30/07/2005 00:00
Casino likely to be followed by new hotel
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A gambling consultant told Pittsburgh's Gaming Task Force Thursday to expect a major hotel and an entertainment venue to quickly follow once a slot machine casino is built in the city.
Consultant Jennifer K. Lendler, president of Philadelphia-based Alea Advisors, said a Downtown casino would likely spark development of a new hotel and a concert or arena-type entertainment venue in three to five years.
She bases her conclusions on the region's population density and the likelihood that a Pittsburgh casino would pull patrons from Ohio, West Virginia and Maryland.
"You're going to be the vortex that everyone is going to come to," Lendler told about two dozen board members yesterday. "Pittsburgh is in a good spot."
The 23-member task force was created in March by Mayor Tom Murphy to recommend a location and design for a new casino to the state Gaming Control Board, which will examine bids from potential casino operators.
Pittsburgh is to get one of the state's 12 casinos, and Philadelphia will get two. The mayor's advisory panel is operating on a $50,000 grant from the Heinz Endowments; its members agreed in May to spend as much as $20,000 on a consulting firm.
Lendler pointed out a few obstacles to enticing casino operators into building a slots parlor in Pittsburgh. She said the $50 million price tag on each gambling license and the 52 percent tax on casino proceeds could make it harder to attract operators.
Lendler estimated the casino would need 100,000 square feet of floor space for a minimum of 1,500 slots -- state law allows up to 5,000 -- parking for at least 3,000 vehicles and two to three restaurants and bars. Such a building could take up 10 to 20 acres of land. She said a casino here likely would employ 1,500 to 2,000 people.
When asked about the feasibility of a multistory venue so a casino could be built on a smaller lot, Lendler said that type of design wouldn't work well.
"People just don't like to be on three different levels," she said. "You're going to find that the first level is going to fill up because people want to be around other people, so why would they go to a third floor?"
Gaming board chairwoman Anne Swager said the board will continue working with Lendler to develop a market study for the city, including a profile of who would play the slots in Pittsburgh, how much revenue a casino would generate and what businesses and restaurants might spring up around it.
The task force has extended its deadline for submitting a public report from October to December because casino-racing venue licenses won't be available until the second quarter of 2006, Swager said. Stand-alone casino licenses would come sometime after that.
source:Pittsburghlive.com
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