The Massachusetts Gaming Commission is considering once again delaying awarding the license for the southeastern zone. They reason that a six month delay, from September 23 to March might give enough time for a developer to come out with a proposal for the Fall River/New Bedford area. The original deadline was July.
The panel is also mulling opening the process to new applicants and possibly lowering the minimum investment required from $500 million to something less. The commission has asked its staff to research whether these changes would be legal.
Although three developers have made proposals, none has followed with a host community vote and no host community agreements have been signed.
Two potential developers, the Claremont Companies and the Clairvest Group, asked the commission to consider resetting the application process. Claremont would like to develop its corporate headquarters into a casino, but has already passed the process whereby the commission vets casino developers.
Foxwoods, which originally bombed out with Milford voters in the Boston metro zone, is trying again, this time with a $750 million proposal for Fall River. However, because no agreement between Foxwoods and Fall River has yet been forthcoming, Fall River’s mayor, Will Flanagan, says his city is open to other offers.
Flanagan initially touted the $750 million proposal, but has apparently cooled on it. The mayor said he supports the possibility of the application deadline for the southeastern zone being moved back, a move that he initially opposed.
He told reporters, “I would support the gaming commission extending the timeline to next year and reopen an appropriate procedure to attract new investors.”
He added, “Right now, there are currently only a few able to apply in Region C and (Foxwoods) is having some type of internal conflict and are unable to move forward.”
Reportedly Foxwoods in changing development partners from Crossroads to some other group.
KG Urban has continued to pursue its proposal for a casino along the waterfront at an abandoned power plant, despite a lack of support from the city’s mayor. KG has also failed so far to partner with a casino operator.
Meanwhile, the Mashpee Wampanoag Tribe of Massachusetts has yet to receive a ruling by the Bureau of Indian Affairs on its application to put land into Taunton for its proposed $500 million First Light Resort and Casino.
Until it receives a decision, the tribe cannot go forward with its bid for the license for the southeastern region. It has expected a decision for over a year. The BIA recently published an environmental impact report on the casino. A 2009 U.S. Supreme Court decision that prevents tribes recognized by the federal government after 1934 from putting land into trust is seen as an insurmountable barrier by some to getting a positive decision.
The tribe was recognized in 2007. The gaming expansion act of 2011 gave the tribe a preference in getting the southeastern license as long as it met conditions, such as being able to put the land into trust.
Because the tribe hasn’t yet met those conditions the Massachusetts Gaming Commission opened up the license to commercial bids, which has so far included Foxwoods and K.G. Urban.
Boston Metro
The commission last week also granted the city of Boston and the Mohegan Sun and Steve Wynn an extra week to reach surrounding community agreements for the casinos that the two developers want to build in Revere and Everett, which are adjacent to the city.
Mayor Martin J. Walsh’s office was tightlipped about the progress in the talks so far, except to say, “If and when a deal is reached, we will discuss the terms, but will not characterize the negotiations as they stand now, short of saying that our legal team feels as though an additional week will be helpful as we move forward in these discussions,” while continuing to insist that Boston is, in fact, a “host community,” despite the commission’s ruling otherwise.
In a separate but related development, the Mohegan Sun, which is being sued by its landlord in Palmer, which alleges the Sun didn’t try very hard to win its host community election in November, has lost in its attempt to keep some documents from the public.
Neither Mohegan Sun, nor the company that is suing it, Northeast Realty Associates, will be allowed to designate materials for “attorneys’ eyes only” during discovery. The judge in the case ruled, however, that the parties do not need to provide copies of discovery materials to the gaming commission.
Besides alleging that the Sun did not try to win the election, Northeast alleges that the casino developer violated an exclusivity agreement by going after a license after it had lost its Palmer bid.
The next decision the commission must make is to choose between the competing proposals for Everett and Revere, which includes the Mohegan Sun’s $1.2 billion proposal for Suffolk Downs in Revere and Steve Wynn’s $1.6 billion proposal for a former Monsanto chemical plant in Everett.
The commission is poised to begin hearings on the rival proposals, with the first hearing on June 25.
The Wynn proposal cleared a hurdle last week when the owners of the land that Wynn would buy to build the casino sent a letter affirming that there were no secret partners that would profit from the deal. It was alleged that two convicted felons still had a stake in the land, but the letter confirms that they are no longer involved.
Repeal Casinos
At a recent convention of the Bay State’s Democratic Party, the leader of the state’s anti-casino group, John Ribeiro, found the red carpet rolled out for him, despite the fact that the party was strongly in favor of the 2011 law that authorized three casino resorts and a slots parlor. His group gathered thousands of signatures to repeal the law while at the convention.
Ribeiro gave out “Repeal the Casino Deal” buttons during his visit to the convention. His group recently turned in over 26,000 signatures to put a measure on the ballot that would repeal the 2011 law. That’s more than twice the required number.
Repeal supporters predict that the referendum, if allowed on the November ballot by the Supreme Judicial Court, could become a major electoral issue. The court is expected to rule in July.
The repeal was first rejected by Attorney General Martha Coakley, who contended that it would violate the U.S. Constitution’s “takings clause.” Proponents appealed the decision to the high court.
Ribeiro praised the signature gathering, “Our grassroots supporters statewide have amazed me with their tenacity and drive to meet voters and share our message, always growing our base of support and momentum to repeal this bad casino deal.” He added, “Once these legal and organizing hurdles are behind us, we see a clear path to victory because voters are fed up and know we can do better than casinos for Massachusetts.”
However, in Springfield, many residents resent the repeal efforts. Jeff Ciuffreda, president of Affiliated Chambers of Commerce Greater Springfield, told the Republican, “Downtown Springfield should have shovels in the ground as we speak. The people behind the repeal do not respect the voters of Springfield, and have no answers for our stressed economy and struggling workforce. The gaming act provided our city an opportunity and we seized that opportunity. They are delaying our future and should not be allowed a do-over.”
Penn National Gaming, which has already begun building its slots parlor in Plainville, could be left holding the bag for millions in construction costs should the referendum pass in November.
At the same time the commission is working to license contractors for Springfield and Plainville. So far it has received 70 applications, despite the possibility of the repeal. Penn National has already let more than $20 million in subcontracts. The commission recently awarded the first vendor’s license.
According to Stephen Crosby, chairman of the gaming commission, “Everybody is waiting on tenterhooks,” he said, quoted by the Boston Herald.
Ribeiro dismisses the idea that the referendum threatens to the construction trades by claiming that the region is experiencing a construction boom.
