Business

Economic group urges ‘yes’ vote

Artist rendering of MGM's proposed Springfield casino, as view from Main Street.

An artist rendering of MGM’s proposed Springfield casino, as viewed from Main Street.

SPRINGFIELD — The Economic Development Council of Western Massachusetts is urging Springfield voters to approve the July 16 referendum on the MGM Springfield casino proposal.
The council says it believes the agreement between MGM Springfield and the city could provide an economic boost to the region.
Allan W. Blair, president and CEO of the Economic Development Council, says the casino proposal and host community agreement need a thorough vetting by the state Gaming Commission.
Hard Rock International has proposed a casino for the Eastern States Exposition Grounds in West Springfield and the Mohegan Tribal Gaming Authority is proposing to build a casino in Palmer.
Kate Phelon, executive director of the Westfield Chamber of Commerce, believes that any one of the casino proposals currently would have an impact on the area in regards to business and jobs.
“I can’t take a position on whether a casino in the area would be a good or bad thing,” Phelon said. “But they would definitely have an impact on the Westfield area.”

An artist rendering of the view of the hotel porte cochere.

An artist rendering of a view of the hotel porte-cochere.

A recently signed Host Community Agreement between MGM and Springfield Mayor Dominic Sarno has assured upwards of $25 million to the city of Springfield upon the casino’s opening night, including $15 million to be given to the city during the construction, $5 million for both a community development fund, which would go to support education, libraries and health initiatives, as well as training for police, firefighters and medical service personnel, and an additional $1 million to go to the city for the redevelopment of its Riverfront Park.
All well and good on paper for Springfield, but the question on the minds of everyone else residing west of Worcester is how will this seismic development benefit the towns where we live?
Phelon has been investigating that very question, meeting with the Chambers of Commerce in far-flung cities such a Pittsfield and small towns in rural Franklin County regarding the potential for jobs that the prospective casinos would produce.
Additionally, the proposed MGM/Springfield contract binds the resort company to an annual sum of $50 million to be spent on vendor services from outside of Springfield’s district according to Phelon, an agreement that would impact local businesses in a big way.
However, that proposed measure would not be without difficulties of its own.
“Businesses who would be receiving some of that money would also need to register with the state gaming commission,” Phelon said, a potentially pricy proposition for small mom-and-pop businesses that might keep them from being able to provide their products as vendors at the casino.
Still, there is no denying the potential for the introduction of a gaming center to create jobs for the area, as MGM projects to create 3,000 permanent direct jobs, and 2,000 additional construction related jobs.
“Our plan is to aggressively hire locally,” said Vice President of Public Affairs for the Eastern Region of MGM Resorts International Kelley Tucky. “To do that we are working on getting job applicants up to speed and in the pipeline as soon as possible. That is why MGM Springfield established early relationships with regional training and hiring networks such as FutureWorks, local colleges and our union friends. Additionally we have hosted free career and vendor showcases, and are planning more job preparation workshops that will be open to the public. MGM Springfield will be filling 3,000 permanent jobs in a diverse range of job classifications. With real opportunity for upward mobility we are hoping that job seekers throughout the region will find a career at MGM Springfield.”
MGM estimates that 90 percent of the new jobs will be filled by residents of Springfield (35 percent) and the surrounding communities.
Phelon herself estimates that over 13,000 people may interview for those 3,000 positions, which range from maintenance, gaming personnel, information technology, legal, retail, security, entertainment, engineering, and business-related positions in accounting, marketing, meeting and events, etc.
The city of Westfield has had its own brief flirtation with casino gambling last spring, when the city was being courted by Penn National for an investment that was roughly in the ballpark of $500 to 700 million.
The proposition fell by the wayside, after Penn National and the property owner couldn’t come to terms.
The city still feels that a gaming facility of the magnitude of an MGM Springfield could possibly be a major contributor to the on-going revitalization of The Whip City.
Westfield Executive Director for Economic Redevelopment Jeff Daley believes whoever gets their casino put in Massachusetts’ third largest city is going to make a big impact on The Whip City.
“I’m not on either side of the casino coin, but if people are going to be getting jobs in Springfield because of this (casino), that is a good thing.” Daley said.
Daley also hinted that such a development would be more likely to benefit Westfield residents than if Palmer were to be granted a casino of their own, a process they have been courting for the last twenty years.
Mohegan Sun unveiled their enhanced Palmer casino plan on Monday. Renderings of the $1 billion proposal were released during a town council meeting by executives of the Connecticut-based company.
The new plans showed details of the recently added indoor and outdoor water park, which is connected to its own 250-room hotel. They also showed the layout of a retail space and cinema area, which is linked to the casino on one side and a different hotel on another.
“One of the downsides for this area regarding Palmer is that it’s just too removed from Westfield,” Daley said. “Nobody is going to drive or ride public transportation to get to Palmer to work as a lifeguard at the Mohegan Sun pool. Either of the prospective Springfield (area) casinos… a lot of people who aren’t working in Westfield right now could be working soon.”

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