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Racino takes step closer to Mahoning Valley
By Marc Kovac
COLUMBUS
The state racing commission signed off on rules Tuesday allowing a new “racino” in the Youngstown area, sending the requirements to two other state panels for review and setting up a potential groundbreaking before the end of the year.
The new rules could take effect within about 90 days, meaning the racing commission would be in a position to approve track relocation applications before the end of the year. Penn National already has submitted the required paperwork to racing officials to move a suburban Columbus track to Austintown.
“We can’t move forward until the rules are effective,” said Robert Schmitz, commission chairman. “It would be the fourth quarter when [the rules] become effective.”
Earlier this month, Penn announced it had filed the required licensing paperwork with lottery officials and formally requested that the state racing commission sign off on its relocation plans.
“We are hopeful we can receive state approval in a timely manner, allowing us to break ground this fall on the new facilities in the Mahoning Valley and in Dayton,” Tim Wilmott, president and chief operating officer of Penn, said in a released statement.
The new tracks will feature restaurants and bars and up to 1,500 video-slot terminals. They are expected to employ “1,000 direct and indirect jobs, and to generate approximately 1,000 construction jobs,” according to Penn.
The Austintown facility, to be known as “Hollywood Slots at Mahoning Valley Race Course,” will operate as a thoroughbred track and will be located on 184 acres in the Centrepointe Business Park near the intersection of Interstate 80 and state Route 46.
Bob Tenenbaum, Penn spokesman, said there has been some preliminary site work at the Austintown property. But, he added, “It’s unlikely that we will do anything substantive until after they’ve approved our application to relocate and issued the VLT permit. ... I think we’re still hopeful that we can break ground in the fall.”
Penn earlier reached an agreement with Gov. John Kasich to relocate its tracks, and Tuesday’s racing commission hearing was the next step in the process of finalizing requirements for the moves. The rules next will be reviewed to determine their regulatory impact, then will be considered by the state’s Joint Committee on Agency Rule Review before taking effect, Schmitz said.
The rules proposed by the racing commission would require Penn National to pay a $75 million relocation fee to move its existing track, Beulah Park, to 700 N. Canfield-Niles Road near Youngstown. They also require a comparable payment for the relocation of a Toledo track, Raceway Park, to Dayton and $25 million for the relocation of Thistledown in Cleveland to the Akron-Canton area.
Half of the relocation fees would have to be paid once video slots become operational. Tracks would be allowed to operate temporary facilities while new digs are under way, and relocation applications would have to be submitted to the state racing commission by mid-June 2014.
The proposed rules require a minimum capital investment of $150 million for tracks offering video slots, with improvements completed within three years of the issuance of a license.