MGM: expect more changes

Oct. 22, 2015 | G. Michael Dobbs
news@thereminder.com

MGM Springfield President Michael Mathis answered press questions on Oct. 20 after announcing there would be a reduction in the square footage of the casino buildings.
Reminder Publications photo by G. Michael Dobbs

SPRINGFIELD – MGM Springfield President Michael Mathis described a reduction of about 14 percent of the square footage of the MGM Springfield campus as being a “tweak” and added people should be prepared for more changes as the project progresses.

Mathis said he could predict there “will continue to be changes. You can’t build a 100 million-square-foot structure without changes.”

Mathis’ comments came about an hour after those of Mayor Domenic Sarno on Oct. 20 who said he not only hadn’t heard about the changes from Mathis, but that in meeting with MGM Resorts International President William Hornbuckle two weeks ago the changes were not mentioned.

Sarno said he thought the men had a “frank discussion” and said he found it “incomprehensible” that Hornbuckle and Mathis would not have told him about the additional alterations to the plan when they were telling him about the hotel and apartment changes.

Sarno promised he would not approve any changes to the casino plan as it stands if it meant a decrease in jobs or revenue to the city. The mayor added he had spoken with Massachusetts Gaming Commission (MGC) Chair Stephen Crosby who told him “deference would be shown to the city” in the approvals the commission would give the new plan.

Under the Host Community Agreement (HCA), Sarno, the City Council and the Gaming Commission must all approve of any changes.

Mathis said he would be meeting with Sarno within the next three days.

Sarno said he instructed City Solicitor Edward Pikula to write a letter to MGM with the following request: “We are requesting that MGM Springfield submit to the City a written schedule setting forth: 1) the reason for each proposed design change; 2) an explanation as to how each proposed design change is in material compliance with MGM Springfield’s obligations under the HCA; and 3) an analysis of the impact of the proposed changes on the obligations of MGM Springfield and MGM Resorts under the HCA, including but not limited to, the creation of 2,000 construction jobs and 3,000 operational jobs, as well as any revenue obligations or projections, set forth in the HCA or the gaming license issued by the MGC.”

What would be under consideration are increases and decreases to various aspects of the casino. According to the report filed by MGM with the Executive Office of Energy & Environmental Affairs dated Oct. 15, the revisions are “minor changes to the programmed uses and their location within the project’s buildings.”

Approval of the report by the state environmental officials is essential for the project to move forward, Kennedy explained.

Mathis said that about 90 percent of the reductions would be focused on the “back-of-the-house” space.

The gross square footage of structure went from 881,691 square feet to 759,157 square feet, a change of 122,534 square feet.

The report read, “Reduction in gaming positions and back-of-house: Although the square footage (sf) of the gaming space remains fairly consistent with the site plan contained within the Final Environment Impact Report (FEIR) the number of gaming positions has been reduced by approximately 164 positions and the back-of-house space has been reduced by approximately 68,000 sf within the casino block to accommodate the redesign and relocation of the hotel.
“Reduction in Armory Retail Block development: The size of several uses within the Armory Retail Block will be reduced as compared to the site plan contained within the FEIR, including an approximately 26,800 sf reduction in retail space, an approximately 8,200 sf reduction in the size of the bowling alley, and an approximately 10,400 sf reduction in the size of the cinema. These reductions will be partially offset by an increase in food and beverage space and the addition of an approximately 1,300 sf arcade within the Armory Retail Block.”

Mathis explained that in the case of the movie theater the company with which MGM is working made the revision in size. He said the theater would still have eight to 10 screens as originally described.

He said that even with a reduction in retail, there would be “much more retail than currently in downtown.”

Mathis noted there would be no change in office space in the complex, as both 95 State St. and 101 State St. would be preserved.

There is a sizable decrease in retail, though, from 42,854 square feet to 16,046 square feet, an amount that is of concern to the city’s Chief Development Officer Kevin Kennedy. Kennedy said the retail reduction is one of 10 items he and Sarno want to address with MGM.

Mathis said the reason the report noted there would be a decrease of 1,100 cars coming to the casino daily was due largely to employees parking off-site, although he admitted there would be some consumers in that number, as well.

Mathis repeated his and his company’s commitment to the casino project.

He said the company will continue to build “the best project it can be.”

Sarno said he is “very disappointed in the non-communication that occurred.”

Mathis said he would apologize to the mayor and said that in light of the major changes of the hotel and apartments, it did not occur to either him or Hornbuckle to bring up these reductions and increases.

He called the alterations as “a natural part of the process.” He added the potential increased competition from a third casino in Connecticut “had no impact on our development team.”

City Council President Michael Fenton told Reminder Publications, “I wasn’t expressly aware of the 14 percent reduction but I expect these are the type of announcements that would come in the wake of the elimination of the tower [hotel].”

The news provided an additional issue in the city’s mayoral race with both of Sarno’s challengers blaming him for the latest development.

Salvatore Circosta said, “I am usually not at a loss for words, but this takes the cake, what’s next? This is a direct reflection on Sarno, that MGM doesn’t have confidence in our economic development plans and public safety around the proposed casino, and throughout Springfield. I don’t blame them, our mayor has done little to make us feel safe in Springfield or attract tourists and visitors to Springfield. We are in a desperate situation. Springfield needs a new vision and a new leader with a fresh approach more now than ever.”
    Write-in candidate Michael Jones said, “The man of the casino, our mayor, has squandered any possibility of saving face. The small businesses and persons displaced by MGM is a travesty. A city torn, a lack of communication between government, corporations and citizen. What are we to do? It's time for a new mayor.”

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