Penn National, under a formal agreement with the owners of the Paramount Theater, will help revitalize and lease the Main Street venue.
Updates a story posted Friday at 4:31 p.m.
SPRINGFIELD — As Penn National Gaming and MGM Resorts International prepare for public presentations Monday regarding the impact their casinos would have on traffic and entertainment, Penn National Friday revealed a new agreement to help revitalize the Paramount Theater.
The Monday presentations will take place at CityStage at One Columbus Center, from 2:30 to 4:30 p.m., and local officials are urging area residents and business owners to attend. There is seating available for more than 400 people.
The event will draw the top executives from MGM and Penn, including both of their chief executive officers, said Kevin E. Kennedy, the city’s chief development officer.
Peter M. Carlino, chief executive officer of Penn, and James J. Murren, chief executive officer of MGM Resorts, are scheduled to be among the casino executives in attendance.
“There will be upper management for both companies which I think is indicative of their interest in the importance of a casino in Springfield,” Kennedy said. “It is also a clear indication both companies are very interested in traffic considerations and entertainment considerations.”
As revealed Friday, Penn National has signed a formal agreement with the New England Farm Workers Council, the owner of the Paramount property, said Eric Schippers, senior vice president of public affairs at Penn National.
The agreement includes financial support for the restoration project and a lease agreement that will allow Penn National to use the venue for live entertainment, officials said. The Paramount was built in 1929, and was purchased by the Farm Workers Council and its president, Heriberto Flores, three years ago for approximately $1.72 million.
“Penn National came to us early on in the process to include us as partners in their proposal to revitalize Springfield,” Flores said in a prepared release. “We are excited to have a signed agreement that will revitalize the Paramount Theater and bring a diverse group of entertainers that will appeal to not just one segment of our city, but to all our citizens.”
Schippers said the revitalization of the Paramount is considered an important component of Penn’s planned “ripple effect” of the project tying the North End casino into the downtown core. The specific financial contribution and further details of the lease agreement were not released.
“Our proposal is the only one that has involved the local minority community at this level, and we are incredibly proud to be associated with an organization that is such a powerful and effective voice for the Latino community in Springfield,” Schippers said.
The agreement is contingent on Penn National obtaining a casino license in Springfield.
Penn National on Friday also revealed that it has dropped plans for a sky bridge, and will present alternate plans for linking with Union Station and the Paramount Theater.
The Massachusetts Gaming Commission will grant up to three casino licenses, and one slots-only parlor in the state. One of the casinos is designated for Western Massachusetts. MGM Resorts International is proposing a casino in the South End of Springfield, and casinos are also proposed in Palmer off the Massachusetts Turnpike and in West Springfield on the grounds of Eastern States Exposition.
Schippers and Timothy J. Wilmott, president and chief operating officer of Penn National, revealed some details of their entertainment plans Friday.
Penn will do “cross marketing” with some of the entertainment and cultural institutions in Springfield, such as the MassMutual Center, the Basketball Hall of Fame, CityStage, Symphony Hall and the Springfield Museums, Schippers said. In addition, the casino and a planned hotel will provide information and incentives for its patrons to visit those venues and other local businesses, Schippers and Wilmott said. Wilmott said the employees would also become patrons of local businesses.
MGM Resorts has also stated that its project would contribute to, and promote local businesses and the city’s entertainment and cultural attractions.
Regarding traffic, both Penn and MGM have stated that their traffic plans are tailored to accommodate the increased traffic that will come into the downtown district and south and north ends. Both projects will draw traffic particularly from Interstate 91 and 291 and the Massachusetts Turnpike, they said.
The Penn project is estimated to draw 10,000 visitors a day, more on weekends, less during the week, Wilmott said. Traffic, however, would be coming and going, “more like a shopping mall,” he said.
Following the public presentations on Monday, city officials and consultants will negotiate host community agreements with both casino companies. An agreement with one or both firms needs approval from Mayor Domenic J. Sarno, the City Council and city voters.
One or both agreements, if approved, would then be submitted for consideration by the state Gaming Commission, officials said.