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Deal not done, but Penguins, state agree on $290 M bond issue

Gov. Ed Rendell said today the Penguins and state, county and city negotiators remain close to a deal for a new arena. But he cautioned that the team still could end up in Kansas City next season.

In the latest negotiations, Rendell said the two sides agreed to increase the arena bond issue to $290 million, the amount the Penguins believe is necessary to build a replacement for Mellon Arena, the oldest venue in the National Hockey League. Rendell said he believes an arena can be built for $270 million.

NHL Commissioner Gary Bettman has joined the negotiations as a mediator. "(Bettman) would like to see this thing brought to a head, and so would I," Rendell said.

Rendell spoke to reporters before addressing the Pittsburgh Technology Council at the Sheraton Station Square.

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