Ameristar to purchase casino resort development site in Massachusetts

“This is a great opportunity for Ameristar to build on a one-of-a-kind site within the city limits of Springfield, a city that would greatly benefit from an economic development project of this magnitude,” said Gordon Kanofsky, Ameristar’s Chief Executive Officer.

“There are not many attractive new-market growth opportunities for casino companies, and this one in particular fits squarely within the Ameristar business model as an upscale regional destination casino operator.”

Ameristar has agreed to purchase the 41-acre site at Page Boulevard and Interstate 291 for us$ 16 million from an affiliate of the O’Connell Development Group Inc., which had anticipated a large-scale retail project on the site. Since Westinghouse vacated the property in 1970, it had been utilized for light industrial purposes, but more recently had been vacant. The buildings on the site are being razed, and the property will be delivered to Ameristar substantially ready for construction.

Ameristar’s development plans are preliminary but are expected to include a state-of-the-art casino continuously updated with the newest and most popular slot machines (a hallmark of the Ameristar brand) and a variety of table games, a luxury hotel, a diverse offering of dining venues, retail outlets, entertainment and meeting space, and structured parking.

“As with all of our other properties, we look forward to partnering with the city and community to ensure our project visually complements the surrounding neighborhood and suitable street improvements are made to accommodate increased traffic in the area,” said Kanofsky.

Subject to the satisfactory completion of Ameristar’s due diligence, the closing of the purchase is expected to occur in January 2012.