Selectmen approve Civic Economics for MGM baseline study

Date: 12/23/2014

EAST LONGMEADOW – At its Dec. 16 meeting, the Board of Selectmen voted unanimously to approve Civic Economics as the independent group to complete a baseline study for the continued economic impact of the MGM casino in Springfield.

“We have a surrounding community agreement with MGM that basically provides for what they call a look-back study,” Attorney Frank Fitzgerald, corporate counsel for MGM, said. “The look-back study contemplates that in order to have a baseline, so there's a provision in the agreement that requires MGM to select a study group or consulting group that will do the base-line study.

“In other words, [the consulting group] would find what the current status of all the economics concerned on traffic, business details or otherwise, now; to be then taking another look at that 15 months after the casino opens, which is probably 4 years from now,” he continued.

Fitzgerald said the baseline study must be completed within a 90-day period after MGM obtains its licensing. On Nov. 17, MGM paid $85 million to the state in order to be granted its gaming license. 

In order for Civic Economics to complete the study, four out of six communities that have agreements with MGM must approve of the group, he added.

“The reason why [Civic Economics] was selected is because they have never represented gaming companies before, they’ve always worked for cities and towns,” Fitzgerald noted. 

 traffic study would be a part of the baseline study, which MGM is suggesting should be completed by TEC, he added. Ultimately, the base-line study would likely begin during the first week of January 2015.

“TEC has been MGM's traffic consultant in the past,” Fitzgerald said. “And MGM understands that that might raise some red flags with people because they've worked for MGM.” 

MGM is suggesting that TEC be hired as traffic consultant because it has all the existing data on the traffic impacts of the communities, the company has the respect of the Pioneer Valley Planning Commission (PVPC), and there isn't much opinion involved with baseline studies, he added.

Board of Selectmen Chair Paul Federici said he and Selectman Angela Thorpe met with representatives from TEC the previous week and he was impressed by the company's quality of work.

As part of the motion to approve Civic Economics, the board also approved TEC to complete a traffic study under the purview of the PVPC.

In other business, the board determined to make a priority list of four items for capital planning that includes Information Technology Department maintenance, a vehicle for the Recreation Department, new police cruisers, and a clerk document-imaging machine.

The board agreed to wait until its Dec. 29 meeting to make a recommendation to the Appropriations Committee, which the board needs to present to the committee by Jan. 6.