Insider Sheds Light On Hill Demands

Solution May Be Near

Confidential Source


A source close to the PG has shed new light on the surprising events of last week whereby a group of angry Hill District representatives demanded a multi-million dollar payoff from the city as part of the new Pens arena development. Mayor Ravenstahl, County Executive Onorato and Councilwoman Payne appeared to be surprised by the hefty demands, but our source tells us they were in fact well-prepared for the ambush.

The shake-down occurred when the parties met in secret last Thursday. The Hill’s increased hostility, however, had already become apparent to city leaders during a round of secret meetings prior to last Thursday’s. Due to schedule conflicts, Mayor Ravenstahl was not able to attend the first round of meetings and sent Yarone Zober to the negotiations as his representative. It was Yarone who kept the mayor fully apprised of the escalating tensions.

Proceeding with the mayor’s plan to keep the city moving forward, Yarone asked the county if they could come up with any extra cash. Having schedule conflicts of his own, County Executive Onorato sent former City Public Safety Director Nominee Denny Regan to the negotiations as his representative. It was at first unclear what official capacity a former city official might hold in county matters, but no one in attendance thought to ask. This was a fortuitous oversight as Denny confidently replied he could certainly find other parties to shake-down, but worried he could only come up with part of the needed cash even considering his extensive contacts. Ron Burkle and Don Barden, both in attendance and both representing themselves, quickly added no further concessions would be forthcoming from their side of the table as both were financially stretched to their limits.

Our source tells us a last-resort call was then placed to the governor who in turn felt it might be appropriate to try to squeeze some money from the slots distributor “middle men”. “They’re getting a hefty chunk for just sitting on their asses”, Rendell was overheard to have said. The room’s high hopes were dashed when the governor was reminded that “middle men” licenses were rendered worthless when the State Legislature eliminated the requirement forcing casinos to buy their machines from licensees. In fact, one of the unfortunate license holders, former City Councilman Sala Udin, was rumored to now be part of the “unspecified group” who would be controlling the Hill payoff monies. The rumor further detailed Udin’s optimism of having a new source of skimming revenue to replace that which he lost when the Legislature “went off on their reform thing”.

Just when negotiations appeared to have reached an impasse, Governor Rendell came through for the group. It is thought he agreed to provide the final Hill payoff piece by dipping into gaming revenues targeted for property tax relief, pushing meaningful rebates into the “outer years”.

Most all parties were reported to be elated with the deal that was hammered out. Government officials were relieved that arena development could now begin in earnest and Mayor Ravenstahl was especially pleased that all was accomplished without lining the pockets of any trial attorneys and with “no extra cost to the taxpayer whatsoever”.

Only Councilwoman Tonya Payne remained skeptical to the very end. “This is all very confusing”, she said. “But it still seems to me what we have here is just a plain ole ponzi scheme. That’s all it is. And I’m not too happy about one bit of it.”

Hill District Shake-Down Surprises Local Officials

Mayor Left Nearly Speechless

Will Other Communities Follow Suit?

Still beleaguered from the Penguins arena shake-down ordeal, city leaders were quite dismayed to find it happening once again. This time, however, it was Hill District leaders with their own list of demands wanting a piece of the savory pie that had just been handed over to the Pens.

Their list of demands, enumerated in a "term sheet", was quite extensive: An upfront "payment" of $10 million, yearly payments (amounts yet to be specified) for the next 30 years, and an in-perpetuity cut of future revenues from the new arena and surrounding development. The neighborhood would be given, free-and-clear, any city-owned or county-owned land it wanted to develop. And thirty percent of all arena jobs, from unskilled to executive level, would go to "minorities of color". It is not yet clear whether Asians, Middle Easterners or Native Americans could qualify as "minorities of color" under the job quota proviso or whether unemployed Caucasians living in the Hill District would be eligible for the new jobs. Also unclear is whether or not the new hiring scheme has been discussed with local area unions.

Mayor Ravenstahl, County Exectutive Onorato and Councilwoman Payne were clearly put off by the ambush. Mr. Onorato had no comment but Ms. Payne, the most obviously incensed of the group, complained that the Hill residents seem to feel they are "entitled". "You can't walk in to talks that way", she chided. After regaining his composure, Mr. Ravenstahl was quick to interject that he was very much looking forward to moving forward with a fresh and forward-thinking approach to this matter. At least that's what he intended.

The unspoken worry on Grant Street, however, is whether or not other neighborhoods will follow suit. The Hill has the biggest burden to carry because the massive arena development is being plopped squarely in their midst. In that regard it seems only fair that the Hill appropriate the largest portion of the shake-down funds for themselves. But since there is $290 million of public money being funneled into the arena, will other segments of the "public" think they are entitled to a cut as well? Will Southsiders, long denied their fair share of city parking spaces, now demand new garages be built along Carson in a 10-to-1, bar-to-garage ratio? Will every neighborhood with pot holes comprising more than 40% of their street surface area be standing in line with their hand held out?

But this is only the tip of the iceberg. The precedent being set here has far-reaching implications for a city that has nothing, needs everything and has no money to pay for anything. Will this tactic be mimicked by others desperate to have their needs met? Will communities hosting the proposed Mon-Fayette Expressway, for instance, now demand a cut of all business and new development revenues spurred by the new highway?

A lot of questions and very few answers to a situation that seems to change by the hour. But our city leaders have proven themselves to be a formidable negotiating team. We can fully expect them to bargain as tough with the Hill as they did with the Pens. What more can we ask?