Staff writer

bmiller@observer-reporter.com

With a possible court case gathering steam among boroughs and townships over Washington County's local share of slots revenue from The Meadows Racetrack & Casino, officials to the north can sit back and say, "Been there, done that."

A lawsuit over slots revenue is pending in Erie County Court, spearheaded by the host community, Summit Township, and four contiguous communities.

Summit Township and its neighbors are suing over the use of what are known as "restricted" funds, half of the $11 million local share of slots revenue from Presque Isle Downs, said Bob Spaulding, Erie County director of economic development.

The Summit Township Industrial and Economic Development Authority filed suit late last year, objecting to the county's interpretation of the law that legalized slot-machine gambling in Pennsylvania.

The authority claims restricted funds must be used for projects directly related to the racetrack and casino, according to a story last month in the Erie Times-News, and is seeking $13.8 million in reimbursements for infrastructure.

Spaulding said the county prefers to see $25.7 million in gaming revenues put toward a 1,920-foot extension of the runway at Erie International Airport, a project that totals $80.5 million.

A judge has yet to decide the case.

Not disputed is the use of the other half of the money, known as "unrestricted" funds.

Erie's regional assets are in a dedicated category, including its zoo, arts council, art museum, Erie Philharmonic, Erie Playhouse and the Experience with Erie Children's Museum. Those organizations and other community assets and special events, such as parades and festivals, will get $2.6 million of the unrestricted money, Spaulding said.

Other unrestricted money goes through the seven-member county council. A transit initiative and creation of a community college are high on the priority list.

Spaulding said Erie County spent about two years studying how to use slots revenue from its brand-new track and casino, which opened just over a year ago.

During the process, many of the 38 municipalities in Erie County came to county council and asked for revenue-sharing from the slots money.

"It sounds like a lot of money," Spaulding said. " By the time you parcel it out like that, some of these municipalities get hardly anything at all. Or people say, 'Use it for property tax relief.' That was never intended for the local share."

South Strabane Township this week decided to join in a lawsuit on Washington County's use of slots revenue. Leading the effort are Centerville Borough and East Bethlehem Township. Although they applied for it, the three received no recommendation for slots money from the Washington County Economic Development Roundtable or the Washington County commissioners, who are forwarding 26 proposals totaling just over $8 million to the state Department of Community and Economic and Development.

DCED is expected to announce today the grant recipients of slots revenue from Pocono Downs' Mohegan Sun Casino, the first one opened in the state under legalized slot-machine gambling in 2004.

When entities applied for the revenue from gaming dollars, they didn't go through the Luzerne County seat in Wilkes-Barre.

"We have no control over that money," said Michele Sparich, Luzerne County grants writer. "It was all submitted directly to DCED. The county has no decision-making power, none whatsoever."

Neither did the county submit a proposal. Sparich said the one county-related project, an automated records management system, was submitted through one of the cities in Luzerne County.

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