MGM to invest $11 million in the redevelopment of a historic hotel in downtown Springfield into an apartment building
MGM Resorts International told the Massachusetts Gaming Commission Thursday that it has finally selected a housing development project to invest into as part of the terms of its gaming license in the state and its community agreement with the city of Springfield, WAMC reported.
MGM plans to pour $11 million into a $55 million scheme for the redevelopment of a historic hotel building on Court Square in downtown Springfield. The building has been vacant for more than three decades.
Under the terms of its agreement with the host community of its $960 million MGM Springfield casino resort, MGM is required to built at least 54 market-rate apartments in the city. The Las Vegas gaming and hospitality looked for a suitable project to invest into for several years and was granted several deadline extensions from city and state officials.
The latest such extension gave MGM until Thursday, March 28 to either confirm its commitment to the Court Square project or select another housing development plan for downtown Springfield to participate in.
MGM Springfield Vice President and legal counsel Seth Stratton told commissioners Thursday that they conducted a year-long due diligence and that they felt comfortable investing in the Court Square plan and were confident into its success.
The Court Square Scheme
The Court Square or 31 Elm Street project involves the redevelopment and transformation of an old hotel into an apartment building with about 60 apartments that would be offered at market rates and 14 apartments that would be rented at reduced prices to interested tenants whose income is 80% of the median income in the region.
Under its host community agreement with Springfield and the terms of its Massachusetts gaming license, MGM is obligated to build at least 54 market-rate apartments in downtown Springfield.
The 31 Elm Street building was constructed in the early 1890s and has been transformed and repurposed several times throughout the years. It operated as a hotel until the 1950s when it was shuttered. It then reopened as an office building but has then been vacant for more than 30 years. The Springfield Redevelopment Authority has owned the historic building since 2009.
Boston-based developer WinnCompanies is spearheading the project. The company said during a meeting of the Springfield Casino Oversight Committee last month that it had secured 90% of the money needed to finance and complete the project.
State gambling regulators welcomed MGM’s announcement to invest in the redevelopment of the historic building. Commissioner Bruce Stebbins said that the redevelopment of the six-story vacant hotel was an elusive goal for years and that it is still “a little early to blow the trumpets and horns,” even though it seems that the plan has secured the necessary funds.
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