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New Penguins Arena Could Cost Taxpayers Due To Casino Woes

North Shore Casino Outcome Plays Major Role

Posted: 4:02 pm EDT August 12, 2008Updated: 5:17 pm EDT August 25, 2008

The new Pittsburgh sports arena is set to break ground on Thursday, and Penguins owner Mario Lemieux said the project will go on with or without the North Shore Casino.

But in the end, Channel 11 News has learned, taxpayers could get stuck with the bill.

Funding from the North Shore Casino is supposed to pay for the new arena, but Lemieux didn't seem at all worried when he spoke with Channel 11 News earlier this week.

"Everything is all tied down from our end, so hopefully that gets resolved pretty quickly," he said. "But as far as the building is concerned, everything is on schedule."

The casino project was put on hold when owner Don Barden ran out of money. A new investor, Neil Bluhm, is attempting to salvage the project, but he must get approval from the Gaming Board.

So, with all of the turmoil, why isn't Lemieux worried about funding for an arena?

That might be because, as Target 11 has discovered, the state has guaranteed the money for the arena even if the casino owner, whoever that might end being, fails to make the payments, and taxpayers could be stuck with the tab.

"Everybody thinks it Mr. Bluhm, but the taxpayers are obligated to pay for this arena if Mr. Bluhm doesn't come through," said Republican Sen. Jane Orie.

Orie lashed out at Democratic Gov. Ed Rendell, accusing him of striking the deal behind closed doors.

"The reality is that the governor shouldn't have done that without notification," said Orie. "That's wrong."

Rendell's spokesman, Chuck Ardo, defended the agreement, but he said he's confident the casino owner will make the payments.

"This was laid out when we struck the deal, and I'm sorry it wasn't explained enough for the good senator," he said.

Orie said she commends Bluhm for stepping up, but she believes the entire process should be halted and opened up for bidding from any interested parties. Bluhm is scheduled to go before the Gaming Commission on Thursday, the same day as the arena groundbreaking.

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