The casino bidding landscape in Southeastern Massachusetts came sharply into focus last week as one of the three bidders obtained needed financing.
KG Urban has secured financing from Gaming and Leisure Properties, based in Pennsylvania, to allow it to go forward with a $650 million casino proposal in New Bedford. It has also added former Foxwoods CEO Scott Butera as partner. Butera headed Foxwoods until last October.
The casino, dubbed Cannon Street Station, would include a 300-room hotel, dining, retail shopping, a conference center and recreational marina. The design calls for retaining the existing smokestack of the old Gas & Edison Light Complex building.
Gaming and Leisure Senior Vice President Steven Snyder sent a letter to the Massachusetts Gaming Commission that said, in part, “With its glass casino on the wharf boasting 180-degree views of the harbor and its proximity to the New Bedford commercial fleet, the Buzzard Bay hurricane barrier, State Pier, Cape Cod, Martha’s Vineyard, Nantucket, KG Urban’s Cannon Street property will create a gaming and resort experience unique not only in the Commonwealth but in the entire country.”
His company, a subsidiary of Penn National Gaming, operates properties in Illinois, Maine, Maryland, Ohio and Louisiana.
KG Urban came under the wire to meet the Monday deadline to submit financial and organizational materials to the commission. Besides the casino, the project includes paying the city $4.5 million upfront and $12.5 million annually. The developer also agreed to rehabilitate the 11-acre former power plant site for $50 million and create a $10 million harbor-walk along the waterfront.
Voters will give their verdict on the agreement in a citywide election June 23.
According to City Council president Brian Gomes, “This will bring jobs to the city, it will clean up a contaminated site and it will put us on the map. We are the ideal location.”
Council member David Alves agrees. In arguing for why the commission will award the license to his city, he said, “We’re in a premier position as a gateway community with the highest unemployment rate, and more than $50 million to be used in an environmental cleanup.”
KG Urban’s rival, Mass Gaming & Entertainment, a subsidiary of Rush Street Gaming, proposes a $650 million casino resort on 45 acres amidst the Brockton Fairgrounds. It had previously completed its Phase I submission to the commission, which has deemed it to be “substantially” complete.
A host community agreement election has been scheduled for May 12 in Brockton. If it is approved then the developer will be committed to pay $3 million upfront and $10 million every year after the casino opens. George Carney owns the Brockton fairgrounds.
The third leg in the triumvirate, Crossroads Massachusetts, seems less secure since Crossroads had previously asked for an extension to submit its Phase I proposal for the town of Somerset. The commission has yet to rule on the request, which is the third this year from Crossroads. In March, when it granted another extension, commissioners seemed less willing to do so again.
Crossroads Massachusetts previously partnered with Foxwoods in an unsuccessfully bid in Milford that voters rejected two years ago. It hopes to build on land owned by the city.
The commission hopes to issue a license later this year.
Springfield MGM
The city of Springfield’s Department of Public Works has issued permits utility work for the $800 million MGM Springfield site. According to a release by the city this will allow for “significant ramping up of construction activities through the spring and summer.” This will allow for terminating utilities that serve buildings that are on the block to be demolished to make way for the casino, and to reroute, upgrade and relocate other utilizes.
According to the city’s director of public works, Christopher Cignoli, “Based upon our meeting with the MGM Springfield development team, its contractors, and all of the area utility companies, there will be a significant amount of work occurring in the next 4-6 months in and along Main St, Union St, East Columbus Avenue and State Street.” He promised to try to minimize the impacts on the public.
MGM says it plans to open its casino in 2017.
Slots Parlor
Plainridge Park Casino in Plainville will be the first of the Bay State casinos to open. The only slots only casino in the state, it is scheduled for a June 24 debut.
