Pa. high-court ruling favors SugarHouse

Responding to calls for help from the developers of the SugarHouse casino, the Pennsylvania Supreme Court yesterday appointed a special master to mediate disputes with Philadelphia officials.

In a petition in January, the investment group had accused Mayor Nutter and his administration of holding up construction of the waterfront slots parlor.

The Supreme Court named John W. Herron, a Philadelphia Common Pleas Court judge since 1988, as special master. It also ordered the city to immediately issue a foundation permit "without condition."

Doug Oliver, a spokesman for Nutter, called the decision "disappointing."

Nutter had made a public pledge two weeks ago to speed along the city's two casino projects: SugarHouse on Delaware Avenue in Northern Liberties and Fishtown, and Foxwoods casino, proposed for the old Strawbridge & Clothier building in Center City.

"We think we've already offered to give SugarHouse what the court has ordered," Oliver said.

"Having said that, we need to move forward," he added, "and we'll continue to work closely with SugarHouse to ensure the final product is both aesthetically and environmentally pleasing."

In its petition for a special master, SugarHouse said the city's Department of Licenses and Inspections had delayed the release of a foundation permit to begin construction.

"We are delighted that the Supreme Court granted the relief we requested," said Leigh Whitaker, a SugarHouse spokeswoman. "We look forward to working cooperatively with the city."

In October, the court named a special master for Foxwoods. But since deciding to move the project off the waterfront in South Philadelphia, Foxwoods partners have gotten support rather than opposition from the Nutter administration. They have not needed to use their special master.

Nutter has made the redevelopment of the waterfront a hallmark of his administration. He is trying to reshape the seven-mile stretch of riverfront from South Philadelphia to Fishtown into more accessible and open space.

Under the state's gaming plan, both casinos were supposed to be open by now, prompting some legislators in Harrisburg to threaten to strip the city of its share of gambling-tax revenue if delays continued.

The Supreme Court said in a statement: "The Master shall have full authority to consider and resolve disputes" for any permits or actions needed to build the SugarHouse casino.

Under terms of the order, all disputes - including requests for attorneys' fees and costs - must be handled in an "expeditious manner" and the findings reported to the Supreme Court within 10 days.