SPRINGFIELD, Mass., May 1, 2013 /PRNewswire/ -- With pen to paper, and after almost two and a half months of negotiations, MGM Resorts International (NYSE: MGM) and the City of Springfield today marked the signing of a Host Community Agreement ("HCA") that incorporates more than $25 million in annual payments for Springfield should MGM win the Western Massachusetts operator's license.
At a ceremony this morning at the MassMutual Center, MGM Resorts and MGM Springfield President Bill Hornbuckle signed the agreement for MGM and Springfield Mayor Domenic J. Sarno signed a transmittal letter that accompanied the HCA to the Springfield City Council for its review.
Required under the 2011 Massachusetts gaming law, an HCA is a comprehensive document that determines the conditions for locating a gaming establishment in a community.
The HCA calls for MGM Resorts to make upfront and advance payments, totaling $15 million to the City of Springfield. The upfront payment will be distributed to the city in installments during the construction phase of the project. When MGM Springfield opens for business, the city will receive in excess of $25 million annually in payments.Hornbuckle said, "MGM Resorts is very grateful to Mayor Sarno and his team for the confidence they have placed in MGM and for providing a respectful, rigorous and responsible process that led us to this day. We are happy to celebrate this milestone today, but we remain keenly aware that there is more work to do. We look forward to the continued dialogue and engagement with city officials and residents." Mayor Sarno offered, "We have negotiated an agreement in which the citizens of Springfield are the winners. This has been a long and thorough process. MGM rolled up its sleeves and is ready to provide the city with a great opportunity for a brighter and stronger future. I urge the City Council to consider and ratify this encompassing agreement." HCA Highlights
- Upfront and advance payments, totaling $15 million to the City of Springfield during the construction phase including pre-payment of taxes for general city purposes as well as:
- $2.5 million to purchase equipment and to provide training for police, firefighters and emergency medical services personnel.
- $1 million to redevelop Riverfront Park.
- More than $25 million in annual payments once a proposed casino has opened for business. This includes tax payments as well as:
- $2.5 million to fund operating and other costs for police, firefighters, emergency medical services and education.
- $2.5 million for a Community Development Fund to be administered by the city to support early childhood education, higher education, libraries, health initiatives, and the betterment of the city and its residents.
- MGM Springfield will use its best effort to ensure that at least $50 million of its annual biddable goods and services will be prioritized for local procurement.
- Hiring preference given to Springfield residents with a total of 3,000 permanent jobs and 2,000 construction jobs.
- Commitments to local educational institutions for training and workforce development, as well as programs to assist, minority, disabled and the chronically unemployed and underemployed.
- MGM will underwrite, co-promote, book and schedule 12 entertainment events per year and spread them across MassMutual Center and Arena, Symphony Hall and City Stage.
- MGM will fund all traffic improvements described in its traffic study and in accordance with the Massachusetts Department of Transportation.