The bankrupt developer of a proposed Lawrence County racetrack and casino wants out of the stalled project, casting doubt over whether Valley View Downs will be built.
Indianapolis-based Centaur Inc., which holds Pennsylvania's last harness-racing license, hasn't emerged from bankruptcy as fast as planned, according to a company statement Tuesday. Centaur asked a bankruptcy judge to let it sell the Valley View Downs project, calling that "the best and fastest way" to get the $455 million facility built, said Kurt Wilson, Centaur's chief financial officer.
The project's value is tied to its harness racing license, and that license is set to expire Sept. 6. Without it, Valley View Downs no longer would be in line for the state's last racetrack-casino license -- which a separate state agency grants.
"There's not enough time to sell it before Sept. 6," said Gregg Kline, a gambling industry analyst for BNP Paribas.
That presents a dilemma for Harness Racing Commission members. They would have to approve the extension without knowing who might take over the project. If they reject Centaur's request, they'll plunge the license into a legal black hole.
"The (harness racing) act didn't provide for this possibility -- that a licensee would not be able to build a track," commission spokesman Justin Fleming said.
It's unclear whether the commission can take back the license and award it to someone else, even if it expires.
"The orderly transfer of ownership is in the best interest of those seeking to launch Valley View Downs in Lawrence County at the earliest possible date," Centaur spokeswoman Susan Kilkenny said. "The benefits of doing so would be widespread, in terms of rejuvenating the area's economy and bolstering the state's horse racing and agribusiness industries."
The real prize is the casino license. The Gaming Control Board refused to grant Centaur the license -- even though no one else could qualify for it -- before a July 2008 deadline. The board said it needed more time to investigate the project's financial plan. The missed deadline allowed the project's investors to pull money at the height of the global financial crisis.
Centaur hasn't been able to put the financing back together, and the project has floundered.
On the bright side, investors have begun putting money behind gambling ventures, Kline said.
"Pennsylvania is a really good marketplace," Kline said. "People will look at this."
Dan Vogler is counting on that.
The Lawrence County commissioner spent the past three years traveling the state to attend Harness Racing Commission and Gaming Control Board meetings. He watched projects bring construction jobs, and then casino staffing jobs, and millions of dollars in taxes to the host municipalities.
All the while, Valley View Downs -- which could become the county's second-largest employer with 1,000 full- and part-time jobs -- sputtered.
"I sit there with crossed fingers and patience and faith that our day will come," Vogler said. "A lot of folks have exercised a great deal of patience."
"We are extremely grateful for the strong local support from county, township and state officials," Kilkenny said.
Centaur declared bankruptcy in October 2009. It asked the bankruptcy judge to schedule a hearing on the auction request for Aug. 25. The Harness Racing Commission is set to meet the next day, its last meeting scheduled before Centaur's license expires.
