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One of the final financing steps for the Hollywood Gaming at Mahoning Valley Race Course has been approved.
The Western Reserve Port Authority is issuing up to $60 million in revenue bonds for Penn National Gaming to use for construction of the Austintown facility. In turn, Penn National, which already bought the land, will issue a ground lease to the Port Authority, who then will lease the land back to Penn National.
The lease agreement is expected to be for 10 years.
“With the issuance of the bonds, the lease agreement will call for lease payments and those lease payments will cover the cost to repay the bonds,” said Western Reserve Port Authority Executive Director Rose Ann DeLeon.
De Leon said the rates for the bond shouldn’t be more than 4 percent. Hollywood Gaming at Mahoning Valley Race Course is expected to open in 2014 after a groundbreaking was held May 30. Penn National is investing $65 million in the project.