The prize could be more than $35 million in revenues over the next four years and initial creation of 140 to 150 high-paying professional jobs.
A Uniontown company is placing its bet on becoming part of the gaming industry in Pennsylvania.
The prize could be more than $35 million in revenues over the next four years and initial creation of 140 to 150 high-paying professional jobs.
NuRelm Inc., a Uniontown-based Internet-technology firm, is partnering with Swedish EssNet Interactive AB to win the contract to provide computer servers and software powering Pennsylvania's slot machines. Pennsylvania's legislature in July approved up to 14 slots casinos that will house approximately 61,000 machines. The ultimate goal is to use some of the gambling proceeds to reduce property taxes in the state.
While most of the responsibilities and oversight for such gaming rests with a state Gaming Control Board, the Pennsylvania Department of Revenue has several responsibilities in the implementation and control of slots gaming. The department must implement and administratively manage a Central Control System (CCS) that controls and links all operational slot machines to one central computer system.
EssNet is bidding on that CCS contract.
Steve Kniley, Pennsylvania Department of Revenue press secretary, said the agency hopes to have a bidder selected soon for CCS. 'We have an internal committee that has been working on this for some time. I can't say exactly when we will decide, but we hope to do it before the end of the month.'
NuRelm recently joined in a consortium with EssNet Interactive AB, Mona McGraw, NuRelm president and chief operations officer, said.
'We think we have a pretty good shot at this. EssNet looked for a local company to partner with that has the skills they need. They were looking for a woman and minority-owned business operated in a financially depressed area that can manage the servers and software,' she said.
If EssNet wins the contract, it could locate its North American headquarters in Fayette County, Kip Peterson of Transnational Market Development Inc. of Roswell, Ga., said.
'EssNet is looking at doing things a bit different. We wanted to find a local organization that could actually take on the technology transfer and at the same time do some economic development in depressed areas,' Peterson said. 'One of the criteria was the federal 8A status of disadvantaged business and we found NuRelm, which met all the criteria,'' he added.
Peterson explained that NuRelm would actually operate the CCS. 'We will install it in their offices. We will also have an off-premise backup site in the general region, which we must do. We will have servers at each one of the slot machine sites. We will do a technology transfer and they will do the operations,' he said.
'What this is going to do is bring some very high-tech degreed people into the market. These will be good salaried jobs. We are hoping that if this works we may use it as a jump-off point to establish some areas we want to get into. We want to get into the North American market. EssNet is the third largest lottery vendor in the world. But it has not been in the North American market by design,' Peterson said.
'This would be an amazing win for Fayette County and all of southwestern Pennsylvania. The whole state could benefit from an international firm moving in and setting up shop in the county with the second-highest unemployment rate in the state,' McGraw said.
'Of course, I'm excited about what it would mean for NuRelm, but I'm equally excited about what it would mean to Fayette County,' McGraw said.
'It would halt the flow of dollars out of the state if some other company would get this contract,' Sam Shaaban, NuRelm chief executive officer, said.
'Whether or not EssNet Interactive wins the state bid, it's an honor to have been selected as their partner in this initiative. I wish we had more companies like EssNet Interactive that are looking for positive ways to impact our state's local economy,' Shaaban added.
NuRelm is also preparing to close on buying a former warehouse in downtown to house its business and provide lease space for other enterprises.
That property, at 40 Iowa St., Uniontown, is a 12,480-square-foot, three story brick building that currently houses some of James Vending Co.'s equipment. Built in 1930, it was first used as Metzler's furniture store warehouse.
'Mona and I are buying it and will lease it to NuRelm,' Sam Shaaban, NuRelm chief executive officer and McGraw's husband, said.
They are paying $140,000 for the building and plan to initially spend about $100,000 to remodel the third floor where they plan to put NuRelm's offices. Currently housed in leased space on the fourth floor of the National City Bank Building, Shaaban and McGraw said it seemed to be a good time to look for their own site.
'We will probably close in February. We have been interviewing architects so once we close we hope to get a contractor to start right away on the building.
'We also want to contribute something to the downtown Uniontown revitalization work.'
NuRelm is also considering creating a 'green roof' on the building. A green roof is basically a roof top garden complete with grass and plants.
'It can double or even triple the service life of the roof. It might be fun to do a version of that here. It could be a place for our employees to hang out,' Shaaban said.
'We would also like to lease the space we won't be using,' McGraw said, adding that interest in establishing a mini-brewery or some light manufacturing has been expressed through the downtown revitalization program.
When asked what may happen if the contracts don't come through, McGraw said, 'We are doing well but if we can get this contract we will be okay. We are pursuing other contracts,' adding that one is with Northrop Grumman.
'If we would get both contracts this could be our breakaway year,' McGraw said. 'Those are two things that could propel us into rapid growth.'
Shaaban said the company grew more than 40 percent last year.
NuRelm's current clients include the state of Pennsylvania, federal government, many local municipalities and companies and organizations including the Better Business Bureau, General Federation of Women's Clubs and the 2005 National Senior Olympics.
Shaaban and McGraw brought NuRelm to Uniontown in March 2001. The company employs 10 people at present and distributes its products through a network of resellers in the Pittsburgh area.
NuRelm Inc. is an Internet software and Web services firm. 'NuContent' and subsidiary 'NuHost's Instant Web Site Update Technology' allow non-technical Web site owners to instantly update their Web sites. NuRelm makes, hosts and manages content management software, e-learning tools and customized Web applications.
