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PITTSBURGH-If Forest City Enterprises and Harrah's Entertainment can secure one of the casino licenses from the state gaming commission, the publicly held companies say they plan to invest $1 billion to transform Station Square development here. The project would include the addition of a 400,000-sf casino managed by Harrah's Entertainment.
In addition to the $512-milllion casino investment, the expansion of Station Square would include 1,250 residential condominiums, a 200-room addition to the Sheraton Hotel and street-level restaurants and retail. The long-term plan also includes an eventual expansion of the casino and a new 300- to 500-room hotel tower.
Forest City Enterprises and Harrah's Entertainment acquired the Station Square property from the Pittsburgh History & Landmarks Foundation in 2003. Attracting 2.5 million visitors annually, Station Square is already the largest tourist attraction in Western Pennsylvania, according to Foundation president Art Ziegler. Existing attractions include a concert amphitheater, retail shops, restaurants, a marina, boat tours and a water feature.
A study conducted by Christiansen Capital Advisors and paid for by Forest City projects the creation of 10,377 jobs with total wages of $321.5 million in the first year of operations of the expanded Station Square. The study also projects gaming tax revenues of $180.7 million to Pennsylvania and $10.6 million each for Allegheny County and the City of Pittsburgh in the first year of operations. About $155 million of the property's revenues are projected to come from customers coming from outside Allegheny County.
"With more than $1 billion of proposed investment, Forest City and Harrah's have the strongest and most comprehensive development plan and the potential for the most tax revenues," says Forest City director Brian Ratner.
As an additional carrot to the gaming commission, Forest City and Harrah's have pledged to make a significant philanthropic commitment to the city should they secure the license. The commitments include the establishment of a $25-million endowment for the Pittsburgh History and Landmarks Foundation, and the donation of at least $1 million per year for through a foundation headed by Franco Harris of Pittsburgh Steelers fame. Half of the funds would be used in neighborhoods with a 60% or higher minority population.
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