Penn National Remobilizes Work Crews at Racino Site
YOUNGSTOWN, Ohio -- Work will resume as soon as construction crews can be remobilized at the site of the Hollywood Slots at Mahoning Valley Race Course in Austintown, following Wednesday’s approval of the thoroughbred license for the track.
Under the compromise reached with the Ohio State Racing Commission, Penn National must construct the seating it had proposed last week for both Phase I and Phase II at the racino before its planned opening next spring.
Work was halted at the Austintown site and at a proposed track in Dayton a month ago when the commission held back on approval of license transfers necessary for the projects over concerns regarding track-view seating and accommodations for horses and riders.
The commission approved the transfers at a meeting Tuesday in Columbus. The agreement will allow Penn National to transfer the thoroughbred license from its Beulah Park track in Grove City, outside Columbus, to Austintown, where it is building a racino off Route 46 at the site of the former Centerpointe Business Park.
“It is a big day for the Mahoning Valley and for Dayton. It allows us to get shovels back into the ground and allows us to proceed on our half-a-billion-dollar investment in Ohio,” commented Eric Schippers, senior vice president for public affairs for the Wyomissing, Pa.-based gaming company. Penn National is spending $250 million at each of the two sites, inclusive of license transfer fees and state licenses to operate video lottery terminals at the tracks.
“We think it’s a good compromise that allows us to get under way again and will preserve the fan experience” and balance the interests of the racing commission with Penn National’s “needs as a public company to get a reasonable return on for our shareholders,” he added. “It’s a win-win for all the parties involved. It was a lengthy work in progress getting to this point but having reached it now we’re very pleased with the outcome,” Schippers said.
“It’s a great day for Austintown,” remarked Austintown Township Trustee Jim Davis, who added that he “couldn’t be happier” with the racing commission’s decision. “It’s so exciting finally for one of those promises that has been made to the Mahoning Valley time and time again -- one has finally come to fruition,” he said.
Schippers said Penn National would “give the go-ahead to our construction teams immediately” to remobilize and resume work at the sites.
Under the plan approved Wednesday, the Austintown racino must open with the 513 enclosed seats it had proposed last week under the first phase of its revised plan and the 488 enclosed, track-view seats Penn National had planned to add contingent on market demand, giving it 1,001 seats at opening. “We think it’s a compromise that will allow us to get back under way with construction and [we] appreciate the commission for working through this with us toward a successful resolution,” Schippers said.
“Phase I and Phase II will both have to be completed prior to the start of the racing season. That is a requirement and Penn has agreed to that,” confirmed Mark Munroe of Boardman, a racing commission member. “They tell us they are going to get their construction crews back on the site as quickly as possible. It may take just a couple of days but we anticipate just as quickly as crews can remobilize the work will recommence at the Austintown site.”
Work on the site is expected to create about 1,000 construction jobs. Operation of the racino is expected to create another 1,000 direct and indirect jobs.
Munroe also said agreement has been reached between Penn National and horsemen on “minimum requirements” for barns, stalls and dormitory facilities at the track. “We’re certainly satisfied that enough progress has been made in that area to go forward,” he said. Although conversations continue between the parties to “lock down those numbers,” Munroe reported he can say “with a high degree of confidence that where they’re at right now meets our minimum requirements.”
A third phase Penn National had proposed last week remains a possibility contingent upon market demand but is not part of the agreement for the license transfer. That would add 466 seats of stadium seating and expand the building’s footprint.
Before work was halted on the project a month ago, Penn National had anticipated an opening for the Austintown Hollywood slots during the second quarter of 2014.
“We don’t anticipate any real significant delay,” Schippers said. Penn National had earlier expressed concern that changes requested by the racing commission could delay the project by as much as six months. “We’re hopeful we can minimize the delays and absent any kind of bad winter months, that we can hit our original target date or not be too far off,” he said.
“The real takeaway is there’s been a modest delay for this project,” Munroe remarked. “But as a result, Austintown and the Mahoning Valley are getting a better facility. It’s going to be better for the race fans. There’s going to be a nice mix of both stadium seating and track-side seating with table service. We’ve gotten to the point where we think the horsemen have the minimum necessary facilities to conduct live thoroughbred racing in Austintown. I think for all parties concerned it’s a good deal.”
Copyright 2013 The Business Journal, Youngstown, Ohio.
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