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Penn National Proposes 'Workable Compromise'
YOUNGSTOWN, Ohio -- Penn National Gaming Inc. believes it has arrived at a “workable compromise” on seating at its proposed Austintown racino, but a member of the state panel considering a necessary license transfer stopped short yesterday of saying approval is in the home stretch.
The Ohio State Racing Commission agreed at is meeting Wednesday in Columbus to take under advisement the latest seating configuration -- its fourth -- that Penn National presented for Hollywood Slots at Mahoning Valley Race Course and is scheduled to meet again next Wednesday to consider the plan.
The new plan calls for 513 enclosed seats with table service and views of the track, and a proposed second phase of 488 enclosed, track-view seats that would be added based on market demand, said Eric Schippers, Eric Schippers, Penn National senior vice president for public affairs. The second phase “would get us to 1,001 total seats that are enclosed that help to preserve the fan experience at Mahoning Valley,” he said.
A proposed third phase primarily of 466 seats of stadium seating with some table seating would involve expanding the building’s footprint beyond the current configuration. Outdoor seating was eliminated, Schippers said, because of the winter racing schedule.
The racing commission must approve the transfer of the thoroughbred license at Penn National’s Beulah Park track outside Columbus to Austintown, where Penn National had already begun site work for its proposed $125 million race track and video lottery terminal facility at the former Centerpointe Business Park on Route 46. Penn National recently halted site work as the Wyomissing, Pa.-based gaming company and the commission wrangled over seating and stall issues at the track.
“We’re hopeful that these plans will finally reflect the commission’s desires to preserve the fan experience and make sure that these seats are enclosed with views of the track. We think that we’ve arrived at a workable compromise that’s a win-win for all involved,” Schippers said. The plan is similar to one the commission approved last week for the Miami Valley facility in Lebanon, he added.
“We’re hoping the commission will consider the plan and be willing to vote on this plan next week,” he continued.
If the commission approves the plan next week, Penn National will immediately order work to resume at the site and hopefully still meet its original window to get the project under enclosure before winter weather sets in and open during spring 2014, Schippers said.
“It’s been a very frustrating process because there has not been objective criteria tgiven to us. So, to some extent from the early days of this, we’ve been throwing darts in the dark,” he remarked.
Whether the latest racing configuration meets with the commission’s approval remains to be seen. During a phone interview following the commission’s meeting, Mark Munroe of Boardman, who Gov. John Kasich recently reappointed to the commission, acknowledged Penn National is being responsive to the commission’s concerns but that commissioners expressed disappointment at the latest proposed changes, which lower the initial seating.
“What is a little disappointing about the track buildout proposal is that it actually contains less seating than the plan advocated at the last meeting,” he said. The plan eliminates the lower-level stadium-style seating that had been proposed in favor of the table seating at the clubhouse level. “Their Phase 2 suggestion looks like it would be ideal for Austintown,” he said.
Schippers noted that at last week’s meeting commissioners expressed the view that Penn National had sacrificed the “fan experience” to hit the seating number. “We’ve really gone back and revisited the plan to put back a positive fan experience per the commission’s direction last week,” he responded.
Still, there remain “a lot of moving parts” to be resolved, including discussions with horsemen over stalls at the track, Munroe said. Additionally, there is an “unresolved issue” over whether Penn National would permit River Downs Race Track in Cincinnati to use Beulah Park while it undergoes renovation this year.
“The good news is I think there is a basis for a good compromise that will not require Penn National to expand the building beyond its original footprint,” Munroe said. He is encouraged the project is moving in the "right direction" and as a result of the delay Austintown will have a better facilty.
Had the commission voted Wednesday, Austintown Trustee Jim Davis, who attended the meeting, believes there would have been at least a 3-2 vote in favor of Penn National’s plan. “They’ve really come to play. They showed once again why they are the No. 1 operation for pari-mutuel racing in the country,” he said.
“I think next week you’ll see a vote in favor of this racetrack,” Davis predicted.
State Sen. Joe Schiavoni, D-33 Boardman, described the plan presented Wednesday as the “most comprehensive so far.” He, too, hopes that the commission will approve the license transfer next week.
Penn National and the commission “both make good points and the both are doing the best they can” for their interests, Schiavoni said.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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