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Barden asks court to expedite ruling on casino parking garage
Wednesday, May 14, 2008

Don Barden is worried that ongoing litigation over the size of the parking garage being built as part of his North Shore casino could impact the financing for the slots parlor.

In legal papers filed Monday, lawyers for Mr. Barden and his company, PITG Gaming LLC, asked the state Supreme Court to rule quickly on an appeal filed by the Riverlife Task Force challenging the size of the 3,800-space garage, even if it means skipping the formal opinion for the time being.

Lawyers tied the request to Mr. Barden's efforts to complete $800 million in permanent financing for the casino by next Monday. They argued in court papers that a ruling one way or the other "will allow PITG and its lenders to assess the terms of the loans knowing whether an appeal will remain pending or will be terminated."

In March, Mr. Barden and the city asked the state's high court to throw out Riverlife's Feb. 12 appeal, claiming the litigation was without merit and that the agency lacked standing to pursue a claim.

Riverlife is challenging city planning commission approval of the casino and the garage behind it, listing a host of procedural and design-related issues. It and other opponents fear that the 10-level garage has the potential to overwhelm the casino itself and mar views of the skyline from Mount Washington, the South Side and other locations.

Clifford Levine, Riverlife attorney, said his client had no objection to the request for a quick ruling.

The bid comes as the state Gaming Control Board convenes a public hearing today to discuss Mr. Barden's proposed financing and requests to delay completion of a casino ballroom and outdoor amphitheater to the second and third years of operation, respectively. There's also a request to spread out a $3 million commitment to the Hill District from three years to five.

Mr. Barden is hoping to close by Monday on $650 million in loans from international lender Credit Suisse and another $150 million from a syndicate of banks to finance the $770 million project, including construction, contingencies, fees, and insurance.

To help bolster the financing, Mr. Barden has pledged to sell his Fitzgeralds Casino in downtown Las Vegas and to set aside $35 million to make debt service payments in the first year of the North Shore slots parlor's operation if the money isn't required for the construction itself.

He needs to close on the financing quickly so that he can pay off a $200 million bridge loan he obtained to start construction of the casino, which is scheduled to open next May.



First published on May 14, 2008 at 12:00 am
Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.
Read the PG's Casino Journal by Bill Toland
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