Press Release, Contact: Jim Leydon, Communications Director
Springfield Submits Letter of Support for Amended MGM Springfield Project Schedule to Massachusetts Gaming Commission
June 25, 2015 –Springfield, MA– The City of Springfield has notified the Massachusetts Gaming Commission (“MGC”) of its position with regard to MGM Springfield’s proposed schedule for construction and opening of the MGC Category 1 licensed facility approved by Springfield voters as well as voters in a statewide referendum. MGM Springfield has requested that the MGC approve a schedule whereby construction is completed in August 2018, and an opening is set for September 2018.
Under the Springfield Host Community Agreement (“HCA”), MGM Springfield is allowed up to 33 months from the issuance of its gaming license to complete project construction and up to an additional 6 months to commence project operations. Considering the effective date of its gaming license to be November 7, 2014, under the terms of the HCA, MGM Springfield must complete project construction by August 7, 2017 and commence project operations by February 7, 2018.
MGM Springfield has proposed to the City that the HCA be amended to allow a delay in completion of project construction and opening due to the I-91 viaduct construction. After discussions with City staff and the City’s consultants, as part of such amendment, MGM Springfield has offered the following:
- MGM Springfield will make an additional payment to the City of $1 Million due in the Fall of 2017. Such “new money” will be dedicated to public safety.
- MGM Springfield will make an additional pre-payment to the City of 121A payments of $3 Million due in the Fall of 2017.
- MGM Springfield will continue to make all payments due the City under the HCA according to the original project construction schedule, except for an adjustment to the annual Fixed Community Impact Fee of $2.5 Million due on July 1, 2018, and a prorated payment of such fee in the amount of $993,055 due on February 7, 2018. The Fixed Community Impact Fee will be amended to provide for a prorated payment of such fee in the amount of $2 Million due at project opening on September 6, 2018 and the first annual payment of such fee in the amount of $2.5 Million due on July 1, 2019.
- The other payments to be made by MGM Springfield to the City under the HCA which will remain the same include but are not limited to the Riverfront Park payment of $1 Million (August 8, 2016); the Union Station payment of $500,000 per year for 15 years (commencing August 8, 2016); the Upfront Community Impact Fee of $2.5 Million (May 8, 2017); the Community Development Grant of $2.5 Million (payable annually on July 1 beginning July 1, 2018 with a prorated payment due February 7, 2018).
The City and MGM continue to discuss various project design changes. In part, project design changes are subject to finalization of certain project design matters by the Massachusetts Historical Commission (“MHC”).
In response, Mayor Sarno stated: “The City wishes to cooperate with the MGC and MGM Springfield to assure that the opening of the MGM Springfield development is successful for MGM Springfield, the City, and the Commonwealth of Massachusetts. I am satisfied that the City’s internal staff and its consultants have worked diligently to assure that the project continues to move forward with the best interests of the public in mind.”
The City’s Chief Development Officer, Kevin Kennedy stated: “While the reconstruction of the I-91 viaduct has been in the planning stages for quite some time, the detailed schedule has only recently been finalized. The full beneficial use of a reconstructed viaduct is important to economic activity in the region, and it is important that the MGM Springfield development schedule is coordinated with the MassDOT schedule for road reconstruction.”
City Solicitor Ed Pikula stated: “The Host Agreement provides for the flexibility to make adjustments as needed, and our discussions have resulted in a proposal that will be recommended for approval by the Mayor and City Council once all plans have been reviewed by the State and City.
Attached is a copy of the letter addressed to the Massachusetts Gaming Commission Chairman, Steve Crosby.
There will be press availability in the Mayor’s Office at 10:30 a.m.