This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MGM Resorts And Mayor Sarno Sign Host Community Agreement, Transmittal Letter

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.

The Mayor's Office released a summary of the HCA yesterday when Mayor Sarno appeared with his Advisory Committee to announce that he had chosen MGM Springfield to move forward as the sole casino operator representing the City of Springfield as it continues its quest to bring a world-class casino resort and entertainment district to Downtown Springfield.

The HCA further requires the approval of the City Council before MGM Resorts may request a referendum, also required for advancement. If approved by Council in mid-May, MGM Springfield and City officials anticipate a mid-July referendum.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,071.50 +20.75 0.12%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,823.4610 +12.6730 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs