Springfield and MGM have reached a deal which would push back the opening of the downtown casino by 6 months to September 2018. Both sides say the delay is necessary to avoid problems from the Interstate 91 viaduct construction.
In the agreement MGM will give Springfield $3-million in early tax payments, plus another million to be used for public safety. Springfield’s Chief Development Officer Kevin Kennedy says the money is important as the city is counting on it to cover future budgets.
“We had a common interest to have a good opening,” Kennedy says. “So what we said to them is ‘that’s fine, we would be flexible on the opening date as long as we receive the money that you had promised us in the different buckets on time’ “.
Casino head Michael Mathis told the Gaming Commission Thursday that waiting until the highway project is finished, and not inconveniencing customers, makes financial sense for both the company and the state.
“The industry is littered with many examples of companies that made the wrong decision for opening,” Mathis says. “And those are long lasting impacts that it takes a long time to recover from. The amount of revenue that would be lost long term, I think, would offset the short term delay.”
The Gaming Commission didn’t vote on the delay. But Chairman Stephen Crosby says he supports the idea.