Authorities in Springfield, Massachusetts are working to bring development through zoning and tax incentives to the city’s South End, near the $960 million MGM Springfield casino. Last week, officials enlisted the help of the Massachusetts Gaming Commission (MGC) in this effort.
Springfield Mayor Domenic J. Sarno supported the casino resort as a way to lift up the South End area of the city, which was ravaged by a freak tornado in 2011. Sarno hoped the to spur business development by hitching a ride on the casino’s traffic.
Now, the city recognizes that the casino alone isn’t enough to rebuild the area. It will have to step in to make locating there more attractive.
Springfield Chief Development Officer Timothy Sheehan told commissioners the city is looking at zoning and special incentives to create a downtown casino impact district that would encourage occupancy of buildings along Main Street. Special-use permits, development guidelines and land-use controls, all tied to fast-track approvals, could be part of the plan.
While conceding that the casino is “vibrant and active,” Sheehan told the MGC, “At this point, it’s clear that the city ultimately needs to be the driver in what the next phase of development needs to be. Ultimately, we really need to galvanize and guide and facilitate the development and investment that happens within that area.”
Commissioners sounded all on-board with the city’s efforts. Commissioner Enrique Zuniga declared, “It’s not hard to imagine the potential on a lot of those buildings you mentioned as foreclosed upon and the neighborhood around it.” Commissioner Gayle Cameron added, “It’s exciting, it really is, to think about what you are trying to accomplish there and what a difference it will make.”
The commission also voted 5-0 to give final approval for MGM Springfield’s proposal to invest $16 million in a $51 million housing project that will help fulfill its previous commitment to provide local housing. The $16 million from MGM is structured as a loan, but a large portion of it includes guaranteed loan funding.
Commission Chairwoman Cathy Judd-Stein praised the collaboration between the casino, state, city and developers. “It’s a testament to the strength of collaboration, innovation and in this case, true vision,” she said. “We are excited to be a part of it.”
In some good news from MGM’s perspective, the casino has exceeded its hiring goals for Springfield residents and minorities. But the total number of employees has fallen to 2,000 workers, or two-thirds the number MGM promised to employ when it was vying for a gaming license. Two months ago, the Springfield Business Journal reported that that MGM’s major rival in the Bay State, Encore Boston Harbor, had dropped 200 employees, and was also about 1,000 below the number of people it told the commission it would employ.
