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Lincoln Park Deal in Limbo

PROVIDENCE, Rhode Island – As reported by the Providence Journal: "The shadow of the stalled West Warwick casino proposal cast a pall of uncertainty yesterday over eleventh-hour efforts to salvage a proposed Lincoln Park purchase-and-expansion deal before state lawmakers close up shop this week.

"The principals in BLB Investors shuttled from meeting to meeting with the governor, the Senate president and House leaders, in hopes of ultimately convincing House Speaker William J. Murphy of West Warwick to give them the long-term tax-rate guarantees that they said they need to close today on the financing for their $435-million purchase of the track from Wembley Plc.

"No agreements were reached last night, and it remained unclear if BLB would proceed with the closing on the financing from a consortium of lenders, led by Merrill Lynch.

"…Meanwhile, the BLB delegation is reportedly looking to Senate President Joseph A. Montalbano, whose district includes Lincoln, to explore potential ground for compromise today on one or more issues that key lawmakers in the House have described as stumbling blocks. The two leaders are expected to talk today.

"…The BLB legislation would commit the track to continue paying the state close to 60 cents on every dollar of net revenue from its slots, more than twice what Harrah's has offered to pay on its proposed gambling operation.

"But as last night wore on, it was unclear if the BLB principals and lobbyists got any of the assurances they came to the Rhode Island State House seeking…"

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