Officials for MGM Springfield presented on Thursday the Massachusetts Gaming Commission with details about the proposed changes to the $950-million hotel and casino resort the gambling operator is building in downtown Springfield.
The said modifications include the replacement of a 25-story glass hotel tower with a 6-story structure and a 9% reduction in the project’s overall square footage. MGM Springfield officials told MassGaming Chairman Steve Crosby and the four commissioners that if approved, the said changes would boost efficiency, meet customer demands, and remove unnecessary space.
Seth Stratton, Vice President and General Counsel of MGM Springfield, also provided state gambling officials with more information about the $150-million increase in costs. According to the initial plan, the construction of the MGM Springfield casino resort would have cost $800 million. Following the design changes and other related matters, the gambling operator is now expected to spend an approximate of $950 million.
Mr. Stratton explained that the costs include $614 million for construction and furnishings, and more than $335 million for various land improvements, application and license fees, host community agreements, and many more.
During the Thursday meeting, Commissioner Enrique Zuniga said that the increase in costs was a serious matter and that he expected more comprehensive information about it. Mr. Stratton promised that the state gambling regulator would be provided with the necessary details in a timely manner. Chairman Crosby also expressed concerns about the increased project costs. Yet, the official admitted that the proposed design changes have not had any negative effect on the very heart of the casino plan.
Michael Mathis, President of MGM Springfield, told commissioners that every proposed casino project undergoes certain modifications while being built. He added that the changes in MGM Springfield’s design should not be considered an exception but a norm.
Commenting on the reduced square footage, MGM Springfield officials once again explained that it included a 7% reduction in back-of-the-house space and a 2.15% one in the hotel’s square footage.
As for the replacement of the 25-story glass hotel tower with a 6-story hotel building, MGM Springfield Vice President of Construction Brian Packer noted that this significant modification increased non-public areas’ efficiency as the structure would need fewer elevators and no stairwells.
The meeting with the Massachusetts Gaming Commission was followed by a public hearing, during which officials and residents of Springfield were given the opportunity to voice their opinion on the project and the proposed changes. Generally speaking, the support for the casino was mixed.
City officials noted that a vote on the changes would take place later in December and that they will work closely together with MGM Springfield in order to reach an agreement that would be beneficial to Springfield and its residents.
