Connecticut’s two gaming tribes, the Pequots and the Mohegans, have received five proposals in answer to its RFP for a third, tribal-owned casino to be built near the border with Massachusetts, near Hartford. The tribes, fierce rivals for close to two decades, now seek to build a casino that will benefit both and formed MMCT Venture to carry forward that goal.
The purpose of the casino is to blunt the effects of the $950 million MGM Springfield that is expected to open in two years.
The deadline for submitting the RFPs was October 15. This is the second call for proposals from the tribes, which reopened the bidding process last month because, they said, some of the original proposals had changed and the proponents wanted to submit new ones. Since it was doing that, the tribes reasoned that they might as well allow new proposals as well.
South Windsor, which was eliminated from the running the first time the tribes put out an RPF, is trying again. There are also new proposals from East Windsor, East Hartford, Windsor Locks, the Bradley International Airport. The city of Hartford has said it would be interested in discussing hosting a casino, but won’t be proposing one itself.
The tribes have rejected a proposal for a casino on 165 acres from a Plymouth land owner because the city is out of the border area near Interstate 91 that it wants to concentrate on.
Silver Lane Partners in East Hartford proposes a casino for the now defunct Showcase Cinema. Anthony W. Ravosa Jr., managing partner, said that the revamped proposal is for converting the cinema into a casino but also putting in an addition to the rear of that building to create a space of as much as 300,000 SFT that could hold 2,000 slots and 150 gaming tables, which is 50 more than its original proposal. The new proposal also includes a partnership with the Radisson hotel in Hartford to act as a convention host for the casino.
Ravosa declared, “It’s a rethinking and a new vision for the entire property. The plan allows us to accomplish this on the existing property that we have optioned.”
Ravosa says the proposal has built in a possibility of “rapid development that would be “programmatically phased in to minimize operational disruption and patron inconvenience.” The primary goal, he said, would be to “beat MGM to opening.”
Kevin Brown, chairman of the Mohegan Tribal Council said in a statement: “Now more than ever, the Mashantucket Pequot and Mohegan tribes are confident that the site we select will make our facility competitive with MGM Springfield.” He added, “We look forward to reviewing and comparing these new amended submissions and continuing dialogue with Connecticut’s communities about how we can work together to save jobs and revenue in our state.”
Sportech Venues proposes bringing a casino to Windsor Locks on property near Bradley Airport, a property that has an off-track betting parlor and Bobby V’s Restaurant and Sports Bar. In a letter to the tribes Sportech President Ted Taylor wrote, “Our own gaming location is less than a mile away and with the support of an adjacent property owner, could quickly and easily be extended in a cost effective manner to lessen the impact of MGM Springfield.”
South Windsor Town Manager Matthew B. Galligan identified his town’s site described his town’s bid for 22 acres near Interstate 291 that is in the development zone that the city co-owns. The casino would substitute for the industrial park that the city and co-owner DCK of Pittsburgh had original proposed.
Said Galligan: “It’s a great location and I think it’d be great for the capitol region. The site is considered shovel ready.”
Galligan told the Progress News: “I think it’s good for the capital region because not too far from here is the science center and the convention center and I think it could create a synergy to have this area as a destination area in the Hartford region.” He added, “We do need to protect the revenues of the State of Connecticut.”
East Windsor, which has dropped an earlier proposal for 33 acres that drew intense neighbor opposition, now proposes to build on 55 acres near Interstate 91 where the Showcase Cinema once operated. It has 40 acres of zoned commercial land.
First Selectman Robert Maynard told Yogonet, “The site is surrounded by state highways and is very visible from a bluff, so it’s a nice venue. We wanted to get something in there and the casino would be a fine thing. And this would definitely increase our grand list and retain jobs.”
To the Hartford Courant he said that the city has secured letters of intent from two proper owners. “We have all our ducks in a row,” he said. “This is a great location and very visible from the highway.”
“It’s zoned for commercial recreation,” Maynard told WNPR. “East Windsor’s looking for jobs for its residents, so we’d be happy to have the casino. I think there’s a lot of support.”
The tribes created MMCT Venture as a joint authority that would operate the satellite casino in the north central part of the state to form a bulwark against the $950 million MGM Springfield, which is expected to open in two years. They propose a casino ranging from $200 million to $300 million and up to 2,000 slots.
After the legislature in June 2015 authorized the tribes to seek a site for a casino, without actually authorizing the casino, the tribes formed the jointly operated company MMCT to identify a site for the casino and to operate it for both tribes.
The state’s financial authorities project that the MGM Springfield will drain $68.3 million from the state, with the tribes’ payments to the state declining from $267.3 million in 2018 to $199 million the following year. Each casino pays 25 percent of their revenues to the state.
Another analysis shows that 31 percent of Foxwoods Resort customers and 20 percent of the Mohegan Sun’s customers come from the Bay State.
MMCT spokesman Andrew Doba released a statement recently, “We are fully aware of the negative impact MGM’s facility will have on both jobs and revenue. A hit like this to the state’s bottom line will lead to more cuts to essential social services, and more tough choices for our state leaders. We need to get this right, and make sure that losses of this magnitude never come to fruition.”
Several years ago a study commissioned by the tribes showed that the MGM Springfield could cost the state 9,300 jobs.
MGM has thrown caution to the winds in its efforts to see this from happening, ranging from an aggressive public relations campaign against the process to a federal lawsuit that seeks to have the law that authorized the tribes to search for a site declared unconstitutional.
The ink on the 2015 law was barely dry when MGM sued in federal court alleging that the law violated the Equal Protection Clause of the Constitution as well as the Common Clause by restricting the casino process to the two tribes.
Last week MGM Vice President Alan Feldman said in statement, “As we have been saying for more than a year, if Connecticut wants to maximize job creation and revenue for the state, it needs to open up the process so that it is fair, transparent, and competitive.”
He added, At least one economic report has suggested that a casino in southwestern Connecticut has the potential to generate many more jobs and far more revenue than the number contained in this OFA report.”
And under the unrelenting pressure from MGM some lawmakers are weakening in their resolve to support the tribes. The New London Day in an editorial wrote last week: “Political support in the legislature, we fear, is wavering. It should be a major priority for those elected in November to represent this area in the General Assembly to move the proposal forward.”
The Day’s editorial declared, “MGM has dangled the possibility of the state instead allowing a casino in southwestern Connecticut near New York City, a move meant to divide the legislature by attracting opposition to the Hartford-area plan from legislators in Fairfield County.”
Schaghticoke Tribal Nation
Meanwhile is a separate but related development former U.S. Senator Joseph L. Lieberman will be representing the Schaghticoke Tribal Nation in its $610 million lawsuit against the state of Connecticut to compensate it for 2,000 acres that the state took from the tribe beginning in 1801. The tribe’s reservation was reduced to 400 acres over that period.
What is ironic about this is that when he was in the Senate, Lieberman made the case that the Schaghticoke Tribal Nation wasn’t a legitimate tribe.
In announcing the lawsuit Lieberman addressed his apparent change of heart, “Looking back at what happened 12 years ago, for me, the opportunity to be involved in this litigation on behalf of the Schaghticoke Tribal Nation is what might be called a second chance to do right by them.” He added, “I think over time the history is clear, that they’ve been treated not just unfairly, but grossly unfairly. This gives me an opportunity to do something about that.”
The former senator, who is now a New York resident, has taken the case on a contingency, meaning that he and his law firm, Nix Patterson & Roach, won’t be paid unless the tribe wins or is offered a settlement.
Lieberman was introduced at a press conference by Tribal Chief Richard Velky. “This is not about a casino, OK? This is not about taking lands,” said Velky. “This is about being unconstitutional, what had happened to the Schaghticoke people by the uncompensated lands that were taken from us.”
In explaining why now is different from a dozen years ago, Lieberman said, “The mood, the reality on the ground here in Connecticut is different than it was 12 years ago.” At that time the state feared a proliferation of tribal casinos. “The possibility of a third through the Schaghticokes built on an anxiety the state was going to be covered with casinos.”
The tribe was recognized by the state but not by the federal government. Earlier in 2016 the tribe unsuccessfully sued to be allowed to build a casino in the state. They later withdrew the suit.
Another member of the tribe’s legal team, Austin Tighe, claims that the tribe’s case will be easy to prove. “Fortunately for us, the Schaghticoke have kept meticulous records, and have gone back and looked at the land records from a variety of different counties and townships,” he told WNPR. “We have four pages worth of detailed information.”
The tribe is not seeking to regain any of its lands back, but to be paid the value of the land that was taken—plus interest.
