to draw any bids would have meant the end of the long-awaited multimillion dollar racetrack/ casino project off U.S. Route 422 in Mahoning Township. The project has been stalled for more than two years. During the lengthy application process for a Category 1 license to operate 3,000 slot machines, Valley View Downs’ original lenders pulled out as the economy began to decline. The company could not find new lenders, and in October 2009, Valley View Downs filed for Chapter 11 bankruptcy protection, followed in March, 2010, by its parent company, Centaur LLC of Indianapolis and two other Centaur subsidiaries.
Vogler made the announcement at the end of Tuesday’s regular commissioners meeting. He said Valley View Downs’ general manager of gaming, Joe DeRosa, contacted the commissioners’ office earlier Tuesday and informed them that bids had been received, though Vogler said the number of bids and bidders’ names were not released.
The U.S. Bankruptcy Court in Wilmington, Del., now will review and qualify the bids before a formal auction in New York City on Oct. 20, Vogler said. If there is a successful bidder, a preliminary application must be filed by Dec. 31 to the Pennsylvania Harness Racing Commission to transfer the harness-racing license, currently held by Valley View Downs, to the new owner. The harness-racing license awarded to Valley View Downs was the fourth and final of the Pennsylvania licenses that by law must be combined with a casino.
Vogler noted, “The Harness Racing Commission is on record saying that the license is specific to the site in Lawrence County.”
If new owners successfully transfer the harness-racing license, they still would have to apply for a gaming license. That could take months or years unless the successful bidder already has gone through the process, officials have said.
Vogler added that for their part, commissioners will continue to let state officials know that “this is our No. 1 economic- enhancement project for Lawrence County.” He said commissioners also will continue to be represented at Harness Racing and Pennsylvania State Gaming Commission meetings to show that Lawrence County strongly supports the project.
Commissioner Rick DeBlasio said, “I’m optimistic. We just have to let the process play out now.”