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MGM changes plan, ignites controversy

Date: 9/24/2015

SPRINGFIELD – The news MGM Springfield has been speaking with Opal Development about moving the 54 market rate apartments from the casino campus to another location came as a surprise to Chris Moskal, the executive director of the Springfield Redevelopment Authority (SRA).

The SRA owns the 31 Elm St. building and the SRA had named Opal – which is owned by Peter Picknelly – as the preferred developer several years ago. Moskal told Reminder Publications the SRA Board has invited Opal to come to its Oct. 6 meeting to discuss its most recent plans for the building.

An MGM spokesperson confirmed for Reminder Publications that Opal and MGM have been discussing redeveloping the Court Square building.

Moskal said the board was aware since last November that MGM and Opal were in discussions, but few details were known. There had been some talk about a boutique hotel being built there, he said.

He welcomed the idea of market rate housing downtown in the historic building.

Moskal wasn’t the only person who didn’t have details about the changes in the casino plans. At the press conference on Sept. 22, Mayor Domenic Sarno said he had not been told about where the apartments would potentially go except they would remain in the South End.

MGM released the mgm1.jpginformation on Sept. 22 of significant changes in its plans for the casino. The 25-story glass tower hotel is out and will be replaced by a six-story building.

In the press release, Michael Mathis, MGM Springfield president, said, “I believe this is one of the most exciting moments in the history of MGM Springfield. As we collaborate with the city on what is best from an economic development perspective, the finer details are taking shape and our programming is improving minute by minute.”

An MGM spokesperson said Mathis might speak to the press about the changes after the Massachusetts Gaming Commission meeting on Sept. 24.

The hotel would still have 250 rooms, Sarno said, but just a different design. MGM described the change by saying “Under the revised design, the historic columned façade at 73 State St., which had been the iconic focal point for the hotel tower, will remain as such for the updated structure, which will be home to what is tentatively being called the ‘the South End Market.’ With floor-to-ceiling windows, the market will be an inviting, trendy gathering space featuring local and national food and beverage vendors.”

The other alteration is a decrease of 150 spaces in the parking garage.

Sarno, the City Council and the Gaming Commission must approve the changes. City Solicitor Edward Pikula explained that under the Host Community Agreement amendments could be made.

Sarno said despite the changes, MGM Springfield will still open in the fall of 2018. He added the housing part of the project could start construction before the main campus begins.

The mayor admitted early skepticism about the changes. “The pushback was strong,” he said.

Kevin Kennedy, the city’s chief development officer, said MGM has been meeting with him for two to three months talking about potential changes.

City Council President Michael Fenton said he was “speechless” about the announcement. Appearing on the “Bax and O’Brien” show on Rock102, he expressed concern about eliminating the hotel that he said added “marquee value” to the project.

City Councilor Tim Rooke expressed support for the change. He said, “Essentially we are taking a 25-floor hotel tower that was going to hold visitors captive and they are laying it in its side to make it more compatible for interaction and creating a New England feel versus a Las Vegas one. There will still be the same amount of hotel rooms. There will be additional market rate housing brought downtown. The footprint of the project will expand.”

He added, “The commitment and investment to build in Springfield is now stronger than ever. Increased pedestrian traffic will be increased and created downtown by eliminating the hotel tower and expanding the footprint throughout downtown.

"The rumors of MGM not being committed to this project in Springfield are ridiculous. This will be a destination location – one of the first of its kind. It will not be a ‘box’ casino. It will create pedestrian traffic and interaction with our businesses both existing and new.”

Mathis said, “We have never lost sight of how important it is to integrate our development and its unique design needs with this historic New England downtown. We think the changes along Main Street and this new layout is more in line with a true downtown mixed-use development that will make MGM Springfield the premier urban resort in the industry.”