Hard Rock's Springfield casino bid flames out
Date: 10/15/2012
By G. Michael Dobbs
news@thereminder.comSPRINGFIELD — Just as the casino selection process started in earnest in the city, three developments surfaced that may create additional challenges to landing a casino license for Springfield: the chair of the State Gaming Commission is acting as a recruiter for possible developers; Hard Rock International's departure may only be from Springfield; and the condition of Interstate 91 through the center of the city.
None of these topics were addressed when the city's Chief Development Officer Kevin Kennedy announced 15 minutes after the Oct. 11 deadline to file applications and a $50,000 fee that there were three casino companies interested in completing the first phase of the city's process to select a developer.
Penn National, Ameristar and MGM Resorts International all applied. Hard Rock International, which was expected to submit its application, bowed out.
A statement from Hard Rock said, "Hard Rock International remains interested in potential casino and entertainment developments in Massachusetts. Due to various project-related obstacles relative to the timing of the city of Springfield's two-phase Request for Qualifications / Request for Proposals process, we have chosen not to submit a proposal. However, we are very appreciative of the work the city and their administration have put forth and the warm welcome extended to us during our explorations in Springfield."
Hard Rock's local partner, political consultant Anthony Cignoli, told Reminder Publications the remark from Hard Rock was "a classic corporate statement, one that would be made when there is still interest in the Commonwealth."
Hard Rock's departure from Springfield followed a conversation between Hard Rock corporate officials and the chairman of the State Gaming Commission, Stephen Crosby, in August, Cignoli said. That conversation included statements from Crosby asking the company to consider looking at a casino site in Boston.
Cignoli said that Crosby "wanted to see more competition in the eastern zone."
These statements were made in front of a member of Cignoli's staff and Hard Rock corporate counsel.
Crosby asked the Hard Rock officials, "What are you doing in Springfield?" He then added there were larger opportunities in Boston.
Crosby's statements had seriously concerned Cignoli about the role the chairman has elected to play.
Cignoli admitted as a Springfield native he wanted Hard Rock to go for a Springfield location, but acknowledged that the company "had found a challenge in site assembly," but noted, "MGM had three such challenges, but MGM had decided to double down and meet those challenges."
Hard Rock had considered locations in Chicopee and Westfield as well, Cignoli said.
Cignoli is still a partner with Hard Rock and said, "Hard Rock is not necessarily done in Western Massachusetts." He praised both Mayor Michael Bissonnette of Chicopee and Mayor Daniel Knapik of Westfield and their respective staffs for their energy and enthusiasm.
"The professionalism of both administrations was impressive," he said.
Kennedy said he was unaware of Hard Rock's reasons for not applying. He expressed his pleasure at the three candidates that did apply and said, "We will dance with those who've come to the dance."
He it made clear that the Springfield process is now closed to any possible new applicants.
Kennedy described the field of candidates as "a wonderful choice before us" and cited the unique concepts and location of each of the casinos.
He noted MGM is in the South End in a three-block area from Main to Unions streets. Penn National would be in the North End in an area composed primarily of the Peter Pan Bus Terminal, the former Kittredge Building along Columbus Avenue and the Republican building, while Ameristar is on Page Boulevard.
What each of these locations has in common is the need for access to Interstate 91. Last week, media reports indicated at least some of the raised portion of the highway going through Springfield would need major renovation or replacement.
A cost of $400 million has been reported for the repairs.
When asked, Roxanne Kinkade, director of Communications for Ameristar, told Reminder Publications, "We are aware of it, but we don't know enough [at this time]. Obviously Interstate 91 is important to any of the casinos because it is the connector to Connecticut. We will be following that story."
At this time, though, Ameristar is "absolutely" committed to the Springfield project, she said.
The same query was extended to the staff of MGM Resorts, but was not answered by press time.
Kennedy said each of the three applicants will be reviewed by a committee including himself, Director of the Department of Public Works Al Chwalek, Deputy City Solicitor Kathy Breck, Chairman of the Board of Assessors Richard Allen and Finance Director T.J. Plante.
All three companies may pass through the first phase and qualify for the second phase of evaluations that will start in November. That phase will require a detailed plan of exactly the scope and impact of the planned projects, Kennedy explained.
Part of the requirement for the second phase will be that each of the developers complete the state's application and pay the Commonwealth a $400,000 fee, part of which will be used for financial and legal vetting of the companies by the State Gaming Commission.
"We are urging the potential operators to file with them as early as possible so they can start the vetting process for the casino in Springfield," Kennedy said.
The $150,000 in fees collected last week locally will go to the Springfield Redevelopment Commission to pay for various tests and permits that go with site development, Kennedy explained.
The timetable for the completion of the city's process culminating with a referendum vote is sometime in June 2013, Kennedy believed.
He did add the city's progress toward the final selection of a casino developer and plan is still dependent upon the timetable set by the Gaming Commission.
Mayor Domenic Sarno said that he is not concerned about competition for the single casino license reserved for this part of the state.
"I don't worry about Palmer or any other Western Massachusetts community," he said.
