The additional slots money that could be brought to the developers and Bethlehem would ''really help make something that may be uneconomical, economical,'' Perrucci said. ''It may allow something that you couldn't ordinarily do in a lifetime make economic sense. So there's this window of opportunity. I mean, whether we get that or not, we're excited about this site.''
Although they say that they entered the project without any thought of slots, the developers say their new concept of gambling with other mixed uses has proved to be successful.
''It's not a coincidence that the most successful casinos in Vegas are associated with big retail and family-style entertainment,'' Kuhn said.
Additionally, slots may take profit-making pressures off a proposed Smithsonian museum of industrial heritage, Gural said. The museum ''could be a do-good thing to honor the people who worked there when America was an industrial country,'' Gural said.
The Bethlehem Works site might not be the first shot at gambling for one of the developers. Gural is hoping to bring slots to a closed horse racing track just north of the Pennsylvania border in Tioga County, New York. A breeder and buyer of standardbred horses, Gural, along with a partner, John Simmonds, have applied for licenses to race horses and operate video slot machines at Tioga Park. The track hasn't hosted a race in 25 years.
Simmonds said plans eventually call for a hotel and estimated the partners will spend ''well north of $10 million'' by the time the project is done.
Doug Barton, director of Tioga County Department of Economic Development and Planning, said a horse racing-only facility would have welcome, but limited, economic benefit. Add slots, he said, and the picture changes.
''The combination of the two,'' Barton said, ''makes it a successful proposition.''
Political connections, donations
Slots licenses are a prized governmental commodity, and the developers over the years have not been bashful about getting local and national politicians' attention. As it is, Perrucci, a former Warren County Democratic Party chairman, was a law partner with former New Jersey Gov. Jim Florio. Their firm in 1999 merged with Fischbein's — another politically tied firm that counts as members Herman Badillo, a former congressman, deputy mayor and adviser to former New York City Mayor Rudy Giuliani; and Liberal Party head Raymond Harding.
The five developers have contributed tens of thousands of dollars to state and national political figures and causes, usually — but not always — to Democrats. Perrucci, the former Democratic county chairman, wrote a $500 check to Pennsylvania Republican U.S. Sen. Rick Santorum in June, for instance. On the other hand, about a year ago, Perrucci gave $10,000 to the Pennsylvania state Democratic Party. Another $5,000 came from the law firm and Florio sent a third check of $1,000, all on the same day.
Campaign records show Perrucci gave Gov. Ed Rendell $1,000 when he ran for governor in 2002. The firm also gave $15,000 to Rendell.
Perrucci also is a Rooney campaign donor, as well as a former business partner of his. Tax returns released by Rooney show that he netted about $7,000 over the last two years for political consulting services to Perrucci, an arrangement that Rooney said was approved in advance by the state Ethics Commission. Rooney said once he learned that Perrucci's group would make an effort to buy the Bethlehem Works property, he severed his business ties with Perrucci.
''I want to be able to advocate for reputable people with no cloud hanging over my head,'' said Rooney, who also has received campaign donations from Perrucci.
''They understand how to leverage and get in front of the governor,'' said state Sen. Lisa Boscola, D-Northampton. Like Rooney, Boscola supported another developer initially, but since has been converted. ''Every time I talk with Mr. Perrucci, we're always talking politics,'' she said. ''I trust him.''
Boscola said Perrucci already has spoken with Rendell during a recent visit to the Valley and in Harrisburg. At the latter meeting, she said, ''the discussion revolved around a slot parlor.''
Heritage preservation possible
Whether they secure a license for slots, the developers said they intend to press forward with development plans. Perrucci said they are interviewing some of the nation's top architectural firms and may hold a ''beauty contest'' to see who comes up with the best development ideas that also retain as much industrial heritage as possible.
The developers say they won't make promises about what they can retain of the plant, acknowledging the legacy of promises rooted in the property from Bethlehem Steel days on through more recent, largely unfulfilled, redevelopment plans. Since Bethlehem Steel's decline, a few positive steps have become a reality, including the Flyers' Skate Zone ice rink and the landing of OraSure Technologies, a medical diagnostics firm. More numerous were the flops, including grand proposals calling for a 12-screen movie theater, a blues club, and an entertainment center called ''The Fundry.''
Bethlehem Mayor John Callahan said the developers understand the importance of retaining the industrial nature of the land.
''I made it very clear to them early on in our discussions that it was my wish to save the blast furnaces and that it was non-negotiable,'' Callahan said. ''They were not opposed'' to the concept, he said.
The chief executive officer of the proposed National Museum of Industrial History, Stephen Donches, also has been favorably impressed by the new owners.
''Their comments about interest in preservation of the project have been very supportive,'' Donches said. ''And have been very supportive of the National Museum of Industrial History.''
Donches said the group needs time to complete its assessment of the property before anyone can judge if those good intentions come to pass.
Another property owned by an investment group led by Gural, Gosin and Kuhn suggests that preservationists have reason to hope.
It is New York's famed Flatiron Building, regarded as one of the city's most recognizable and beloved structures. Built in 1902 by famed architect Daniel Burnham, the Beaux Arts-style building was under consideration to be converted into apartments, Gural said. But after rejecting the proposal, the Flatiron has undergone considerable renovation with attention to historical detail, said Peter Garabedian, chief operating officer of Holtzbrinck Publishers, which leases most of the office space in the building.
Garabedian said the owners are putting millions of dollars in renovations into the building, including refinishing the exterior stonework and adding new windows and bathrooms. And since the building is a historic structure, even details such as the windows — down to the color of the paint — have to pass muster with a city historical review commission.
Holtzbrinck recently signed a 15-year lease for the building. That, Garabedian said, reflects on the effort and expense that the owners put into the Flatiron.
Speaking of Gural, with whom he negotiated the lease, Garabedian said, ''I can't emphasize enough how thrilling he finds it to own a landmark. He wants it to reflect on him.''
Working with partners
The steel property owners say the industrial nature of the tract makes preserving as much as they can a no-brainer.
''The historical context makes it so spectacular,'' said Fischbein.
Fischbein said the group also was attracted to the ''unique'' idea of being able to redevelop a large site in the middle of an urban downtown. They are eager to find a partner to build a lifestyle center, a development of upscale shops and restaurants. Other developers have their eyes on sites in the Lehigh Valley for lifestyle centers, giving the BethWorks group a sense of urgency.
''Part of the issue that we will have is timing,'' Gosin said. ''We've got to do this quickly.''
The grind of Harrisburg political machinery may not allow BethWorks Now to reach all of its goals quickly, however. The state already is behind its own timeline for appointing a full Gaming Board. Eventually, the board will have to find office space, hire staff and develop regulations — which has to happen soon if it is to have any chance of meeting Rendell's timetable of issuing the first slots license by December 2005.
As with other projects such as the DUMBO venture, the developers would not necessarily be the ones to do the work.
Jed Walentas, son of the DUMBO redeveloper, said his father was the visionary behind DUMBO, but Gural in particular helped keep things together, especially during the New York real estate market's lean years. ''Jeff gave us some financial and political stability that we didn't have, especially when times were bad,'' Walentas said.
Today, he said, nearly 3 million square feet of dying factory space has been converted into highly successful office, retail and housing space in DUMBO.
Walentas, who was unfamiliar with the Bethlehem Works project, warned that success in one real estate market is not a predictor of success in another. But, he added, the Newmark principals are good at what they do and would likely bring in a team with well-rounded expertise.
''We're very happy to joint-venture with people,'' Gosin said, adding that they would likely hire other developers to oversee construction of the lifestyle center and gaming facilities. The redevelopment of the Steel General Office building would likely stay in their hands, Gosin said, because that kind of work is ''really in our sweet spot.''
As with DUMBO, Gosin said the developers are in Bethlehem for the long haul.
''We're long-term investors,'' he said. ''We're not short-term guys. We don't buy and then flip.''
Added Kuhn: ''We put our money up. … We closed with cash on the property, and nobody has promised us a thing yet.''
timothy.darragh@mcall.com
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