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Pennsylvania Governor Releases Plan

PITTSBURGH, Pennsylvania – (PRESS RELEASE) -- Pennsylvania Governor Edward G. Rendell today announced a plan to help guarantee the Penguins stay in Pittsburgh that will not only fund a new Arena but do it at no cost to taxpayers.

"Since I took office, I've been committed to doing things differently to address important needs in our towns and cities around the state," Governor Rendell said. "The City of Pittsburgh needs a new arena now and this plan can make that happen using no taxpayer dollars.

"We need a credible plan to replace the Igloo that does not require taxpayers to foot the bill, and will work regardless of what happens with gaming licenses. My plan does that. If we enact this proposal, we can begin planning for the new arena now, not nine months or a year from now when the gaming licenses are awarded," the Governor added.

In February, NHL officials said that absent a new arena, there is a strong possibility that the Penguins will leave Pittsburgh after the June 30, 2007 expiration of their current lease at Mellon Arena.

"Without a plan in place now, the Penguins will start shopping for a new home city, and we risk losing one of the greatest sports franchises in the National Hockey League. Gambling with the Penguins' tradition and legacy on a casino license that may never be granted is a risk I am not willing to take," Governor Rendell said.

Under the Pittsburgh Arena Now plan a $290 million arena could be built and financed using proceeds from a 30-year tax-exempt bond funded by four sources:

Penguins - Operating Expenses and Contribution to Capital

* In 2003, the Penguins said they would be willing to make both an up- front contribution to a new arena and pay an annual lease payment. They offered $8.5 million up front and $2.9 million per year. Voluntary Contribution From The Successful Slots Applicant

* $7.5 million per year as a voluntary contribution from the eventual winning of the slots license should Isle of Capri not succeed. Gaming Economic Development and Tourism Fund

* This fund will generate between $150 and $170 million per year or more to support development projects around the state. $7 million per year would be used for a new arena in Pittsburgh.

Naming Right or Other Arena-Based Revenue

* Selling the naming and advertising rights at the arena will produce more than the $1.1 million per year necessary.

In June 2003, the Penguins produced a report entitled "Balancing All Interests." According to the report, which was published in response to a financing plan that had been developed by the SEA in 2002, the Penguins would commit an upfront payment of $8.5 million toward the construction of a new arena.

"There is no free lunch. But with reasonable contributions from key players this arena can be built with no taxpayer dollars.

"My plan works, and we don't have to roll the dice on an outcome we cannot control - a gaming license. Most importantly the plan can guarantee immediately that Pittsburgh remains home to the Penguins for many years to come."

The Governor also said he has confidence that the gaming commission will consider all appropriate factors and render a decision in the best interests of Pennsylvania property tax payers and the city of Pittsburgh.

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