Foxwoods, which last year lost its bid for a billion casino resort in Milford when 60 percent of the voters rejected it, has resurfaced with its old partner Crossroads Massachusetts and the town of Fall River. Last week Mayor William Flanagan and Foxwoods CEO Scott Butera announced a proposal for a 0 million casino resort.
No details were given. From 30 to 70 acres will have to be identified for the project, he said. He said he would like to see a waterfront site. Butera and Flanagan said they would like to identify a site within 30 days.
Once a site is found, the next step would be to negotiate a community host agreement and submit it to the voters for a vote.
Shortly after the Milford election Crossroads CEO David Nunes and Foxwoods approached Flanagan and said they wanted to talk to him.
The 2011 gaming law gave a preference to the Mashpee Wampanoag tribe, which has signed a compact with the state but has not yet put land in Taunton into trust, as required by the law. Last spring the gaming commission opened up the zone to commercial bids.
So far the only commercial bid has come from KG Urban, which wants to build in New Bedford on the waterfront. However the Claremont Companies has also indicated interest in bidding for a license for Bridgewater.
Fall River is considered to be economically distressed, with an unemployment rate of 12 percent, nearly twice the state average. Casino proposals seem to do better in such towns compared to more prosperous communities. A casino could generate as many as 5,000 jobs in the town, Flanagan said.
“It’s about economic development, it’s about jobs it’s about additional revenue for the city of Fall River,” he said.
Butera added, “The type of resorts that Foxwoods develops and operates are economic engines like nothing else in the world.”
Fall River voters several times have supported a casino in non-binding votes and polls.
Foxwoods has the advantage of having already undergone the financial and ethical vetting by the commission. It says it could break ground as soon as 2015.
At the same time, the Massachusetts Gaming Commission began the final leg of the casino license review process, just as one more player, Foxwoods, entered the fray with an application for the southeast casino zone, which has a later deadline than the other two zones.
MGM Resorts International was the most recent applicant to appear before the board, giving a presentation for its proposed casino in Springfield. MGM is the only developer to survive the process in the Western zone.
Even though it is the only proposal for that zone, having outlasted four rivals, Ameristar MGM is not a lock to get a license. The commission will review it to see if it meets several criteria, including job creation and economic impact.
MGM followed presentations by the Mohegan Sun and Wynn Resorts the day before, vying for the Boston Metro license. Springfield Mayor Domenic Sarno told the commission, “I do appreciate the due diligence of the gaming commission. We are very hopeful we’ll be granted a license so we can get shovels in the ground this spring.” He called the project a “precedent-setting urban development” and a “game changer.” Sarno’s town endorsed the casino proposal last year by a margin of 58 percent to 42 percent.
Local civic and business leaders see the MGM casino as a booster for the local economy, especially MGM’s commitment to spend $50 million on local vendors. They also see it as reviving a broken part of the city that was wrecked by a freak tornado in 2011.
MGM CEO James Murren told the board, “We have the money, we have the experience and we’re ready to go right now.”
Last week MGM announced that Michael Mathis, formerly vice president of Global Gaming Development for MGM’s hospitality division, has been named president and CEO of the Springfield project.
Mathis is very familiar with the project, having taken part in numerous meetings with community leaders and merchants.
Bill Hornbuckle, who has led the Springfield project since 2012, praised Mathis: “Mike has been MGM’s leader in Massachusetts since the beginning of this project and his experience in the Western Massachusetts region provides invaluable insight, and his background and expertise will be instrumental in guiding the MGM Springfield development through the licensing and planning processes, and the eventual opening.”
Boston Metro
The town of Saugus was one of the last of about a dozen communities to petition to be designated a “surrounding community” by both the Revere and Everett casino developers. Saugus notes that it is close to both towns and its traffic and potential loss of retail business would be caused by either development. The town is especially vulnerable to losing state meals taxes if customers begin eating at casino restaurants. Its safety personnel might also be stretched thin by either casino, according to the town.
Suffolk Downs and its partner the Mohegan Sun want to build in Revere. Steve Wynn wants to build a $1.6 billion casino resort in Everett, two miles away. The Mohegan Sun had previously named Boston, Chelsea and Winthrop; Wynn had named Boston and Medford.
Saugus, Everett, Lynn, Malden, Medford, Melrose and Somerville have applied for the designation for the Revere proposal. Chelsea, Lynn Melrose and Somerville have applied for that designation for Everett.
The following communities have reached surrounding community agreements with Suffolk Downs/Mohegan Sun, Cambridge, Chelsea, Lynn, Malden, Medford, Melrose and Salem, with the towns sharing about $3.75 million.
In a related development, the town of Palmer revealed that the Mohegan Sun has paid the town a total $400,000 to compensate it for costs associated with the now defunct casino proposal that the town’s residents turned down in November by fewer than 100 votes. The final payment of about $64,000, was received this month. It included $32,000 for the election itself and about $391,000 in consulting fees.
Suffolk Downs, which will be leasing the land on which the Mohegan Sun’s casino will be built, is hoping that an infusion of cash will help keep racing alive at the venerable 79-year old racetrack. But while that is still up in the air, Suffolk Downs CEO Chip Tuttle announced last week that it would run races this year.
The Mohegan Sun has committed to protecting thoroughbred racing at Suffolk Downs. Mohegan CEO Mitchell Etess, told the gaming commission recently, “Without the revenue from the land lease, the owners of Suffolk Downs cannot continue to sustain their losses.”
The track is required to run 100 races this year.
Slots Parlor
Three companies remain in the hunt for the only slots parlor license that will be granted. They are the Cordish Cos., which proposes a casino in Leominster, Penn National Gaming, which wants to build in Plainville and Raynham Park in Raynham.
The gaming commission is holding a series of community hearings around the state to gather community input on the three proposals.
Cordish proposes to convert an existing 125,000 square foot building into a casino with 1,250 slots, three eateries and a theater. So far it has signed surrounding community agreements with Fitchburg, Sterling, Lunenburg, Princeton, Townsend and Westminster.
Cordish will pay its host community, Leominster, $38 million over a decade and pay each of the surrounding communities about $5000 each year.
The commission will award a license on March 7.
