Philadelphia’s battle for the remaining casino license has
developed some interesting subplots.
There are five proposals vying for one license.
The Pennsylvania Gaming Control Board is in town for three
days of “suitability” hearings, listening to details about each proposal and
asking tough questions.
All five proposals have their merits. All five are from
teams that have had great success — if not in casinos, in retail development,
urban redevelopment and so on.
One of the most interesting battles emerging is that of the
two Center City proposals. They’re from real estate developers that are native
to the area, in their 50s and have been on the scene for a long time: Bart
Blatstein, whose $700 million The Provence would incorporate the old
Philadelphia Inquirer building (400 N. Broad St.), and Ken Goldenberg, whose
$500 million Market8 (800 Market St.) concept would at long last fill a gap on the
Market East corridor.
Since it’s Super Bowl week, it’s fair to compare them to the
Seahawks-49ers rivalry. Each knows the others’ strengths and weaknesses. Both
drafted top teams with good bench strength. Neither will back down. One could
make it to the Super Bowl.
Blatstein has transformed Northern Liberties with the
Piazza, sparking $1 billion in development in that neighborhood. He has
developed movie theaters, apartment buildings, retail frontage. He’s a
Northeast Philly native and has been in the development business 36 years.
Goldenberg, who grew up in the Cheltenham and Abington area,
redeveloped the Art Deco-era Ayer apartment tower, the Metroplex retail center
in Plymouth Meeting, a student housing complex near Temple University. He’s
also gone into places other developers fear, such as a shopping center in the
city’s Parkside neighborhood.
Each developed a strong team. Blatstein brought on Stephen
Mullin, president of Econsult and a former city commerce director;
restaurateur-and-chef Tom Collichio, host of “Top Chef;” Paul Steelman, who has
designed casinos around the world; Virginia McDowell, a Temple grad who is now
CEO of Isle of Capri Casinos (which would run the casino); Michael Pollock,
longtime casino analyst and principal at Spectrum Gaming; Bill Sasso, chairman
of the law firm Stradley Ronon; and George Burrell, former city councilman,
adviser to Mayor John F. Street and, back in 1969, a defensive back for the
Denver Broncos.
Goldenberg brought on Mitchell Etess and Mohegan Sun to run
the casino; Jay Shah and Hersha Hospitality (owner of the Rittenhouse Hotel and
about 60 others around the nation) to operate the 168-room hotel; Peter Tyson,
a well-respected hotel industry analyst; Willie Johnson, who built the
outsourcing firm PRWT; Campus Apartments CEO David Adelman; retail-and-real
estate developer Ira Lubert; and builder Dan Keating, who has built five
casinos (and was formerly aligned with Steve Wynn).
Neither Blatstein nor Goldenberg are gamblers, at least in
casinos. They are developers. Casinos are a way to build larger projects that
would include retail, hotels, restaurants, night clubs and so on.
Alan Greenberger, the city’s commerce director, came out
last year and said, of the five proposals, the city would like to see one of
the Center City proposals win.
Both Blatstein and Goldenberg know that nothing gets done in
Philadelphia unless you go into the neighborhoods and make your case. It’s one
thing to make a case in front of regulators. It’s another to go into Chinatown
or any of the other neighborhood associations and tell them why they should
welcome a casino. Each claim to have made dozens of visits to neighborhood
groups.
In the hearings this week, Blatstein peppered video and
expert testimony with folksy testimony, letting regulators know he was a
longtime, well-established developer here. He mentioned more than once that he
has 36 years experience.
In his testimony, Goldenberg was energetic and also called
on his experts. But he also brought some show biz with a professionally made
video and a 3D architectural model of Market8.
Yet there are five plans in the running, not two.
And both Blatstein and Goldenberg will face formidable
competition.
Penn National Gaming (Hollywood Casino) and PHL Local Gaming
(Casino Revolution) have solid proposals for South Philadelphia casinos.
The most formidable competition from South Philadelphia may
come from Philly Live!, a joint venture from the owners of the mid-Atlantic’s
two largest casinos, Cordish Cos.’ Maryland Live! and Greenwood’s Parx Casino.
They’ve been relatively quiet so far.
But to go back to the Super Bowl analogy, the owners of
Maryland Live! are a little like Tom Brady and Bill Belichick rolled in one:
They’re cool, they’re tough, they’ll play anyone on any field and they’ll go
down swinging. And, if you’re rooting for a Philly team, you won’t like them
winning.
Regulators will hear testimony from the Philly Live!
officials on Thursday morning.
A decision on who gets the casino license likely won’t come
before April at the earliest.
Win or lose, Blatstein and Goldenberg will be here when it’s
over.
Source: Philadelphia
Business Journal
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