Casino land development plans move forward in College Township

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STATE COLLEGE — College Township Council will be reviewing a land development plan for the proposed Nittany Casino on Sept. 16. The group will determine if the plan for any design or physical change to the existing parking lot is permitted by the township’s code.

College Township Planning Commission recommended last month that township council approve the preliminary land development plans for the proposed Category-4 mini casino at the former Macy’s location at the Nittany Mall. Nittany Casino is the official name on the development plans.

Council can approve the plan on Sept. 16. All plans are available to view on the township website.

Chad Stafford, from Penn Terra Engineering, discussed the project with the planning commission on Aug. 17.

According to meeting minutes, access was discussed and a waiver was requested for a sidewalk along College Avenue.

Instead, the developer would like to provide ADA access at the entrance across from Benner Pike and other parking lot ADA improvements.

The planning commission expressed concerns about the traffic impact at the stop lights near the mall, but Stafford explained that traffic patterns would be no different than a Saturday afternoon at the mall when Macy’s would be open for business.

Forty-four bike parking spaces would also be provided as part of the parking plan.

The lighting in the parking lot is not to be modified, according to the plans, and the signage on the building will fit within the zoning codes.

“If you walk down the Las Vegas strip and seen the sort of light shows that are on those

casinos, that is not what you will be seeing on our property. I think, that being said, what we do want to accomplish is to have a very safe, secure and well-lit parking area so that for all hours during the night, people can very easily navigate to get through,” said Eric Peason, the prospective casino’s CEO, during the meeting with planning commission.

The proposed casino would have 750 slot machines, 30 table games and sports betting, along with a restaurant and bar and a multi-outlet, quick-serve food and beverage area.

Investor and former Penn State trustee Ira Lubert had a winning bid of $10 million at a September 2020 auction for a new license for a Category-4 casino that would be located in Centre County. In January, Bally’s Corporation announced it had signed an agreement with Lubert to develop the planned $123 million mini-casino. In March, SC Gaming Op Co., LLC, the entity formed by Lubert to develop the casino, submitted an application and local impact report that identified the 94,000-square-foot anchor spot at the College Township mall as its location.

During the application to the PGCB, SC Gaming Op Co. lists Lubert — who is based in the Philadelphia area but owns a home and businesses in State College — as the company’s president and Ara Kervandjian, Robert Poole and Richard Sokolov as vice presidents. Kervandjian and Poole are prolific Centre County developers. Sokolov is vice chairman of retail real estate company Simon Property Group and a prominent Penn State benefactor.

Lubert was the lead partner in the group that developed and operated Valley Forge Casino Resort before it was acquired by Boyd Gaming Corporation in 2018.

On Aug. 16 the Pennsylvania Gaming Control Board public input hearing at the Penn Stater Hotel and Conference Center saw a crowd that showed support for the casino.

At that meeting Lubert said,” “I believe the Category-4 casino I intend to construct at the Nittany Mall will reinvigorate the property and draw many new businesses to the mall itself and the surrounding area. This, in turn, will create jobs and help drive the region’s economy forward, and with Penn State’s immense alumni base and other visitors flooding into the area throughout the year, not just football season, we will provide a new entertainment venue that everyone can enjoy.”

Pearson, who was formerly CEO at Valley Forge Casino, said the 5,000-square-foot restaurant will be sportsthemed and will have space for live entertainment, accommodating “smaller acts,” such as DJs or stand-up comics.

“It’s not a major concert hall but we want to be able to do what we can to be able to provide live entertainment,” Pearson said.

A traffic impact study found no changes would be needed to points of entry to the mall property or road infrastructure, Pearson said.

Development and construction are projected to create in the short-term 350 direct full-time equivalent jobs and 170 indirect jobs, with a net one-time economic impact of $43.6 million for College Township and $61.4 million for the county.

The casino is expected to employ 350 to 400 full-time equivalent positions, offering a “very competitive compensation and benefits package,” Pearson said.

The report projects $121.6 million in direct and indirect annual economic impact within the township economy. In Centre County, the study estimates $164 million annual economic impact, supporting 740 jobs.

Host municipalities and counties receive 2 percent of a casino’s slot machine revenue and 1 percent of table game and sports book revenues.

The impact study estimates the gaming revenues and taxes would yield $1.6 million for College Township in the first year of operation and $2 million at stabilization.

The PGCB next will hold a public meeting on a date to be determined in Harrisburg, where the developer will make a full presentation and the board will vote on whether to grant the license for the casino.

Once license and permit approvals are granted, construction of the casino is expected to take about one year.