“We fought the good fight, but at the end of the day, the judge dismissed our lawsuit,” lamented Boston Mayor Martin Walsh, announcing that he was dropping his fight against the Wynn Everett.
After months and years of bitter wrangling, lawsuits and recriminations Steve Wynn and Walsh have patched up their differences and the mayor has dropped his opposition to the $1.7 billion casino on the other side of the Mystic River, in Everett. In return, Wynn has promised to sweeten the deal by paying Boston a little more than what the Massachusetts Gaming Commission had already required.
Wynn will pay $6 million extra over the next 15 years.
Boston will drop all of its legal challenges to the Wynn Everett, not hard to do since Suffolk Superior Court Judge Janet Sanders had in December already summarily dismissed the lawsuit, characterizing Boston’s efforts as “inflammatory “spurious” claims and said they used “hyperbole” that “tend only to obscure the factual allegations.”
The city spent $1.9 million in legal fees fighting the casino in neighboring city. The 24-story Wynn Everett is projected to create 4,000 temporary construction jobs, 4,000 permanent jobs and pay $200 million in taxes to the state. It is expected to open in 2018.
As is often the case in politics and legal battles, the two antagonists, after pounding on each other for years with accusations of corruption on one hand and threats of defamation lawsuits on the other, now promise to cooperate fully in dealing with the challenge of addressing congestion in Sullivan Square, in the Charlestown neighborhood of the city.
After fighting down to the wire and beyond, the mayor conceded that some residents in Charlestown might be unhappy with him for negotiating a settlement, but argued that the benefits the city will accrue from cutting a deal will ultimately benefit the area. These include grants from Wynn to youth groups and art programs.
Wynn Resorts released a statement this week announcing that it was “eager to turn the page in our relationship with the City of Boston and begin a new chapter that will culminate with a beautiful, five-star resort overlooking Boston Harbor. Our agreement will unlock economic development and jobs for the entire region.”
Two years ago, when Walsh was still insisting that the city be granted all of the rights of a host community—although the casino wasn’t being built within its borders—the state gaming commission required that Wynn agree to pay $1.6 million annually to the city as part of a surrounding community agreement, plus $25 million to help alleviate traffic in Sullivan Square. Walsh refused to sign on then, but the money was put into an escrow account. Now Walsh has agreed to that, plus the additional cash payments of $400,000 annually.
In return the city has dropped a requirement that would have penalized the developer with hefty fines if traffic exceeded certain levels. It has been replaced by requirements that Wynn employ various strategies, such as recalibrating traffic signals, to tweak traffic congestion.
Also in the works is a possible park on city-owned land next to the casino—which Wynn would finance. Wynn may also pay for removing a sludge management facility from next to the casino.
The two antagonists saw a way towards rapprochement last autumn when the two dismissed their aides from their negotiations and spoke man-to-man, with both reminiscing about their mutual boyhoods in Boston.
Although they aren’t yet at the point of calling each other “Marty” and “Steve” they appear to have push their old war into the past.
The mayor announced, “We don’t want to look at the past. We agreed: Let’s try to move forward. We’ve both put the past behind us.”
The commission greeted the news of the peace agreement warmly: “The Commission looks forward to reviewing the details of the agreement and views this development as significant progress toward the awaiting jobs and economic development for the Eastern Mass region,” said a released statement.
Not so warm was the reaction by state Attorney General Maura Healey, a vocal critic of gaming in the Bay State, calling them “bad economic policy,” who previously said that she wanted to make sure that Sullivan Square is not neglected by any deal between Wynn and Walsh.
The Charlestown resident told the Boston Herald, “I haven’t seen all the details. I will tell you I remain, and our office will remain focused on the need for a long-term traffic solution for Sullivan Square and that region. We continue to press for that because it is a matter that’s fundamentally important.”
Healey previously unsuccessfully tried to persuade state environmental regulators to deny Wynn a permit unless Sullivan Square was addressed.
She told the Herald, “It requires focused attention on what the current situation is and what the current needs are— and then what the reality is in terms of what we are facing with new projects and new development in that region.”
Plainridge Park
Meanwhile Timothy Wilmott, chief executive officer of Penn National Gaming, insisted recently that Plainridge Park slots parlor in Plainville is not underperforming despite declining revenues each month since it opened in June. He decried the “overly negative” coverage by the media.
The casino revenues peaked at July, when it took in $18.1 million. It made $11.3 million in December. Such declines are common after a “robust opening,” insisted the CEO. He noted that Plainridge is one of the best performing of all of Penn’s 27 casinos.
The casino did get some good news recently, a LEED Gold certification by the U.S. Green Building Council (USGBC). The certification goes to buildings that are designed, built and maintained for improved environmental and human health performance. The casino was recognized for water savings, energy efficiency and indoor environmental quality, among other factors.
MGM Springfield
Following several meetings where the Springfield City Council heard about plan changes from MGM for the $950 million MGM Springfield, the members are ready to devote a hearing to concerns that have been made by adjacent property owners to the casino resort, which is planned for 14.5 acres.
Council President Michael Fenton said the purpose of the hearing is to “continue its in-depth review of the plans, particularly in light of testimony from the public and abutters.”
Some of those concerns include traffic hazards, congestion and the impact of casino traffic on existing business’ tenants and customers.
One neighbor complains that in the original plans MGM proposed to widen a section of East Columbus Avenue and add a turning lane, only to eliminate the turning from the succeeding plan. The city says that the widened avenue will be sufficient.
Other property owners worry that casino customers will use their parking lots.
The owner of Pride Stores, a nearby business, says the plan changes will cause “a traffic nightmare,” at a nearby intersection.
In a related development, both Wynn Resort Ltd. and MGM Resorts International were rated as having “generally good liquidity” by Fitch Ratings Inc.
In a report issued last week Fitch wrote, “We do not anticipate any major liquidity-driven defaults in the near term despite the weakened state of the U.S. high-yield market,” the ratings agency said in a report on Friday.” It added, “Issuers with the biggest development pipelines, notably Wynn Resorts and MGM International, have pre-funded their needs.”
Both Wynn and MGM have large projects in the works in China, projects that somewhat dwarf the ones they are contemplating in Massachusetts.
MGM’s casino resort on Cotai has a price tag of $3.1 billion. It is expected to open the fourth quarter of this year. This compares to $950 million for the Springfield project.
