MGM Springfield officials said on Tuesday that they will discuss thoroughly their $800-million casino project as well as the Interstate 91 rehabilitation plan at the next meeting of the Massachusetts Gaming Commission, which is set to take place on June 25.
Carole Brennan, spokeswoman for MGM Springfield, revealed that the gambling operator has met the state Department of Transportation in order to discuss the status of both projects. Ms. Brennan also pointed out that MGM considers the coordination of the two endeavors an important part of the completion of the casino resort.
The casino operator broke ground on the property back in March, although it had planned to start construction last November. However, certain historic preservation issues delayed the start of the project.
Under a Host Community Agreement between Springfield and MGM, the company should not take more than 33 months from licensing to complete its venue. In other words, the casino resort should open doors before September 2017. If it does not comply with the agreement, MGM will have to pay a certain penalty, which has not been specified yet.
Recently, it was announced that neighboring Connecticut is to have its new fully-fledged casino, run by the state’s two federally recognized tribes. Rumor has is that MGM Springfield will cut the initially announced investment of $800 million to about $500 million, which is the minimum investment required by Massachusetts law.
Jim Murren, Chief Executive Officer of MGM Resorts, commented that there was no such thing and the operator would fulfill its original promise.
According to the latest information, MGM Springfield is expected to create more than 2,000 construction jobs and at least 3,000 permanent ones when the venue is opened.
However, City Solicitor Edward M. Pikula said in a Tuesday statement that although the gambling operator seems keen on coordinating the launch of its casino with the completion of the Interstate 91 viaduct reconstruction in the central part of Springfield, this might have some unpleasant consequences for MGM.
According to the initial plan and under the Host Community Agreement, the casino resort is to open doors late in 2017. However, the Interstate 91 project is set to be completed no earlier than February 2018.
Mr. Pikula added in his statement that the city is willing to discuss with MGM the possibility for certain changes to be made in the Host Community Agreement so that the operator coordinates the opening of the property with the completion of the highway.
An MGM official noted that the company has 33 months to complete the casino resort and another 6 months to commence operations. In other words, a penalty could not occur before the end of the latter 6-month period and the launch of the property could possibly be delayed so as to coincide with the completion of the Interstate 91 project.
MGM is also yet to submit the final plans for its resort to the City Council. The latter needs to thoroughly review and approve those. As mentioned above, work has already started on the casino site, including utility work, fencing, etc.
