City officials debate over casinos on the ballot
Date: 2/14/2013
By G. Michael Dobbs
news@thereminder.comSPRINGFIELD — Two casino developers may go into the process, but only one may exit onto the ballot.
Although both developers will now pass into the next phase of the city's casino selection process — negotiating a host agreement with Mayor Domenic Sarno — Kevin Kennedy, the city's chief development officer, believes only one should make it to the ballot and to the Massachusetts Gaming Commission (MGC).
Although Kennedy stressed at a press conference on Feb. 11 that it would be Sarno's decision alone whether or not there is only one plan for voters to confirm later this year, he is recommending that only one plan be presented.
His reasoning is that if the MGC is considering two plans for Springfield, the Mohegan Sun proposal for Palmer, the Hard Rock International casino in West Springfield, the pair of Springfield casinos will decrease the odds of either Springfield businesses receiving enough votes to win the sole casino license.
"I'm still of a mind that one is the best way to go," Kennedy said.
He's not the only city official who is thinking one plan instead of two should be on the ballot. In a letter dated Feb. 11 from City Council President James Ferrera to Sarno, Ferrera wrote, "I also disagree with Attorney [Edward] Pikula's comment that by voting to put two operators on the ballot will make the job of improving the proposals more difficult. It will make the job easier since the competition between the two companies will continue and will also be scrutinized by the voters of Springfield. It will also eliminate any concern of favoritism and keep the process transparent."
Ferrera recently expressed concern over issues that were brought up regarding both Penn National Gaming and MGM Resorts International in a letter sent to Sarno on Feb. 7. He wrote, "After disturbing information regarding both Springfield casino developers was submitted to the Committee, the Committee unanimously voted to contact both MGM and Penn National Gaming to come before the group to address these issues in a public forum. These issues range from MGM's organized crime connections to Penn National Gaming's reported ill treatment of racetrack horses. These and other issues have been reported and documented by The Wall Street Journal, Bloomberg News and other media sources."
He continued, "We recognize the process that your administration has been conducting and we recognize the oversight authority of the Massachusetts Gaming Commission to look into these issues. However, we believe that it is imperative to get answers and explanations from Springfield's two gaming developers as we move further into a developers' election decision and referendum. We are obligated to provide a full set of facts to the people of Springfield."
Ferrera told
Reminder Publications that his casino site committee is providing "a system of checks and balances." He added the City Council must do its own "due diligence" in order to ratify the agreements forwarded by Sarno.
Kennedy hoped the mayor's negotiations and the ratification of the agreements by the City Council would take place so the vote on the casino would be on the same ballot as the special senatorial race on June 25, but he quickly admitted that schedule is "extremely tight."
He urged voters to go onto the city's casino website,
www.springfield-ma.gov/planning/casino, and view the "Proposal Assessment and Evaluation Matrix."
*** Don't let the fancy name fool you. The "Proposal Assessment and Evaluation Matrix" that compares the MGM Resorts International Proposal to the Penn National Gaming plan is an old fashioned tale of the tape.
The apples-to-apples assessment was released by the city on Jan. 30 and presents the details — and a few surprises — of the competing plans.
If size matters, then the MGM proposal wins. Its 14.5-acre site would contain a 127,000 square-foot gaming area with 3,100 slot machines and 100 table games with 38,000 additional square feet reserved for expansion.
The MGM hotel would have 202,000 square feet with 294 rooms and an expansion potential of 206 more rooms. There would be a convention center of 42,000 square feet
Penn's site is 13.4 acres with 120,000 square feet of gambling featuring 2,000 slots to start (with expansion potential of 850 more) and 20 table games. The hotel would be 141,000 square feet and have 258 rooms with a meeting and conference space of 20,000 square feet.
MGM would have 43,000 square feet of retail and restaurants. Penn would have 10,500 square feet of retail along Main Street and 4,000 square feet of retail at the casino and along the Paramount Theater block.
MGM would have an eight-screen movie theater, an 18-lane bowling alley, and six events annually at the MassMutual Center and four shows annually at Symphony Hall and City Stage.
Penn would assist in the renovation of the Paramount Theater, with a programming commitment yet to be determined. There would be additional programming at The Republican's "21st Century Village Square." Penn has a "pending memorandum of understanding with City Stage and Symphony Hall and discussion with MassMutual to ensure no cannibalization."
MGM has worked 54 new units of market rate housing into its plan, while Penn noted a "possible ownership interest in Morgan Square redevelopment" of 266-market rate housing.
Other aspects of the Penn proposal that have the word "possible" describing them are the move of the The Republican's press to a new location and the relocation of MassLive to downtown.
Only MGM has a notation under economic development for the Commonwealth. The company has proposed it would manage the MassMutual Center for no fee that would save the state $250,000 annually.
Both companies also described the jobs the projects would create. MGM reported that 3,071 direct permanent jobs would be created with 2,000 construction jobs. It has made a commitment to hire 35 percent of its work force locally and has a 17 percent target for hiring minority, women, and disadvantaged during construction. MGM also has made a commitment to reserve jobs for veterans.
Penn noted it would have 2,400 casino-related jobs and 2,100 construction jobs. While it will reserve jobs for women and minorities, it has no specifications for veterans.
If MGM is awarded the casino license, it can begin construction in February 2014, and the casino complex should be completed by May 2016. Penn stated that if it can begin construction by April 2014, it would be completed by December 2016.
