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November 6, 2006

Forest City to pay $50M plus 43% annually to PA

Brewed Fresh Daily, a Cleveland news and opinion blog, carried this excerpt from The Beacon Journal, which points out that, if Issue 3 passes, Forest City Enterprises would be making out like a one-armed bandit in Ohio compared with a prospective Pittsburgh casino deal.

But Forest City won’t have to sweeten the pot to land the Cleveland deal. All the developer needs is a yes vote on Issue 3.

The competition among three companies for the privilege to operate a casino in Pittsburgh is so heated that all three have pledged to build or help build a new arena for the Penguins hockey team.

The winner, expected to be chosen before year’s end, also will pay $50 million to the Commonwealth of Pennsylvania in a one-time licensing fee and 43 percent of annual gross slot machine revenue for property tax relief, economic development and tourism promotion.

One of those bidders is a partnership led by Forest City Enterprises, the same developer that also would like to build a casino at Tower City Center in downtown Cleveland.

But Forest City won’t have to sweeten the pot to land the Cleveland deal. All the developer needs is a yes vote on Issue 3.

BFD's conclusion?

I'd say we are getting the shaft.

Posted by lumi at November 6, 2006 11:25 AM