SHARON — When Randy Seitz saw the price tag – $50.1 million – for the first of Pennsylvania’s 10 mini-casino licenses, he was more than surprised.
“I was shocked. We were guessing the first bid would be 10 to 15 million,” said Seitz, president and CEO of Penn-Northwest Development Corp., Mercer County’s lead economic-development agency.
Penn National Gaming, which operates the Hollywood Casino near Harrisburg, won the right to develop a casino in Yoe, York County. Penn National’s properties include Hollywood Gaming at Mahoning Valley Race Course in Austintown, Ohio.
The licenses are being auctioned off to 10 casino developers in Pennsylvania, with auctions held every two weeks. The minimum bid is $7.5 million for the license, with an additional $2.5 million for table games, said Peggy Mazyck, CEO of the Mercer County Visitors and Convention Bureau.
“We hope to have a casino here in Mercer County. The tourism board feels it would help to become an all-season destination,” she said.
The slow months for tourism in Mercer County are usually January through April, due to a lack of facilities for winter events such as skiing. But with a year-round entertainment venue such as a casino or indoor water park, the county would be able to attract visitors year-round and provide incentive for shopping in the area and overnight visits, Mazyck said.
“What we’re doing is sending letters out to the casino owners, and saying all of the things we have that would be attractive,” she said. “Like our traffic counters on I-80 and I-79, and I-376 starts here in Mercer County and goes all the way to the airport.”
Aside from the obvious games available, Mazyck said the bureau is hoping to attract not just a casino but something like an “entertainment center,” which could offer other amenities such as conference space or restaurants, further diversifying the possible jobs and visitors.
This, in turn, could create an effect that would further benefit the area in the long-term, said Sherris Moreira, executive director of the Shenango Valley Chamber of Commerce.
“Something I hear almost every single day from businesses is the struggle to fill positions,” she said. “These are the kinds of amenities that, if done properly, can draw people to live here, pay taxes, and buy homes.”
Location in terms of other casinos can also be a factor in drawing potential businesses, as Moreira said there were casinos in nearby Austintown and Cleveland, Ohio, and Erie and Pittsburgh, but nothing in the Shenango Valley area.
“We’re in a sweet spot. We’re in the middle of a lot of them but far enough away,” she said.
Part of the bidding process requires the mini-casinos be located at least 20 to 30 miles away but within 50 miles of an existing casino, Seitz said. Seitz and Mazyck said interested parties were considering the Mercer County area, but they couldn’t name specific entities.
When business representatives makes a bid at auction, they must present not only the bid but a set of coordinates including the county and municipality. If the bid is awarded, the business can build the mini casino within a 15-mile radius of the coordinates, Mazyck said.
If a casino were to come to Mercer County, Springfield Township, near the Grove City Premium Outlets, would be an optimal location. The estimated yearly traffic is around six million people.
However, Shenango Valley Mall in Hermitage, whose unused space includes the former Macy’s and Sears department stores, could be another target, Seitz said.
“I’m guessing they could use the existing space, and obviously they could make some modifications,” Seitz said.
Jim Sarvas, a commercial Realtor with Northwood Realty responsible for attracting businesses to the mall, said there is plenty of space available if a mini casino wanted to consider using the mall, and it could also boost the other businesses as well.
“The Macy’s space is almost 110,000 square feet, and Sears is about 65,000 square feet, so there’s certainly some available space out there,” Sarvas said. “I don’t know how much space they would require, but I would think there’s plenty of space at the mall.”
Along with the boosts to nearby businesses and homes, a possible casino could be used for improvements such as bridges.
Mercer County Commissioner Matthew McConnell admitted to being a little envious of the casino windfalls from facilities like the Sands Casino Resort Bethlehem at the former Bethlehem Steel site in Lehigh County. He said Lehigh County’s bridges all have ratings of 100, because of the casino money.
“The county is now using that money for economic development,” McConnell said. “It’s almost an unfair advantage.”
The next auction will be held Jan. 24, and can be watched live on the Pennsylvania Gaming Commission website.
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