Public/private partnership will aid racino
NEW CASTLE, Pa.
In a unique public/private partnership announced Tuesday, Lawrence County Commissioners pledged up to $50 million of gaming revenues the county would receive from a proposed racetrack/casino off U.S. Route 422 in Mahoning Township to “jump-start” the project.
The money would come from up to half of the 2 percent of gaming revenues the county would receive from the “racino” proceeds under state law.
The private/public partnership, passed unanimously by commissioners, is the first of its kind in Pennsylvania and possibly the first in the nation, according to Michael Bova of Boenning & Scattergood, the Pittsburgh investment banking and brokerage firm commissioners have hired to help work out the details. It is possible the county even could become a co-owner of the racetrack, officials said.
Though no one can say how much the track would bring in, officials said a Pittsburgh research corporation projected that the racetrack could make $516.3 million in “terminal slot revenue” or gaming proceeds in the first three years. If this were the case, the annual figure would be approximately $172 million. Two percent of that, the county’s share, would be $3.44 million, and the amount pledged to loan payback in Tuesday’s resolution would be half of that or $1.72 million.
Commissioner Steve Craig noted that the racetrack’s new owner, Pittsburgh-based American Harness Tracks, must meet the Pennsylvania Harness Racing Commission’s deadline to have $150 million funding in place by Sept. 12 and a management agreement to operate the facility. With so many potential jobs at stake, Craig said, “We can no longer sit on the sidelines; we need to be a part of this.”
American Harness Tracks purchased the project from Centaur LLC in a bankruptcy auction and has been working for months on securing financing, transferring the harness-racing license and moving the project to fruition.
Once American Harness Tracks is awarded the harness-racing license, they also must obtain a Category 1 gaming license from the Pennsylvania Gaming Commission to allow slot machines and table games at a casino in the proposed development.
Craig and Commissioners Dan Vogler and Richard DeBlasio were clear that they gladly will forgo some of the revenue the county would receive from the track in order to ensure development of the project, which they said would create 600 to 1,000 full-time jobs, 900 construction jobs and 1,400 offsite related jobs as well as provide an estimated $25 million annual payroll.
Another motivating factor for the county’s involvement is possible development in nearby Mahoning County, Ohio, of a similar racetrack complex.