HARRISBURG -- Developers of a proposed Lawrence County harness racetrack didn't get the two-year extension of a racing license they'd sought, but the project -- which could lead to a new racetrack/casino west of New Castle -- isn't dead yet.
The state Harness Racing Commission, with only Chairman Roy Wilt voting, today set two new deadlines that must be met before a racetrack can be built along Route 422 near the Ohio line.
By Oct. 5, the Harness Commission said, Centaur Inc. must certify to the commission that there is at least one written bid to acquire the track project, according to procedures set forth by the federal bankruptcy court in Delaware. The project, which has had trouble getting financing, is now in bankruptcy court.
If Centaur doesn't provide such certification of at least one new bidder, its racing license -- first awarded in 2007 and given a two-year extension in August 2008 -- "shall be automatically and immediately terminated, revoked and surrendered to the commission."
But if at least one new bidder comes forward to take over Valley View Downs, things will proceed to a second deadline -- Dec. 31, when the winning competitive bidder, as approved by the bankruptcy court, must file an application with the Harness Commission for the racing license. If the second deadline is missed, Centaur's racing license also will be terminated and revoked.
A license application from a successful bidder "will be completely vetted by the commission" to determine if that group has the proper background and finances to receive the racing license, said commission lawyer Jorge Augusto.
It isn't known how long such a background check would take, so it isn't possible yet to say when a new harness track might be open for live racing, he said.
If the racing license is transferred to a new developer, it would be "site specific," meaning it could be used only at the Valley View Downs site in Lawrence County.
County Commissioner Dan Vogler was at today's meeting and said he is glad about that detail, because the county needs the 1,000 or more jobs that a racetrack and a new casino would bring.
Also at today's meeting was Daryl Price, part of a group that has expressed interest in building a track near Johnstown. He declined comment.
The most valuable element of getting a racing license is that it would enable the successful bidder to apply to the state Gaming Control Board for a gambling license to add a casino with slots and table games.
There are currently six racetrack/casinos in Pennsylvania, three with harness racing and three with thoroughbred racing. The Lawrence County project would be the seventh and final racetrack/casino.
There are three seats on the Harness Commission, but one seat is vacant and one of the two existing commissioners, Richard Welch, disqualified himself from the vote to avoid any potential conflict of interest with his employer, Wells Fargo Bank, which represents some of Centaur's creditors.
Mr. Augusto said he had researched other cases where only one board member had voted and such action is legal. State Sen. John Wozniak, D-Cambria, was critical of the commission's action. Mr. Wozniak had wanted Centaur's racing license to be revoked immediately and a new licensee sought for the project, "permitting the facility to be moved to another location in the state. "There are developers not tied to that (Lawrence County) location who are ready, willing and able to build, create jobs and speed tax relief" from gaming revenues, he said.
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