DAMNIT!
Penguins owner Mario Lemieux believes there is only "a slim chance" the franchise will remain in Pittsburgh after its lease at Mellon Arena expires in 2007.
Mario Lemieux -- "I think we're really running out of time."
Mr. Lemieux said yesterday that he "absolutely" believes the outlook is that bleak because of the lack of progress toward getting the up-to-date arena team officials have insisted for years is critical to keeping the Penguins here.
"I think we're really running out of time," said Mr. Lemieux, his tone laced with frustration. "We probably ran out of time already. It's been unfortunate that the city and the county haven't been willing to work with us over the last two or three years."
The Penguins' lease at Mellon Arena allows them to solicit offers for the franchise beginning in June 2006, one year before the lease is up.
Executives affiliated with a new arena in Kansas City have publicly expressed interest in acquiring the Penguins, and a group in Houston also is believed to covet them as a tenant for the arena there.
The Penguins' board of directors is scheduled to meet this week, and the long-term outlook of the team is sure to be a major topic of discussion.
"We'll sit down with everybody [to] understand what's at stake with our investment, and what's best for the franchise," Mr. Lemieux said.
The Penguins are one of several groups that will seek the license to operate a Downtown slots parlor and have pledged to put proceeds from that operation into construction of a new building. That, team officials have said, is the only realistic source of funding.
There is no guarantee the Penguins will be awarded the slots license, though. And because it is not expected to be awarded until late 2006 -- and because it generally takes about three years, to build an arena in this part of the country -- the Penguins would face the prospect of spending several more winters in a venue that cannot generate the revenue they believe is needed to make an NHL team financially viable.
"By the time we'd get the arena built, it's going to be another four or five years," Mr. Lemieux said. "Can we afford to stay here for another four or five years and assume the losses? I'm not sure."
Dick Skrinjar, spokesman for Mayor-elect Bob O'Connor, said last night that the new mayor is willing to work with the team to try to find a solution that would provide an arena for the Penguins and the city.
"In three weeks, Bob will be mayor and he's anxious to take up the challenge to work with the Penguins and every party involved to keep the Penguins in town and to pursue a multipurpose arena for the city," Mr. Skrinjar said.
However, he added that unless there is property tax relief in the city, there is no public money available to build such a facility.
"Slots and the slots developer are the best option at the moment. He's anxious to get everybody together to take a look at what's best for Pittsburgh," he said.
County Chief Executive Dan Onorato could not be reached for comment.
The Penguins are projecting a $7 million loss this season, and that figure assumes they will draw near-capacity crowds to most of their 41 regular-season home dates and advance to the second round of the playoffs.
There has been support among some public officials for using slots revenue to finance construction of an arena, regardless of who is awarded the license.
Late last week, however, the Pittsburgh Gaming Task Force declined to endorse that idea. Although that panel does not have a formal say in who gets the license, its recommendations are expected to at least be given consideration by the Pennsylvania Gaming Control Board.
"I really don't know what to think about that," Mr. Lemieux said. "Usually, that's not a good sign, but I'm not sure if they have a big say in who gets the slots. "They can make a recommendation, but at the end of the day, it's going to be up to the Gaming Board to decide what's best for the city and the community and what people bring to the table."
Anne Swager, task force co-chair, said last night that while members declined last week to endorse the use of slots revenue for an arena, that could change.
"I still think it's premature to say that we're not going to back an arena as a giveback. Maybe we will. We're just not at the point of making that decision at this point," she said.
http://www.post-gazette.com/pg/05345/620698.stm
