One year after the groundbreaking ceremony at what would be MGM Springfield, a $950-million casino resort in downtown Springfield, developers are finally ready to rev up construction work on the complex.
The gambling venue was projected to be completed and launched in 2017, thus becoming the first full-scale commercial casino in Massachusetts. However a series of setbacks delayed the project and the luxury complex is now expected to open doors in the fall of 2018. Owner and developer MGM Resorts International is preparing for the first full construction season, more than a year later that initially planned.
Following the groundbreaking ceremony, held on March 24, 2015, the MGM Springfield project was subjected to a comprehensive review by the city’s historic preservation authority related to the razing of old buildings in downtown Springfield.
Later in 2015, MGM Resorts requested from the state permission to launch its complex in September 2018, a month after the planned completion of Interstate 91’s rehabilitation. The Las Vegas casino operator pointed out that if its casino opens in 2017, as originally projected, it would be impacted quite negatively during its first year of operation due to construction work on the nearby highway.
The request was followed by several major design changes the company proposed. The most significant ones were the replacement of the 25-story glass hotel tower with a 6-story building and the reduction in the overall square footage of the hotel and casino resort by 10%. Despite the changes, the project’s cost increased from $800 million to $950 million mainly due to updated material, labor, and administrative costs.
Commenting on what has been done during the first year after groundbreaking, Micheal Mathis, President of MGM Springfield, said that workers have been doing underground utility work and that a number of downtown buildings have already been partially razed or demolished completely to clear the 14.5-acre site where the complex is to be located.
Mr. Mathis said that they are now in preparation for beginning construction work on the first major structure – a parking garage with about 3,400 spaces. The official revealed that 700 constitution workers have been hired so far. A total of 2,000 temporary jobs are to be created during construction and 3,000 permanent jobs when the venue opens doors.
Despite the project’s delay, MGM Resorts has already met part of its financial obligations to the city. It has paid Springfield the amount of $8 million in pre-opening payments in due time. The operator is to pay another $4.5 million later in 2016. One final installment of $4 million is to be made in 2017. Once the gambling venue opens doors, MGM Resorts will have to annually contribute $25 million of its revenue to the city. The state will also receive a share of the proceeds generated by the casino.
