SPRINGFIELD, Mass.,
June 13, 2014 /PRNewswire/
-- MGM Resorts International (NYSE: MGM) today received a
unanimous vote from the Massachusetts Gaming Commission (MGC)
approving an agreement to award MGM Springfield a license to
operate a resort casino in Downtown
Springfield. This is the first approval of a casino license
in the Commonwealth. The Commission's decision comes after an
extensive two-year process of hearings and background
investigations culminating in a final week of hearings and
deliberations.
MGM formally announced its interest in a resort casino in
Springfield in August 2012. At one time there was a field of
five companies vying for the sole Western
Massachusetts casino license. The MGM Springfield site is
located on approximately 14.5 acres of land between Union and State
streets, and Columbus Avenue and Main Street.
Jim Murren, Chairman and CEO of
MGM Resorts, said: "This is a great day for Springfield, the Commonwealth of Massachusetts and MGM. We're proud of what our
talented team and our many dedicated city and community partners
have accomplished together. We thank the Massachusetts Gaming
Commission for its thorough vetting process and look forward to
continuing our work with Springfield Mayor Domenic Sarno and other Springfield and Western Massachusetts elected officials and
governmental leaders, along with residents and businesses of
Springfield and the region, as we
move this project forward."
Murren was joined by MGM Resorts President Bill Hornbuckle and MGM Springfield President
Michael Mathis for today's decision
at the MassMutual Center. The crowd gathered included elected
officials; civic, business and community leaders; and MGM
Springfield supporters.
MGM Springfield, an $800 million
investment, is designed to ignite an urban revival. MGM and its
professional partners worked painstakingly to put together a design
that celebrates the history of Springfield while moving the Gateway City into
a new era of commerce and economic opportunity.
The integrated resort casino is designed to enhance the entire
urban center of Springfield. The mixed-used development
project calls for a 25-story 250-room hotel with world-class
amenities including a spa, pool and roof deck; 125,000 square feet
of gaming space with 3,000 slot machines, 75 gaming tables, a poker
room and high limit VIP gambling area; about 55,000 square feet of
retail and restaurant space that will accommodate 15 shops and
restaurants; and a multi-level parking garage.
Plans also envision a high-energy dining, retail and
entertainment district with an eight-screen cinema, bowling alley
and an outdoor stage. This will be developed by Davenport
Properties of Boston, MA, in
partnership with MGM on land now occupied by the tornado-ravaged
South End Community Center and Howard
Street School.
Michael Mathis, MGM Springfield
President, said, "MGM is very grateful to the MGC and most
importantly to our supporters. 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. 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."
MGM Springfield will bring 3,000 permanent jobs and 2,000
construction jobs to Downtown Springfield. MGM has
established a hiring goal of 35 percent of the workforce from the
City of Springfield and 90 percent
from a combination of Springfield
and the region. Additionally, MGM Springfield has entered into
surrounding community agreements with neighboring communities
providing for tens of millions of dollars.
Mathis added, "The City of
Springfield deserves a brighter economic future. Its
residents spoke loudly when they voted yes for MGM Springfield in a
July 2013 referendum. A successful
repeal would mean the loss of good jobs, new economic development
and a needed revenue stream. It would also eliminate the
opportunity to recapture billions of dollars currently lost to
neighboring states. MGM is ready to help the Commonwealth achieve
these worthy goals."
All casino projects in the Commonwealth still face the threat of
a ballot repeal of the casino law. Attorney General Martha Coakley ruled last year that the repeal
question was unconstitutional. Following an appeal by advocates of
the repeal effort, the Supreme Judicial Court is expected to decide
by July if the question may appear on the November ballot.
Because the repeal effort hangs in the balance, the MGC and MGM
entered into an agreement to award the single Category 1
(resort-casino) license available for Region B (Western Massachusetts) contingent on the
outcome of the repeal matter. The future date allows the
postponement of the licensing and related fees until the repeal
question is resolved.
About MGM Resorts International (NYSE:MGM)
MGM Resorts
International (NYSE: MGM) is one of the world's leading global
hospitality companies, operating destination resort brands
including Bellagio, MGM Grand, Mandalay Bay and The Mirage.
The Company also owns 51 percent of MGM China Holdings Limited,
which owns the MGM Macau resort and casino and is in the process of
developing a gaming resort in Cotai, and 50 percent of CityCenter
in Las Vegas, which features ARIA
resort and casino.
For more information about the company please visit
www.mgmresorts.com.
MGM SPRINGFIELD FACT
SHEET
MILESTONE TIMELINE
- August 22,
2012 – MGM announced interest in Springfield.
- April 30,
2013 - MGM was chosen by Springfield to partner with the city, beating
out Penn National and Ameristar. At one time there was a field of
five companies vying for the sole Western
Massachusetts casino license. Hard Rock lost its referendum
in West Springfield and Mohegan
Sun lost its in Palmer.
- May 1,
2013 - MGM Resorts International and the City of Springfield signed the Host Community
Agreement ("HCA") that 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.
- July 16,
2013 - Springfield
voters braved steamy temperatures to go to the polls and approve
MGM Springfield in a referendum vote (58% to 42%) to develop and
operate a resort casino in Downtown
Springfield.
- December 23,
2013 - the Massachusetts Gaming Commission unanimously
found the company a suitable candidate for a casino license in the
Commonwealth.
- December 30,
2013 - MGM delivered its detailed response to the RFA-2
application for a Category One gaming license to the MGC. Each
response was more than 7,000 pages within 17 binders. Packed in
leather cases, each submission weighed 400 pounds.
- June 13,
2014 – Named winner of Region B casino license
- Summer 2014 - Commencement of Work
(Pending outcome of gaming repeal matter)
- Early 2017 - Anticipated MGM
Springfield opening
PAYMENTS FOR HOST AND SURROUNDING COMMUNITY
AGREEMENTS
(Due following payment of the $85 million licensing fee to MGC)
- Springfield - $15
million upfront during construction period; $25 million annually during operations
- Longmeadow - $850,000 upfront; $275,000 annually - with open-ended legal
fees
- West
Springfield - $665,000 upfront (memorial avenue reconstruction
plus consultant costs); $425,000
annually - with open-ended legal fees
- Agawam - $125,000 upfront; $150,000 annually
- Chicopee -
$125,000 upfront; $150,000 annually
- Ludlow - $50,000 upfront; $100,000 annually
- Wilbraham - $50,000 upfront; $100,000 annually
- East
Longmeadow - $50,000
upfront; $100,000 annually
- Holyoke -$50,000 upfront;
$85,000 annually
Statements in this release that are not historical facts are
forward-looking statements involving risks and/or uncertainties,
including those described in the Company's public filings with the
Securities and Exchange Commission. The Company has based
forward-looking statements on management's current expectations and
assumptions and not on historical facts. Examples of these
statements include, but are not limited to, statements regarding
the development of MGM Springfield and the expected timing of the
Supreme Judicial Court's decision on the gaming repeal question.
These forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements include effects of economic conditions
and market conditions in the markets in which the Company operates
and competition with other destination travel locations throughout
the United States and the world,
the design, timing and costs of expansion projects, risks relating
to international operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions and additional risks and uncertainties
described in the Company's Form 10-K, Form 10-Q and Form 8-K
reports (including all amendments to those reports). In providing
forward-looking statements, the Company is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise, except as required by
law.
SOURCE MGM Resorts International