Bob Smizik: It's time for politicians to do their part for arena

Penguins do their part for arena; it's politicians' turn
Saturday, October 07, 2006
Pittsburgh Post-Gazette

There have been few pieces of local government business more widely misunderstood in recent years than the alternate arena financing proposal known as Plan B.

Plan B will be employed only if Isle of Capri is not awarded the license for the Pittsburgh slot machine casino. If Isle of Capri wins the license, it has pledged $290 million toward construction of an arena. If Isle of Capri does not win, and knowledgeable people seem to think it won't, Plan B will be used to construct the arena. It calls for contributions from the casino group that wins the license, the Penguins and a slot-financed state economic-development fund.

The precise level of misunderstanding concerning Plan B was best demonstrated by the words Thursday of City Councilwoman Tonya Payne, who, in a stunning lack of understanding of the issue, said, "I think Plan B is absolutely ridiculous, Why should [taxpayers] pay for an arena when somebody else will do it for free."

It is this amazingly short-sighted view that is confusing the issue.

For starters, Ms. Payne doesn't seem to realize this is not about what's best for the Penguins but what's best for the region. It's not about building an arena, it's about which casino group can bring the most money to the region. If another casino operator can do that better than Isle of Capri, and thus bring more tax relief and more money to fund other projects, it should get the license.

That's why there's a Plan B.

To put it plainly, if you love the Penguins, you should love Plan B. If you love the Penguins and you are opposed to Plan B, well, you're an idiot.

Plan B is not in competition with the Isle of Capri. Plan B is in place only if Isle of Capri doesn't win the license. If either Forest City Enterprises, which is considered the favorite, or PITG Gaming LLC wins the license, then and only then is Plan B employed.

If Isle of Capri doesn't get the license and there is no Plan B, it's goodbye to the Penguins.

This is all back in the news because the Penguins have a new owner, and he is a man who has no ties to the city and who has shown an interest in the past in moving the franchise. This is not to denigrate Jim Balsillie. By most indicators, he is the ideal owner and should be treated as such.

In his first public news conference Thursday night at Mellon Arena, Balsillie understandably took the company line and pronounced himself fully behind the Isle of Capri's bid for the slot license. He also kept his distance from Plan B.

He said, "I haven't seen any detail on Plan B. It's kind of a moving target. It's all so darned fluid on a bunch of stuff."

If Plan B can be confusing, it's up to County Executive Dan Onorato and Mayor Luke Ravenstahl to clear up the issue.

Balsillie is exactly the kind of deep-pocketed owner a Pittsburgh team needs. His wealth, combined with a new arena that will produce more revenue, should, under the economic system now in place in the NHL, enable the Penguins to compete with any franchise in the league.

This is a guy you don't want to get away. You don't want to give him the slightest reason to look elsewhere.

In correctly aligning himself with Isle of Capri, Balsillie likely is closing the door on any official talks with local government about Plan B. That doesn't mean there can't be unofficial talks. That doesn't mean Onorato and Ravenstahl shouldn't be proceeding at full speed to clear up any doubts about Plan B and also make it more palatable for the new owner.

It has been broadly hinted there is negotiating room in some of the funding expected from the Penguins under Plan B. Currently, Plan B calls for the Penguins to put up $8.5 million in advance of construction and $4 million annually. There's said to be wiggle room in the $4 million. If that's so, the politicians should start wiggling.

The Penguins should be expected to put up part of the financing for the arena, just as the Pirates and Steelers did for PNC Park and Heinz Field. They are not in position to make the kind of contribution the Steelers did, but their payment should be somewhat in line with the Pirates'.

Waiting until the slot license is awarded to fine-tune Plan B will be too late. The Penguins have an ideal owner waiting to buy the team, and everything must be done to make certain he has no reason to take the team elsewhere.

The Penguins have done what is required of them. It's up to the politicians to make this work.