The Tribune Democrat, Johnstown, PA

August 19, 2010

State: No licenses are available for racetrack

Bernie Hornick
bhornick@tribdem.com

JOHNSTOWN — The state racing commission said Thursday that no licenses are available to build a Johnstown racetrack – but one could open up next week.

The Pennsylvania Harness Racing Commission is expected to decide at a meeting Thursday whether to extend a deadline to open a track in the New Castle area.

Centaur Inc., which is in bankruptcy, was unable to open Valley View Downs in a two-year window ending in September 2009, and received a one-year extension from the board, said commission spokesman Justin Fleming.

Centaur now wants a further two-year extension but the commission is under political pressure to deny that request.

“There has been some talk of that (freeing up the license),” Fleming said.

Centaur received the last harness-racing license in Pennsylvania, which The Associated Press said qualified it to apply for a casino license. However, its project financing fell through in 2008.

American Harness Tracks Inc. on Wednesday released a letter it sent to the commission saying it wants to open up a $200 million racino in Johnstown. The ambitious plans also call for a convention center, water park and wedding center.

Company COO Daryl Price said in the letter that the company already has commitments for horse training and breeding.

Fleming acknowledged that state Sen. John Wozniak, D-Westmont, is among those lobbying for gambling in the Johns-town area.

“So, yeah, sure, there’s been some interest in this. Absolutely,” he said.

Price did not return a call for comment Thursday, but told a Pittsburgh newspaper the company already has options on an unspecified rural location near the Flood City.

The racino could provide up to 1,500 permanent jobs.

Initial reaction from the Johnstown business community was positive.

“Any type of new investments – I don’t care if it’s gambling, making widgets – any type of major investment that creates jobs, I’d be very excited about it,” said Ron Repak, head of the Johnstown Redevelopment Authority.

“We need to increase this tax base here if we’re going to survive.”

He said jobs are needed now.

“We’re still a distressed municipality here. We’re not growing in population. We don’t have major industries rolling into town,” Repak said.

As to any potential downside, Repak hinted at the prospect of gambling addiction – but quickly added that gaming outlets by law must contribute to counseling programs.

As a further plus, he said, such a major complex could lead to road improvements.

Businessman and civic leader Mark Pasquerilla echoed Repak.

“I’m in favor of anything that brings a bigger tax base and more jobs into Johnstown,” he said.

“People are job-hungry here and are generally supportive of economic development. Something that significant should be explored.”

He said the matter will take time to be resolved, and that casinos “are not usually without some opposition.”

“A bigger issue to Pennsylvania is how the gambling revenues are distributed to the areas that don’t have casinos. They’re supposed to be helping everybody in the state,” Pasquerilla said.

Price praised Johnstown’s location for a racino.

“We felt that (Johnstown) was the market that was going to be the most effective for the horsemen, in the central part of the state, away from other” tracks and casinos, he was quoted as saying Thursday in the Pittsburgh Post-Gazette.

Lawrence County Commissioner Dan Vogler voiced firm support for the New Castle-area site and fired a shot across Johnstown’s bow.

“If the Johnstown people want to build on the Lawrence County site, I’d be more than happy to welcome them,” the newspaper quoted him as saying.

Cambria County President Commissioner P.J. Stevens did not return a phone call for comment.

A prior effort to locate a casino in the region – at Seven Springs – flopped in 2006 when the resort was sold to the owners of the Pittsburgh Pirates. That dual ownership precluded the issuance of a gambling license.