Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Racino-Related Development Also Off and Running
AUSTINTOWN, Ohio -- Bedecked in a wide-brimmed hat that would have fit in with the colorful and ornate chapeaus normally seen at the Kentucky Derby, Austintown Trustee Lisa Oles could hardly contain her enthusiasm.
“I made it myself! I did!” she exclaimed.
Oles was pleased with more than her headgear handiwork Thursday afternoon, as she stood at the site where Penn National Gaming Inc. anticipates opening the long-awaited Hollywood at Mahoning Valley Race Course. Oles was among the community and business leaders on hand for yesterday’s ground-breaking ceremony at the site of the $125 million project, which will include a 1-mile thoroughbred race track and 1,001-seat track grandstand (READ STORY).
The project is expected to create 1,000 construction jobs and another 1,000 direct and indirect jobs once the racino is up and operating.
“Today is a very exciting day for Austintown and the Mahoning Valley. Today signifies jobs for people. It signifies more commercial growth for our community and it’s a step in the right direction,” Oles remarked. “Today is a step toward monumental changes that will take place very shortly in our township.”
Those changes include two new nearby lodging options that are expected to begin construction this summer. Candlewood Suites plans to build a hotel behind Holiday Inn Express and on Route 46 and Home2 Suites by Hilton is locating on Interstate Boulevard.
Darren Crivelli, Austintown zoning inspector, is waiting for the Candlewood Suites developers to contact him regarding a preconstruction meeting for the 77-room project. “They said they wanted to fast track it and we’re ready,” he said. The 87-room Home2 project, which is being developed by Meander Hospitality Group, Canfield, likely will get under way late summer, he anticipated.
“We’re probably going to see ground being moved on Candlewood within the next couple of weeks,” Trustee Jim Davis predicted. He also projected a late August start for Home2.
Oles doesn’t want the development to stop there. She and other township officials are trying to convince property owners on Clarkins Drive nearby to develop an indoor water park and hotel, citing the abundant water supply available from Meander Reservoir.
During Thursday’s celebration, earthmoving equipment could be seen east in the distance behind the tent where speaker after speaker lauded the cooperative efforts that brought the Hollywood at Mahoning Valley Race Course project to Austintown, which Tim Wilmot, president and chief operating officer of Penn National Gaming, anticipated would open in the second half of 2014. That is slightly later than the second-quarter opening that had been projected in recent months.
“We lost a couple months,” he acknowledged, as Penn National negotiated -- in often contentious meetings -- with members of the Ohio State Racing Commission over the number of track-view seats the racino would open with. Once the Hollywood-themed racing and gaming complex, which will have up to 1,500 video lottery terminals, is up and running, “That issue is going to be long forgotten,” Wilmott predicted.
“We reached a compromise,” he remarked. “We had a disagreement, we reached an accord and we’re moving forward.”
“There’s no doubt that this is an exciting day for the Mahoning Valley but it’s also an exciting day for racing in Ohio,” said Mark Munroe, a member of the racing commission and chairman of the Mahoning County Republican Party. “Over the past 20 years we’ve seen a steady decline in racing but this really does mark a turnaround for racing in Ohio. Yes, we’ve had some challenges getting here but, as has been said by so many people, few good things come without some struggle and some difficulty, but because of that struggle we’ve got a better facility.”
The racing commission “obviously wanted more seats” but Penn National, based on its experience, didn’t believe there needed to be as many when the racino opens, Wilmott said.
“There’s no question this is going to be a first-class operation,” he said. “The area is going to be very proud of what is going to be delivered here.”
Foundation work for the grandstand building and track site work is beginning, Wilmott said. “That’s probably going to take three or four months,” he explained. Ideally the building will be enclosed before winter comes “and that’s going to be our challenge,” he added.
“In early fall this year, you’ll begin to see the structure take shape,” said Jason Jones, general manager with Turner Construction, Cleveland, which is managing the project. Both the steel and concrete packages have been awarded “and as the schedule progresses, they’ll start on site,” he said.
About 30% of the project has been awarded to local contractors, he said, including the concrete package, which was awarded to Mike Coates Construction, Niles. “They’ll start in the next couple of weeks after we get the earth work done and establish the building pad,” Jones said.
So far, about 75 members of the area building trades affiliated with the Western Reserve Building and Construction Trades Council have been working on the site, said Don Crane, president. “That’ll grow considerably as the project goes along,” he said. “We should have a couple of hundred members here within six to eight weeks.”
Casino jobs pay between $35,000 and $40,000 annually at other Penn National facilities across the United States, Wilmott said. “Now a lot of that comes in the form of tips from customers as part of their compensation in many of the jobs, not all.” Penn National provides full benefits including health-care, vision and dental coverage, he said.
“These are going to be good-paying jobs and we think that’s going to stimulate and generate a ripple effect with the community with restaurants, with gas stations, with hotels that will all benefit from the visitation and the employment that we’re going to bring here.”
Oles confirmed that more restaurant operators are considering a location in Austintown.
One restaurant already located near the track site, Quaker Steak and Lube, which catered the Austintown event as well as Penn National’s Dayton groundbreaking. “We’ve got a good relationship with” Penn National, said Ken Jakubec, a manager with the nearby restaurant. In addition to increased business during construction, he expects the restaurant to attract patrons from then racino and hotels that are being developed.
“This whole area’s going to blow up,” he said.
MORE:
So Many to Thank as Shovels Turn at Racino Site
Penn National Breaks Ground for Racino
Copyright The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.