MGM's casino proposal wins over Springfield, Massachusetts

During a crowded press conference at City Hall, Sarno announced his decision to choose MGM Resorts, which plans an approximately us$ 800 million casino in the South End. MGM’s proposal beat out a competing offer by Penn National Gaming, for a project in the North End of the downtown district. "[MGM] best delivers the game-changing economic, financial benefits, urban planning design benefits and positive ancillary spin-off benefits," said Sarno.

The agreement will be forwarded to the City Council on Wednesday. If the council approves the agreement within two weeks, Sarno said it would allow for a citywide referendum vote that could be as early as July 16. 

The council can approve or reject the agreement. The project also must be approved by the voters and be chosen by the Massachusetts Gaming Commission for the only state-issued casino license in Western Massachusetts before it can proceed. Sarno said it “has truly been a spirited competition” in Springfield involving two world-class casino developers. 

MGM, however, provided the development proposal and agreement “that best delivers the game-changing economic, financial benefits, urban planning design benefits and positive ancillary spin-off benefits,” Sarno said. 

William J. Hornbuckle, president and chief marketing officer for MGM Resorts, said the company is “ecstatic” with the mayor’s decision. The mayor called him just hours before the press conference, he said. 

The progress and economic development that MGM can drive for Springfield and Western Massachusetts “is what won the day,” Hornbuckle said. The company did not take Penn National lightly, and will not take other casino competitors in the region lightly, he said. 

In addition, the Massachusetts Gaming Commission is conducting background checks on all casino companies vying for a gaming license in the state and could disqualify firms, under state law. The commission may issue licenses for up to three casinos in the state including one casino designated in Western Massachusetts, and there will also be one slots parlor considered in the state.

Sarno’s agreement with MGM followed more than two months of negotiations between city officials, city consultants and representatives of both casino companies. MGM is scheduled to formally sign the agreement during a press conference at the MassMutual Center on Wednesday at 10 a.m., and details will be shared with the council at 7 p.m. at City Hall. 

Under the host community agreement, MGM Resorts will make payments and advances to the city up to us$ 15 million prior to the casino opening. 

Once opened, MGM will pay at least us$ 25 million annually including property taxes, community impact payments, community development grants, and Riverfront Park improvements” according to a summary. Under state law, the developer also must make payments to some surrounding communities to mitigate potential impacts of the casino. 

The developer has also agreed to use its best efforts to create and maintain no fewer than 3,000 operational jobs including at least 2,200 full time jobs. It also must use its best efforts to fill jobs with at least 35 % Springfield residents and 90 % from Springfield and area communities, under the summary.

The agreement is with MGM, through Blue Tarp Redevelopment- the gaming company’s development arm.