BET founder, locals join Pinnacle pitch - but too late

HARRISBURG -- Pinnacle Entertainment Inc., the only Philadelphia casino applicant that didn't partner with local investors, tried to pull a last-minute maneuver yesterday to bolster its credibility on hometown and diversity issues.

Robert L. Johnson, the founder of Black Entertainment Television and owner of the NBA's Charlotte Bobcats, signed on Tuesday night as an investor in Pinnacle's proposed casino.

But when Johnson prepared to testify before the state Gaming Control Board yesterday, Chairman Tad Decker was reminded by his staff that while Johnson and others can invest in Pinnacle, the board could not consider their role in the project when awarding licenses on Dec. 20 because the board had set Oct. 13 as the cut-off date for gaming applicants to add investors.

"We're not considering Mr. John-son as an applicant," Decker announced.

Johnson pressed on anyway, telling the board that he has been speaking with former basketball great Michael Jordan and five "household names" in Philadelphia about joining him in investing $35 million to take a one-third stake in the Pinnacle project, which would be built on the Delaware riverfront in Fishtown.

Johnson's testimony came as the gaming board concluded "suitability hearings" for five applicants seeking two licenses in the city.

Johnson later identified the five potential local investors as Herman "Pete" Matthews, leader of the American Federation of State, County and Municipal Employees District Council 33; Ahmeenah Young, an executive at the Pennsylvania Convention Center; Dr. Walter Lomax Jr., chairman of a health-care firm; Kobie West, president of West Insurance Co., and Robert Archie, Jr., a partner in the Duane Morris law firm.

Matthews confirmed he had submitted an application to the Gaming Control Board to consider his suitability for the project.

"I think it's a good opportunity to help the growth of the city in a number of ways," Matthews said. "That's all I want to say right now."

West also confirmed that he was joining Johnson's investment, saying he leapt at the chance to work with the well-known businessman. But West said a confidentiality agreement signed by the investors prevented him from describing the deal in more detail.

Johnson told the board about his experience with gaming licenses in the Caribbean and said he was an appropriate investor in a Philadelphia casino because "for a large part, a lot of the customers will be African-American."

Johnson also said he was committed to diversity in the project.

"That's my reason to be here, along with seeing a unique opportunity," Johnson explained.

Information about Johnson's business history made up the bulk of the "diversity statement" Pinnacle distributed to the board yesterday.

The company faced criticism in 2000 and 2001 in Indiana for failing to meet goals set by that state's gaming law for the participation by minority-owned vendors in a casino Pinnacle runs there.

In part of a video shown to the board yesterday, local officials in St. Louis praised the company for diversity in a casino Pinnacle runs there.

Barbara Grant, a former communications director for Mayor Street, who now has a contract to do public relations for Pinnacle in Philadelphia, told the board that company representatives have been meeting with community groups and civic organizations -- including the NAACP, the Urban League and the African American Chamber of Commerce -- to hear their concerns about the proposed casino.

Grant testified that the company's application "reflects" the need for diversity, adding that Pinnacle, "has a passion and concern for people in their host communities."