Madame Chairman and Members of the Pennsylvania Gaming Commission.  I respectfully submit the following comments and testimony for your consideration concerning the Joint Application of PITG Gaming, LLC and Holdings Acquisition Co., LP for approval of the Reorganization, Change of Control and Recapitalization of PITG Gaming LLC and other relief for the Pennsylvania Gaming Board hearing on August 14, 2008. 

First, it is important that the Pennsylvania Gaming Control Board make its primary concern the careful consideration of the Joint Application.  The approval or disapproval of this Joint Application will determine whether one of the most potentially profitable gaming venues in the state will move towards completion and opening in the near future or whether it will be delayed for a substantial period of time.   As a result of the important public interest in the completion of the casino development project in the City of Pittsburgh, I would request this Board to subject the Joint Application to a careful, deliberative review process without delay.  It is important that the Board perform its “due diligence” review of all the applicants and financial contributions to this project as proposed in the Joint Application.  However, I believe that it is important to note that in this instance, the parties to the Joint Application have been subject to previous scrutiny of the Board for this project and for other gaming projects in the Commonwealth.   Although that does not diminish the importance of the Boards careful review of each party to the Joint Agreement as well as their financial contribution to the project, it does not require the Board, in this instance, to start from a “blank slate.”

Second and perhaps more importantly, I would request that the Board insure that the commitments previously made by PITG to the City of Pittsburgh, County of Allegheny and Commonwealth and included in the Board’s Statement of Conditions to Category 2 Slot Operator License #F-1361in paragraphs 55-57 be honored and included in any order approving the Reorganization, Change of Control and Recapitalization of PITG Gaming, LLC application.  Further, as you know, these obligations were:

 55.  To fulfill all obligations pursuant to the letter agreement between PITG Gaming, LLC and the Northside Leadership Conference dated April 17, 2006 which provides for, inter alia, a $1,000,000 annual grant to the Northside Leadership Conference for 3 consecutive years with the initial grant of $1,000,000 due at the end of the 10^th month after the opening of the casino.

56.  To fulfill the commitment made at its suitability hearing on November 21, 2006 to provide $1,000,000 per year for 3 consecutive years for the redevelopment of the Hill Section in the City of Pittsburgh commencing within one year of the opening of the gaming facility

57.  To fulfill, if required, its letter agreement of July 12-13, 2006  with the Sports & Exhibition Authority of Pittsburgh and Allegheny County that provides for, inter alia, a cash contribution of at least $7,500,000 per year for a period of 30 years in support of the development and construction of a multi-use arena in the City of Pittsburgh.

Statement of Conditions to Category 2 Slot Operator License #F-1361, p 8.

Third, it is important that the Board consider this application in a timely fashion as the City of Pittsburgh and Allegheny County cannot be expected to experience further delay in the distribution of badly needed revenue from the gaming proceeds.  As provided in Act 71, both entities are scheduled to a “local share” of gaming revenues.  In addition to this, the economic development and tourism revenues that are anticipated from the construction and completion of this important project should not be subjected to further undue delay.  Therefore, it is important for the Board to devote complete attention to the review and decision regarding this agreement and application.

Finally, I respectfully remind this Board that its primary responsibility is to protect the public interest; in particular, the interest of the residents of western Pennsylvania.  It is essential that the Board act in a manner that protects the financial commitments made to the City of Pittsburgh, Allegheny County and surrounding communities.  While recognizing that a transfer is permissible under Section 1328 of the Gaming Law and there is precedent, there needs to be heightened scrutiny so that there are no further delays since the casino is already in the construction phase.  The enactment of the Pennsylvania Gaming Act was intended to provide a new revenue source for local and country government as well as economic development opportunities for Western Pennsylvania.  It must still remain this Board’s primary objective.