Report strategizes town’s negotiations with MGM
Date: 12/5/2013
By Chris Maza
chrism@thereminder.comEAST LONGMEADOW – At the Board of Selectmen’s Nov. 26 meeting, Michael Albano delivered a packet containing the findings of his study into the economic impact a proposed MGM casino in Springfield would have on the town.
Albano & Associates Inc. was selected from a pool of four candidates through a competitive bid process in which the firm’s bid of $10,000 was significantly lower than other companies.
At the Special Town Meeting in October, residents approved the allocation of up to $30,000 for the study, which will be reimbursed by the Massachusetts Gaming Commission and MGM.
“This is exciting for us,” Albano told the board. “It’s exciting because it’s cutting edge, it’s new, and no matter what casino opens up across the country, it’s a new development and it has different impacts for surrounding communities.”
Albano said the report he filed was “point specific” and contained possible strategies for negotiation that could not be discussed openly, however, he laid out some of the main points of emphasis in the meeting’s open session.
“The key term here is that surrounding communities have to be reasonable in their approach when asking for mitigation funding and the term reasonable is defined,” he said. “We have to show quantitatively how much the impact is going to be, which is not an easy task.”
He added the town must also have an outline of how it wishes to recover the mitigation fees.
First and foremost, Albano identified public safety as a service that would be significantly impacted.
“In talking with [Police] Chief [Douglas] Mellis, we’ve outlined what you think you are going to need going forward,” he said.
While traffic was not within the scope of work outlined for Albano because the town is participating in the Pioneer Valley Planning Commission’s peer review of MGM’s traffic study, he included his projections for increases in traffic.
“We’ve tied it to a formula where you can access, I think, a reasonable amount of funding,” he said.
Albano noted the town could also leverage funding down the road in order to do projects immediately.
“For example, if you were to receive a 20-year sum on an annual basis from MGM, you could, in effect, issue a bond up front, use that payment to do the work necessary to accommodate increased traffic,” he said. “Therefore you are leveraging money short term and long term to make the necessary improvements to make the roadways safe.”
The rotary, he said, would be a major point of emphasis.
“Any traffic that you’re going to get through [Route] 83 is going to cause a problem there,” he said, adding that at minimum he believes MGM should fund a study on the dangerous intersection and should be responsible for any improvements. “Under no circumstances do we believe the taxpayers of East Longmeadow should be held liable for any increased traffic based on the casino development project in Springfield.”
Addressing recreation issues, Albano specifically targeted Franconia Golf Course, a Springfield municipal course for which the town donated property when it was developed in exchange for lower user fees for East Longmeadow residents.
“It was never intended to be a commercial venture, but published reports indicate that MGM wants to use both Franconia and Veterans golf courses to reward players as part of the development project,” he said. “I think it’s going to deny access to East Longmeadow residents and MGM should compensate the town in some amount.”
Albano also said problem gamblers and gambling addiction and substance abuse would affect the town. His proposal included a plan to release a request for qualifications for counselors, an approach that differs from the state norm, which requires those with issues call toll free hotlines to seek help.
“We think the residents of East Longmeadow should be treated in a much better fashion than that,” he said.
In working with the Assessors Office, Albano said his firm was able to identify an area in town in which property values would be most affected.
“Our recommendation would be to create a stabilization fund so that if the property values go down and the revenues go down in terms of the tax base, you can access an escrow account immediately to take that money and put it back into use in the town coffers,” he said.
A 6.1 percent decline in Massachusetts State Lottery revenues is also expected, Albano said, an issue to which he also suggested creating an escrow account funded by MGM to ensure there is no loss of revenue to the town.
He also said after talking to area businesses and citing various studies, it was his belief there would be a decline in local business, specifically restaurants.
“We are suggesting that MGM fund an economic development specialist, a business improvement and retention specialist, a part time position, that would be at the disposal of the people of East Longmeadow to make sure the business climate is somewhat promoted,” he said.
Albano said beyond the items listed, there were areas that he felt would not be impacted, or the impacts could not be quantified numerically at this time.
