Temporary Slot Machine Casino

Isle of Capri Casinos, Inc. is in talks with Pittsburgh’s Urban Redevelopment Authority to possibly use the parking a lot above Mellon Arena as a temporary slot machine casino. They would pay the city $1.3 million a year to use the space if they win the Pittsburgh slot machine license. The URA Board is expected to vote on the issue tomorrow, and if approved the company would be able to use the area known as the Melody Tent site, for the slot machine casino for up to two years.

If the slot machine casino ends up using the spot for the full two years it would be approved for, the city would end up gaining $2.6 million in rent. They would also receive reimbursement for any parking revenue that they would lose during the construction of the temporary slot machine casino and the demolition of it as well. Once the permanent slot machine facility is completed, the lot would revert back to the URA. Isle of Capri would end up paying an additional $280,000 a year in lost revenue to the city for the use of that parking lot.

All of these plans and payments are of course, based on the assumption that the Isle of Capri wins the slot machine license. They are vying for the license against Forest City Enterprises and PITG Gaming LLC.

The general council for the URA said that the rental rate was agreed to after they had many consultations with appraisers, and months of negotiation with the Isle of Capri. The company plans on having 1,500 slot machines at the temporary facility. The facility would get the slot machine revenue flowing into the state coffers while they are completing the permanent casino that would be built along Fifth Avenue. The site was chosen to its proximity to a proposed new arena that would be in Pittsburgh as well.

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