MGM-Springfield pact allows casino company to request delay for project

City officials said Tuesday that MGM wants to delay the original late-2017 opening to coincide with the completion of the Interstate 91 project through Springfield. The I-91 job is scheduled to be completed and open for full use in August 2018, but could be finished as soon as February of that year if the contractor meets an incentive-based schedule.

An MGM representative would not confirm that such a delay was being sought, saying instead officials plan to have a "full" discussion with the state Gaming Commission on June 25 to review the construction schedule and permitting delays the project has encountered.

According to the host community agreement between Springfield and MGM, the reasons for an extension can range from a tornado or other "Act of God," to "any impacts to major modes of transportation to the project site." MGM would need to submit a request for an extension of time, not yet submitted, officials said.

A major reconstruction of the Interstate 91 viaduct in the downtown Springfield area is scheduled to begin this summer and may be not be completed until mid-2018. City officials have acknowledged the project will create significant traffic challenges and needs to occur in coordination with the MGM project.

"Unless the city agrees, the project must be completed within 33 months as specified in the Host Community Agreement," City Solicitor Edward Pikula said. "However, like all major construction project agreements, MGM, under certain defined circumstances beyond its reasonable control, may be entitled to a grace period if such circumstances have occurred and will delay its obligations."

The mandated 33-month timetable for completing the project – August 2017 – began ticking in November 2014 when MGM received it's state license.

After that deadline, there would be an additional six month deadline to open the casino, under the agreement.

According to a spokeswoman for MGM Springfield, the company would not be subject to penalties until the full 39 months elapses, roughly February 2018, or longer if the time extension is granted. Penalties could be as much as $65,000 per day.

The extension can be granted for specific "events or circumstances" known as "force majeure," that force a postponement in the project. Those events are listed in the host community agreement as including:

Strikes, lockouts, labor disputes.

Acts of God, tornadoes, hurricanes, floods, sinkholes, fires, landslides.

Acts of public enemy, acts of war, terrorism, effects of nuclear radiation.

The failure by, or unreasonable delay of, the city or Commonwealth or other Government Authority to issue any permits or approvals necessary.

Any impacts to major modes of transportation to the project site.

Any temporary restraining order ... or litigation or administrative delay which impedes the ability of the developer to complete the project ...

Concealed and unknown conditions of an unusual nature that are encountered below ground or in an existing structure.

MGM must promptly notify the city in writing of any such event forcing a postponement in the casino opening, under terms of the host community the agreement.

An extension requested for the above reasons would require an amendment to the host agreement by the city and a new schedule approved by the Massachusetts Gaming Commission. An extension requested for a reason not listed above would require an amendment approved by the council and mayor. The commission would have to approve the new schedule, Pikula said.

Regarding the I-91 project, Michael Verseckes, spokesman for the Massachusetts Department of Transportation, said: "Because of the scope of this project it is incumbent on MassDOT and its contractor to ensure that any and all steps be taken to minimize the impacts to neighborhoods and access to businesses caused by construction while allowing the work to proceed in a manner that ensures the project is completed in a timely fashion.

"Special consideration is given to regional highway traffic, traffic circulation on city streets, and ways in which construction can be sequenced to maximize time outside of rush hour periods and holidays that generate large traffic volumes."