Austintown and Dayton want their half-million from racinos

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Ohio Sen. Joe Schiavoni, of Boardman, D-33rd

Staff/wire report

AUSTINTOWN

Racino developer Penn National Gaming Inc. and the state of Ohio are in talks over who has to pay Austintown Township and Dayton the $500,000 each was promised when horse racetracks were relocated to their communities.

The first of the annual $500,000 payments is due Dec. 31, according to state law.

Dayton Mayor Nan Whaley says she doesn’t care if the check comes from Penn National Gaming Inc. or the state — she just wants Dayton to get the cash.

“You know, $500,000 is nothing to sneeze at,” she said.

“The bottom line is that Austintown and Dayton deserve this money. They were promised this money. They budgeted for this money,” said Ohio Senate Minority Leader Joe Schiavoni of Boardman, D-33rd.

The payment responsibility is clearly Penn National’s, said Rob Nichols, spokesman for Gov. John Kasich.

All sides met last week but a follow-up session has not yet been scheduled, Nichols said.

Penn Gaming spokesman Bob Tenenbaum said, “Given that this dialogue is ongoing, we feel it is not appropriate to comment on the specifics at this time.”

Schiavoni and state Sen. Bill Beagle, R-Tipp City, said they are working to make sure the money is delivered to Dayton and Austintown by the end of the year.

The two lawmakers said the question is whether the money should come out of a track relocation fund to which Penn National already is paying $15 million a year or if it should be “fresh” money on top of that.

If the $500,000 payments to Dayton and Austintown are to come out of that transfer money, it’ll require legislative changes because state law already prescribes how that money will be allocated, Schiavoni said.

“We all want to make sure this is done right and by the end of the year,” Beagle said.

Ground was broken for Hollywood Gaming at Mahoning Valley Race Course in May 2013. Live thoroughbred racing began there Monday, nine weeks after it opened to Mahoning Valley residents Sept. 17 with 850 video lottery terminals.

In addition to the $125 million in construction costs, Penn National paid Ohio a $50 million fee for its video lottery terminal license and an additional $75 million for permission to relocate the racing license from the Beulah Park racetrack in Grove City, bringing the company’s total investment to $250 million.

Hollywood Gaming at Dayton Raceway opened Aug. 28 at the former Delphi plant site on Wagner Ford Road. The racino, which cost $250 million to develop, has 1,000 video lottery terminals and 1,000 grandstand seats for viewing live harness racing.

Dayton Raceway’s license formerly belonged to Raceway Park in Toledo, which ran its last race in September 2013. Penn National agreed to pay $75 million to transfer the license to its new Dayton track.