November 26, 2008

Penguins get side of free land with their arena

When the Pittsburgh Penguins' arena deal was approved, I reported that in addition to about $100 million worth of state subsidies, the team would get development rights to the site of their current home, Mellon Arena. It now turns out that wasn't quite right: What the Pens got are actually development credits, which can be cashed in for land either at the old arena site or at another site adjacent to the new arena. The team is currently looking to buy an acre of land next to its new arena for a hotel - once it's been appraised, sports authority officials told the Pittsburgh Post-Gazette, the Pens will "buy" it out of their $15 million in Monopoly money they got as part of the arena deal.

As I told the Post-Gazette, "Free land is as good as free money," so this definitely counts as an additional subsidy, on top of all the other ones popping up since the arena deal was first announced almost two years ago. For a conclusive total, we'll just have to wait until Judith Grant Long finishes her book.