YOUNGSTOWN, Ohio – Penn National Gaming Inc. says it can have its proposed Austintown racino up and running in 18 months -- but 18 months from when remains the unanswered question.
An agreement announced Friday between Penn National and the state that helps pave the way for the company to relocate its two Ohio racetracks, including its Beulah Park track from the Columbus suburb of Grove City to Austintown, is "a step in the process but it's a pretty significant step in the process," said Penn National's Ohio spokesman, Bob Tenenbaum.
"Unfortunately, given the number of pieces that have to fall into place, it would be presumptuous to put a timeline on a groundbreaking," he said. A number of issues must be resolved, not the least of which is a lawsuit by the Ohio Roundtable, a conservative group that opposes gambling, to block the opening of any racetrack casinos, which would have video lottery terminals, in the state.
Penn National officials announced just over a year ago that the company planned to build a harness track with VLTs at the site of the undeveloped Centerpointe business park on Route 46 in Austintown. Last month, in documents filed with the Securities and Exchange Commission, the Wyomissing, Pa.-based company disclosed it planned to transfer its thoroughbred racing license to the Austintown site, where it wants to develop a $200 million racetrack.
The track complex could be completed 18 months after groundbreaking but for Penn National to commit to a groundbreaking date before the lawsuit is resolved "would be unlikely because the lawsuit challenges the whole VLT proposal among other things," Tenenbaum said.
The Ohio Roundtable filed suit last October in Franklin County Court. The suit claims that the plan to open racetrack casinos, expand the Ohio Lottery and absolve casino owners of tax liabilities requires amending the Ohio Constitution.
The judge was to hear arguments to dismiss the case last week but that hearing was postponed, and a status conference was held instead. “I don’t think we know at this point what the court’s timetable is,” Tenenbaum said.
The track relocation faces additional hurdles as well, said state Sen. Joe Schiavoni, D-33. First, Penn National has to apply with the racing commission to approve the move from Beulah Park to Austintown. The next racing commission meeting is April 12 and Penn National officials indicated “they were going to do everything they can” to get their application submitted in time for the meeting, he said.
Additionally, the state has to approve House Bill 386, casino legislation approved by the Ohio House of Representatives and waiting approval by the state Senate. The Senate heard sponsor testimony on the bill last week.
“The fact that the lawsuit is pending doesn’t mean that they can’t do the first two things,” Schiavoni said.
“It’s also significant that the governor’s office, as part of the agreement, has indicated that it will do everything possible to try to move forward those pieces that the racing commission and the lottery commission control,” Tenenbaum said. He also said the chairman of the senate committee hearing H.B. 386 “indicated that he wanted to move the legislation pretty quickly.”
Austintown Township officials are pleased at the news the project is advancing.
“It’s just fantastic. It’s just one more hurdle that we’ve overcome in the race to get the casino into there,” said Trustee David Ditzler.
“We’re elated by the news that Austintown is one step closer to being the host community of a racino,” which will “inevitably” become the township’s largest employer, said Ditzler’s colleague, Trustee Lisa Oles. “It also means that the housing market in our township will begin to flourish so we’re very excited about the news.”
Still, Oles has a couple of concerns. The first regards the status of $2 million Mahoning County commissioners had set aside for infrastructure improvements at the Centerpointe site when it was rezoned. Second, Ohio Edison’s regional director “is indicating to me that it may take up to a year or longer for engineering plans just for the electric for that project,” she said. “I’m sure those are things that Penn National will work out here very shortly but I don’t think it’s something that’s going to happen in the next few months.”
Copyright 2012 The Business Journal, Youngstown, Ohio.