Don Barden's Majestic Star Casino still is a go, but it's getting harder to feel confident in this project and the process that got us here.
The Detroit developer has spent the past three months trying to work out the $780 million in financing for the casino, a time frame that went longer than his contractors could absorb. So work has been suspended indefinitely, which makes it difficult to understand how Mr. Barden's spokesman can offer assurances that the delay should not affect the timetable that calls for opening the slots casino next May.
The Pennsylvania Gaming Control Board awarded Mr. Barden the license for Pittsburgh's only casino in December 2006 after what it called "extensive reviews and investigations." Among the many factors that influenced the board's decision was the so-called firm commitment of the necessary financing, estimated at $450 million.
Mr. Barden obtained a $200 million bridge loan that allowed him to break ground last year, clear the site and keep contractors working to the point that foundations have been poured and a skeleton of girders pokes up.
Through it all, as market conditions deteriorated, the amount of borrowing sought by Mr. Barden escalated. Standard & Poor's has assigned a low credit rating to the project because of concerns about the heavy borrowing.
On Monday, he could not deliver the $10 million owed to a contractor for work already completed. The good news was that he obtained the final $120 million he needs from a Chicago billionaire, but he still must close on $600 million arranged through international lender Credit Suisse and the entire package then must be approved by the gaming board.
Which brings us to whether the gaming board did its job in the first place. Mr. Barden's failure to nail down financing and the halt in construction suggests he may not have been the best choice for a license. If this project is stillborn, Pittsburgh will be the loser.