SPRINGFIELD – Massachusetts Gaming Commission Chairman Stephen P. Crosby praised the casino process in Springfield on Wednesday, one day after MGM Resorts International was selected by Mayor Domenic J. Sarno to compete for a state casino license. Crosby said the competition in Springfield between MGM Resorts and Penn National Gaming was beneficial and appeared to be handled well. “What...
05.01.2013 | SPRINGFIELD -- MGM Springfield President William Hornbuckle, left, and Mayor Domenic J. Sarno, right, at the MassMutual Center after Hornbuckle signed a host community agreement and transmittal letter Wednesday. SPRINGFIELD – Massachusetts Gaming Commission Chairman Stephen P. Crosby praised the casino process in Springfield on Wednesday, one day after MGM Resorts International was selected by Mayor Domenic J. Sarno to compete for a state casino license.
Crosby said the competition in Springfield between MGM Resorts and Penn National Gaming was beneficial and appeared to be handled well.
“What we saw happen in Springfield is we see the benefit of competition,” Crosby said. “We are respectful of the mayor’s decision and it looks to us like he did a good job of getting two quality companies to put their best foot forward which is what competition is all about.”
MGM Springfield President William Hornbuckle signed the newly negotiated host community agreement on Wednesday during a ceremony at the MassMutual Center on Main Street. MGM is proposing a project in the South End, now needing approval from the City Council, city voters, and ultimately the state Gaming Commission.
The agreement spells out the specifics of the project and MGM’s financial and non-financial pledges to the city and region. The conditions include that MGM will provide more than $25 million annually to Springfield in property taxes and other payments and create more than 3,000 casino jobs and 2,000 construction jobs.
During the signing ceremony in Springfield attended by more than 200 people, both Sarno and Hornbuckle urged the community to support the MGM project and lobby for its success before the council, voters and the gaming commission.
“We could not be more excited,” Hornbuckle said. “We could not be more focused. We have a great vision for Springfield.”
Hornbuckle compared getting the mayor’s approval to winning the American Football Conference, but said the company is focused on “the Super Bowl,” obtaining the state gaming license.
If approved by the council, a referendum question could be conducted as soon as July 16, officials said.
The Massachusetts Gaming Commission will select up to three casino projects in the state, including one designated for Western Massachusetts. The MGM project faces competition from Mohegan Sun, proposing a casino in Palmer off the Massachusetts Turnpike, and from Hard Rock International, proposing a project on the grounds of the Eastern States Exposition in West Springfield.
Sarno urged the public including residents and business people, to serve as “ambassadors” for the MGM project.
Sarno forwarded the MGM agreement to the City Council on Wednesday, and it will be formally received at the council’s at its next regular meeting Monday at 7 p.m., at City Hall.
Sarno is seeking council approval within two weeks, to allow for a citywide referendum vote on July 16.
Penn National, having proposed a project in the North End of Springfield, could still propose a different site in Massachusetts, if desired, because it paid the $400,000 state application fee, Crosby said.
“We would encourage them to look to get in the game somewhere else,” Crosby said.
However, time is growing short in Western Massachusetts and elsewhere, except southeastern Massachusetts for a casino plan, he said. There is also time to bid for a slots parlor, he said.
A Penn National spokesman said Tuesday it is too early to comment on any future plans in Massachusetts, if any, and the company had no further comment Wednesday.
Chicopee Michael D. Bissonnette said the possibility of a casino continues to be alive in his city, but he did not say specifically if Penn National has approached him about that possibility.
He said he has been contacted by three separate developers having an interest in Chicopee, and as recently as Tuesday. Potential sites have been mentioned including Cabotville Mill in downtown Chicopee.
Peter Pan Bus Lines President Peter Picknelly, a partner in the Penn National project, said he would have liked to see Springfield choose Penn, but is optimistic about the city’s future, in an interview with CBS-3 Springfield, The Republican’s media partner.
Under the host community agreement in Springfield, MGM commits to making payments and advances to the city up to $15 million prior to the casino opening, and then at least $25 million annually once opened, including property taxes, community impact payments, and Riverfront Park improvements.
Under state law, the developer also must make payments to some surrounding communities to mitigate potential impacts of the casino.
The company will also strive to hire at least 35 percent of its workforce from Springfield, and 90 percent from Springfield and the region, under the agreement.
The company has also pledged its best efforts to ensure that at least $50 million is spent annually on local goods and services, among other pledges to boost the business and cultural assets of Springfield.