The developer has also agreed to provide no fewer than 3,000 jobs including at least 2,200 full time jobs. Watch video
Updates a story posted at 10:08 a.m. Tuesday.
SPRINGFIELD -- MGM Resorts International has pledged to pay the city more than $25 million per year in property tax payments, community impact payments, community development grants, Riverfront Park improvements and "surrounding community payment savings", according to a summary of the host community agreement approved by Mayor Domenic J. Sarno.
Sarno announced Tuesday he has chosen MGM Resorts International for a casino project in Springfield. MGM beat out a competing project by Penn National Gaming. The agreement will be forwarded for consideration by the City Council. If approved, it would then be considered for approval by voters, under state guidelines. The referendum is not yet scheduled. Prior to opening the project, MGM will makes payments and advances to the city up to $15 million, under the agreement. After the project is completed, the annual payments will exceed $25 million, including property tax payments, community impact payments, community development grants, and Riverfront Park improvements. The developer has also agreed to provide no fewer than 3,000 jobs including at least 2,200 full time jobs. The agreement with MGM, through Blue Tarp Redevelopment LLC -- the gaming company's development arm -- was announced at an 11 a.m. press conference at City Hall.
MGM is proposing a casino in a three-block area of the South End. Penn National was proposing a casino in the north end of the downtown district that included The Republican property and Peter Pan Bus Lines.
In a prepared statement, Penn National Senior Vice President of Public Affairs Eric Schippers said the company respected the mayor's decision and thanked the city for "a fair and open process".
"We are obviously disappointed by the Mayor's announcement this morning given the time, energy and resources we have invested in our proposed Hollywood Casino, which we felt was the best plan for Springfield given its optimal location and significant ripple effect," Schippers said. He continued: "We congratulate MGM on the decision today and wish them and the City of Springfield the best. Finally, we want to thank our partner, Peter Picknelly, and all of our friends in the North End and throughout Springfield for their tremendous support throughout this process."
Casinos are also proposed in Palmer and West Springfield.
The Massachusetts Gaming Commission will approve up to three casinos in the state, including one that will be located in Western Massachusetts. In addition, the state will consider approval of one slots parlor in Massachusetts.
MGM Springfield Host Community Agreement by masslive
This is a developing story. Updates will be added as our reporting continues.