HARRISBURG -- Negotiations between government officials and the Penguins "are not as bleak as the papers make it sound,'' Gov. Ed Rendell said today, adding he is "still optimistic'' the team will remain in Pittsburgh.

Mr. Rendell expects to return further talks "later this week'' with team officials, talks that will include National Hockey League Commissioner Gary Bettman. The parties are supposed to meet in Philadelphia tomorrow afternoon. Mr. Rendell said he is remaining positive despite the fact that Penguins officials are in Las Vegas today to discuss a move there.

As for the letter received from Penguins officials this week declaring an "impasse'' in the talks with Pittsburgh, Allegheny County and state officials, Mr. Rendell said, "I think there are negotiating ploys that are used by both sides in the process.''

Asked if the letter was such a ploy, he said, "I think to some degree it is.'' He said the letter was "a way of letting the commissioner know that we haven't gotten all the way yet and there are still one or two outstanding issues.''

He said he is staying optimistic about what have turned into difficult talks.

"As I said to the Post-Gazette when I was out there (a few days ago), we haven't nailed it down yet, and there are one or two areas that we haven't nailed down,'' he said.

He said he spoke last weekend to Commissioner Bettman -- after getting the Penguins' impasse letter.

"I said 'Commissioner, notwithstanding this letter, I think we're making great progress and I actually think we are very close.' The commissioner has been helpful recently and he will be at the next meeting.''

Mr. Rendell said he sees no "financial advantage'' for the Penguins in a move to Las Vegas, because, like Pittsburgh, it would have to build a new hockey arena from scratch. That differs from Kansas City, which is completing a new arena and wants a hockey team to fill it.

"The financial advantage that (the team) has always said to me that accrues to them most greatly is the ability to move into a new building right away and start realizing 'plus side' revenues,'' he said. "In Las Vegas, they don't have that advantage. Las Vegas couldn't build a new [arena] any faster than we could. So that advantage, which they have been saying all along is one of their big fiscal drivers, doesn't exist.

"It does exist in Kansas City, sure, which is one of the reasons I have increased out participation, and we've worked hard. Since we started meeting (about two months ago), the Penguins have asked for about 14 changes from the original Plan B proposal. My guess is that we've made 12 or 13 of the 14.

"So that's why I'm optimistic. I think we're pretty close. And I'm looking forward to the next meeting as hopefully even wrapping it up."

More details in tomorrow's Pittsburgh Post-Gazette.