It seems that Boston Mayor Martin J. Walsh and Wynn Resorts founder Steve Wynn have eventually decided to stop bickering over the construction of a $1.7-billion luxury casino resort in Everett and the negative effects it may have on the area.
The two parties announced on Wednesday evening that an agreement has been reached, under the terms of which Wynn Resorts will pay Boston the additional amount of $6 million over the next 15 years. In exchange, the city will drop all legal filings against the gambling operator and will no longer initiate such efforts to prevent the multi-million-dollar complex from being established.
More than two years ago, when the Massachusetts Gaming Commission and Wynn Resorts inked their deal, the casino company agreed to annually contribute $1.6 million to Boston so as to offset the impact its venue will have on the area. Under the newly reached agreement, the operator will pay $2 million per year for the 15-year term of the deal.
Under the original compensation package, Wynn Resorts agreed to spend $25 million on a long-term plan for finding an effective solution for traffic alleviation in Sullivan Square, known to be among the worst bottlenecks not only in the region but in the state as a whole.
In addition, the new deal calls for the gambling giant to pay Boston the amount of $750,000 so as to defray legal and other costs related to the negotiations that resulted in the Wednesday deal. The city will also receive an upfront payment of $1 million.
Boston officials agreed to remove a provision that was contained in the old pact and that required Wynn Resorts to pay a penalty of $20 million provided that traffic to the Everett casino exceeds particular levels. Under the new deal, the gambling operator will be required to address the issue in a timely manner and with a list of improvements instead.
Under its original agreement with the state gambling commission, Wynn Resorts will have to hand over 25% of the revenue its casino generates in state taxes. It will also have to make upfront payment of $30 million and annual real estate taxes of $25 million to Everett.
The Las Vegas-headquartered gambling giant is planning to build a 24-floor curved tower complex on the city’s waterfront. Its construction is expected to create 4,000 temporary jobs and more than 4,000 permanent ones. Once fully operational, the venue is projected to generate state taxes of more than $200 million.
However, the venue will be located in an urban area that has already been facing serious traffic issues and has been trying to cope with those for years. Commenting on his decision to eventually sign an agreement with Mr. Wynn, Mayor Walsh said that he is well-aware of the fact that casino opponents will be upset with him. However, Boston’s top official noted that the casino resort will bring numerous benefits to local community and will provide millions of dollars for long-term solutions for the traffic issues on Sullivan Square and other heavily congested spots in the region.
