Joseph Kaczmarek , Associated Press Chuck Ardo, spokesman for Gov. Ed Rendell, takes a phone call from Gov. Rendell tonight in Philadelphia, just prior to reading a joint statement from elected officials and the Penguins that negotiations will resume next Wednesday. Click photo for larger image.

PHILADELPHIA - Stating "significant" progress had been made on a deal for a new arena home for the Penguins, a spokesman for Gov. Ed Rendell brought the curtain down on tonight's talks among team officials and state and local leaders, saying the meeting would resume next Wednesday.

Tonight's high-stakes meeting was viewed as possibly deciding the team's future in Pittsburgh.

"We had a very constructive meeting where significant progress was made," said Chuck Ardo, the governor's spokesman tonight. "The parties have agreed to meet again next Wednesday. They also have agreed that no further comment will be made."

Penguins co-owners Mario Lemieux and Ron Burkle and Gov. Ed Rendell, Pittsburgh Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato convened about 7 p.m. at a secret location in Philadelphia, hoping to hammer out a deal that has escaped completion for more than two months.

Aiding the effort was National Hockey League Commissioner Gary Bettman, who traveled from New York to be part of the session, the first meeting involving both Mr. Lemieux and Mr. Burkle since Jan. 4.

The hastily arranged talks came four days after the two owners declared an impasse in negotiations and vowed to aggressively explore a move. Since then, Kansas City, which will open the $276 million Sprint Center this year, has sweetened an offer for the team that already includes free rent and a split of the building revenues.

The offer was so good that Houston, one of the cities interested in the Penguins, dropped out of the bidding.

Despite the Penguins' vow to pursue other cities, Chuck Ardo, Mr. Rendell's spokesman, said before the meeting the governor was "guardedly optimistic" that public officials could finish the deal at the gathering. He, Mr. Onorato and Mr. Ravenstahl have said they thought the parties were close to an agreement.

"If everybody rolls their sleeves up and comes in with a positive attitude, this thing can be done," Mr. Ardo said.

At the same time, Mr. Rendell and Mr. Ravenstahl would not rule out an appeal to the NHL to block a move by the Penguins, given the team's passionate fan base in Pittsburgh, which has led to sellout after sellout, and the arena deal on the table.

Mr. Ardo described the start of the meeting as "serious and business-like." He viewed the fact that the two sides were continuing to talk after more than three hours at the table as a "good sign."

"It's indicative that they found more things to talk about. It's certainly reflective of the fact that nobody walked in and made demands that would cause the other side to walk away," he said.

The Penguins have offered to put up $4 million a year toward the arena - the same amount Mr. Rendell requested from them a year ago. The team contribution would include $3.6 million a year in rent and $400,000 annually for capital improvements.

It also agreed to pay $500,000 a year for a parking garage as part of the arena complex.

Despite that, the parties have been unable to reach a deal. The rest of the arena funding would come from Pittsburgh casino licensee Don Barden and from a gambling-financed state economic development fund. Each would contribute $7.5 million a year.

In a letter declaring the impasse, Mr. Lemieux and Mr. Burkle said they were concerned about the appeals of the casino license award to Mr. Barden, saying the litigation creates more uncertainty in the financing of the arena.

The Penguins had formed a partnership with Isle of Capri Casinos Inc. in its unsuccessful bid for the license. Isle of Capri, which pledged $290 million for an arena as part of its proposal, is one of those appealing the award.

Sources close to the team also have complained about the treatment Penguins negotiators have received from public officials, which included a table-pounding outburst by Mr. Rendell Jan. 18. Last week, the state refused to share interest rate information with the team, creating even more friction.

The letter declaring an impasse came even though Mr. Rendell, Mr. Onorato, and Mr. Ravenstahl thought the parties were close to a deal.

Among the remaining issues were how to pay for an extra $20 million added as a contingency to a proposed arena bond issue. The additional funding increased the bond issue from $270 million to $290 million.

The parties also were in dispute over who would pay if the guaranteed maximum price for the arena exceeds the pool of available funds.

Mr. Rendell said the parties had all but settled difference over development rights to the site of Mellon Arena, which would be demolished, and parking revenues.

After declaring the impasse, the Penguins, led by Mr. Burkle, visited with Las Vegas Mayor Oscar Goodman Wednesday and talked with officials with Anschutz Entertainment Group, which will manage the Sprint Center in Kansas City.

More details in tomorrow's Pittsburgh Post-Gazette.