MGM Springfield to become 1st Massachusetts casino as Gaming Commission votes to grant company delayed license

Michael Mathis, sitting left, President of MGM Springfield shakes hands with Massachusetts State Gaming Commission Chairman Steven Crosby after sigining the States' first resort-casino license. Looking on behind them from left to right, Springfield Mayor Domenic J. Sarno, William Hornbuckle, MGM Resorts International President, James Murren, MGM Resorts International Chairman and CEO, and Kevin Kennedy, Springfields' Chief Development Officer. The meeting was held Friday at the MassMutual Center in Springfield. (MARK M.MURRAY / THE REPUBLICAN)

By Robert Rizzuto | rrizzuto@repub.com

SPRINGFIELD — Following a prolonged, expensive and complicated process, MGM Resorts International on Friday became the first company to be

granted a license to open a casino in Massachusetts.

But the official license won't be granted for some time as there is still a chance that the 2011 Expanded Gaming Act, which invited casino companies

into the Commonwealth to do business, could be repealed.

On Friday, the five-person Massachusetts Gaming Commission unanimously voted to enter into an agreement with MGM Springfield designating it the

recipient of the sole Western Mass. casino license under one of two potential timelines. If the Supreme Judicial Court decides a ballot question

repealing the casino law is illegal, MGM gets the license the next day. If the court allows the question to proceed, MGM would be granted the license

the day after the election on Nov. 5, assuming that voters don't vote to kill the law.

Springfield Mayor Domenic Sarno thanked the commission Friday morning for a "transparent" and "thorough" process which brought the first casino

license to Western Mass. "I very much appreciate you all coming out to Springfield many times throughout the process," Sarno told the commission.

"MGM is a world class company. They have been very genuine and humble, and integrated their project with the mosaic of the history of this great city. As we move forward to bring down crime and poverty rates you need jobs. For construction, this will bring thousands of jobs and when open, there are thousands more. This is a win for the city of Springfield and a pivotal time in the city."

As we move forward to bring down crime and poverty rates you need jobs.

For construction, this will bring thousands of jobs and when open, there are thousands

more.

This is a win for the city of Springfield and a pivotal time in the city."

MGM CEO Jim Murren addressed the commission, also thanking them for all

the process that brought them to this point.

MGM Springfield awarded casino license The Massachusetts Gaming Commission signed the States' first resort-casino license Friday during a meeting at the MassMutual Center.

"We are a company that travels and operates around the world and we have a

perspective I think it's important to share. This process has been thoughtful and

thorough," Murren said. "I've never seen a more robust investigative process in my

career. We commend you for that. The application was 7,000 pages long and the

commission pored over every page and challenged us on every assumption. I'm sure

that not only our project but others in the Commonwealth will benefit from that level

of care."

Murren also thanked Sarno and MGM's partner in the project, Paul Picknelly.

"His enthusiasm is infectious. His steadfast support of the city is

unparalleled," Murren said. "He had me early on because if anyone has been

involved in any type of complicated project you need strong partners. Paul is

that partner."

Michael Mathis, MGM Springfield president, said that the company is

grateful for the commission's decision and thankful for the supporters who

helped them get to this point.

"Today’s decision says yes to jobs, yes to downtown revitalization, and yes to

opportunity and hope. We have been, and will continue to be, a committed

partner to the City and the Commonwealth," Mathis said. "We have worked

hard to develop the strong relationships necessary to create a world-class

urban casino resort proposal that will anchor a renaissance for an important

Gateway City and the region around it. We now look forward to that

becoming a reality."

Massachusetts State Gaming Commissioners from left to right, Enrique Zuniga, James McHugh, Bruce Stebbins, Steven Crosby and Gayle Cameron, look on during the press confernce following the signing of the first casino license in the State with MGM Springfield, during a meeting Friday at the MassMutual Center in Springfield. ( MARK M.MURRAY / THE REPUBLICAN )

James Murren, Chairman and CEO of MGM Resorts speaks during a news conference following the signing by the Massachusetts Gaming Commision for the first casino license at the MassMutual Center in Springfield Friday. Behind from left to right Michael Mathis, MGM Springfield President, Edward Pikula, city solicitor, Kevin Kenndy, city chief development officer and Mayor Domenic J. Sarno. (MARK M.MURRAY/THE REPUBLICAN) Mark M. Murray|

mmurray@repub.com

Steve Crosby, the chairman of the commission, said it is

important to note that "we are not advocated of casino gaming,"

but rather stewards of a process laid out by the Legislature.

"This process has embodied the spirit of the governor and the

Legislature when they wrote the law," Crosby said. "We're proud

of that."

When Murren was asked just how MGM intends to compete with

the two already open Connecticut casinos and the New York

casinos being considered, he said that it will be relatively easy

because of MGM's standards.

"We can out-entertain anyone in this industry, and certainly in Connecticut," Murren said. "I feel very confident that given our plan and our

location, we will not only bring the money back to Massachusetts but we'll get some of that Connecticut money up here."

MGM on Wednesday accepted six conditions placed on the

license by the commission, including requirements to:

• Make sure the parking garage and all of the Union Street facades jibe well with already existing structures in the neighborhood, as it does on the Bliss Street side of the site.

• Coordinate with the Massachusetts Department of Transportation, the Trial Court of the Commonwealth and other interested parties to mitigate issues during the construction phase.

• Report to the Massachusetts Gaming Commission once

a general contractor is chosen for the construction of its

$800 million facility

• Report to the gaming commission the general contractor's comprehensive Affirmative Action hiring plan and provide the local MGM affirmative action plan for hiring.

• Report to the gaming commission on any negotiated leases with local and regional businesses regarding them renting space within the MGM entertainment complex.

• Report to the gaming commission on the number of Springfield employees which have been hired to make up the 35 percent pledge as outlined in the Host Community Agreement.

People on hand watch the Massachusetts State Gaming Commission sign the States' first resort-casino license Friday at the MassMutual Center in Springfield. ( MARK M.MURRAY / THE REPUBLICAN )

But the company's concern remained with the $85 million licensing fee which must be paid within 30 days of receiving the license, and

potentially losing several other costs associated with moving the project forward.

Mathis has said that if the Supreme Judicial Court allows the ballot question to proceed, it will delay construction on its estimated $825 million

casino on 14.5 acres in Springfield's South End and provoke the company into a marketing campaign to again win the votes of the citizens of

the Commonwealth.

Springfield Mayor Domenic J. Sarno addresses the Massachusetts State Gaming Commission as they prepared to sign the States' first resort-casino license Friday at the MassMutual Center in Springfield. (MARK M.MURRAY/THE REPUBLICAN)

Sarno said that if the ballot question is allowed to proceed, the city will partner

with MGM to "make sure the public is educated as to the economic benefits of this

project."

Murren said he doesn't feel the ballot question should proceed since the law is

settled, but that if it does, MGM will once again fight to win the hearts and minds

of not just the citizens of the city, but across the Commonwealth.

"You've withstood so many challenges here in Springfield and with that tragedy of

the tornado comes an opportunity for rebirth and renewal," Murren said. "We look

forward to welcoming 3,000 new employees to the MGM family."

The group pursuing the ballot question repealing the gaming law, Repeal the

Casino Deal, has been busy collecting the additional 11,485 signatures needed to

maintain its viability since the Legislature didn't act on it by the first Wednesday

of May, in accordance with state law.

The chairman of the group, John Ribeiro, said earlier this week that their efforts

will continue. "The Gaming Commission may approve of the MGM casino after

this Soviet-style voting with one applicant but we are confident the people do not

and the people’s voices can and should be heard," Riberio said.

Since Crosby's arrival at the meeting on Friday was delayed by car troubles on the MassPike, a reporter asked him if he thought the incident

happening on Friday the 13th ahead of licensing was a bad sign.

"We got all the bad luck out of the way early," Crosby said.

MGM Springfield, following the vote on Friday, held an appreciation luncheon for supporters as both pro and anti-casino folks await a

decision by the state's highest court, which is slated to be handed down by July 9 at the latest.

Attendees from Fitzgerald Attorneys at Law, P.C.

Photo courtesy of Ed Cohen Photography. All rights reserved.

This artist rendering shows the proposed hotel tower of the $800 million MGM Springfield casino the company aims to build on 14.5 acres of land in the South End of the city.

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