Pa. high court to rule on city's say over casino permit

The Pennsylvania Supreme Court said yesterday that it would decide whether the City of Philadelphia has the power to give and take away licenses to build over state-owned riverbed lands, handing SugarHouse Casino a temporary victory over Mayor Nutter.

Nutter last month revoked a submerged-lands license that Mayor John F. Street's administration issued to SugarHouse in its final weeks. The permit was needed so SugarHouse could build its slots parlor along and over the banks of the Delaware. Nutter said he wanted to take a closer look at the last-minute deal by the Street administration, which advocated heavily for casinos.

A group of legislators had challenged that permit before the Supreme Court, saying only the state had that authority. Nutter, when he revoked the permit, asked the Supreme Court to dismiss the case as moot, since there was no longer a permit to fight over.

Yesterday, the Supreme Court refused to dismiss the case, indicating that it would decide whether the state or city controls this matter.

SugarHouse had argued that Nutter could not make the case go away by revoking a license that was the subject of litigation.

"Ultimately, the Supreme Court, not the city, will decide the issue of our submerged-lands license," SugarHouse spokeswoman Leigh Whitaker said.

SugarHouse, whose cost is now estimated at $650 million, is one of two casinos, along with Foxwoods, that were licensed in December 2005 but have not been able to clear city political and neighborhood opposition.

Nutter could not be reached immediately for comment.