Massachusetts gambling regulators are pressing for more details on why the cost of MGM’s planned Springfield casino has ballooned. The Massachusetts Gaming Commission, during a meeting in Springfield Thursday, heard mixed opinions from the public about changes in the project MGM is proposing in an effort to control the costs.
MGM Springfield President Mike Mathis said a plan a to shrink the total square footage of the casino complex by roughly 10 percent and eliminate a 25-story hotel from the design will not reduce projected gambling revenue or diminish amenities such as dining and retail, but will help rein in skyrocketing costs that he blamed on the delays the project has encountered.
"From a plan view we think this project is remarkably similar and in fact better," Mathis told commissioners.
Mathis and other MGM executives Thursday outlined the changes proposed for the Springfield project during a two-hour presentation to the five-member commission. The gaming commission, the mayor of Springfield and the City Council must all sign off on the changes.
The total budget for the project has increased to $950 million, $150 million higher than when the gaming commission awarded a casino license to MGM in June 2014. MGM officials say projected costs for building materials and labor have gone up sharply and the company is paying out more than it anticipated in regulatory and host community expenses because the actual construction work has been delayed.
Mathis said MGM figures it will save $50-$75 million by building a six-story hotel rather than the glass tower design originally planned. He said taking away the skyscraper will not take away the premium hotel experience for casino guests.
"We feel really strongly that the new low-rise hotel is a better design," Mathis said.
Commission Chairman Stephen Crosby said MGM’s presentation was “persuasive.” But, he and other commissioners pressed for a more thorough explanation for the rising costs.
" Somebody knows what changed here, either what went wrong, or what changed or some combination of both," Crosby said. Addressing Mathis he added, " You are telling us in generalities, which I take at face value, but a lot of us are interested in particulars so we can really understand."
Following the presentation from MGM, the commissioners listened to comments from Springfield residents and city officials.
Karen Ford knocked the proposed redesign of the casino project. " When I look at the MGM presentation it is not impressive at all to me."
Carol Kerr said she has no complaints about the changes MGM wants to make. " It is not in ( MGM's) best interest to build something less than spectacular."
Springfield City Council President Mike Fenton said eliminating the high-rise hotel removes the “wow factor” from the casino project.
" I still support MGM and their overall vision and mission for the city of Springfield, however I stand before you today opposed to their design changes," said Fenton.
City Councilor Tim Rooke said people are too fixated on the hotel tower.
" This is the largest project in the city of Springfield's history and changes are to be expected. People need to check their ego at the door and realize the people who are proposing this, it is their livelihood."
Crosby said no vote has been scheduled by the commission on MGM’s new plans.
" If there is going to be change we need to understand why and see a rational explanation and make sure no damage is done to the key elements ( of the project)," Crosby said in an interview.
The commission in August approved MGM’s request a one-year delay in the grand opening of the casino to September 2018 because of the major reconstruction of Interstate 91, which is just beginning to ramp up.
Mathis said MGM is still hoping to open the Springfield casino three years from now.
" We are holding to the September 2018 date. It assumes we can get through this process with the MGC and the city and we feel confident we will, and start with demolition this winter," Mathis said.
The city council is expected to hold a series of meetings in early January to review in detail the site plans for the casino project. The plans are currently being reviewed by the city’s office of Planning and Economic Development.
The council must approve special zoning for the casino and authorize street closures for the major construction work to begin.
