New England Public Radio

Penn National, MGM Tout Commitments to Springfield Revitalization at Public Forum

At a public forum organized by the City of Springfield, Penn National Gaming and MGM Resorts, two companies vying for the region’s single casino license, presented their proposals to city residents. Each proposed casino would cost upwards of $800 million dollars.

Both companies spent much of their respective 45-minute presentations highlighting their commitments to the revitalization of Springfield to the over 200 residents in attendance.

Penn National is proposing a casino in the city’s North End on land currently owned by the Republican newspaper and Peter Pan Bus lines, which would require both businesses to relocate. Jay Snowden, vice President of regional operations at Penn National says relocating those businesses would spread economic growth across the city.

“Call it a renaissance, call it a revitalization, we’re going to create economic activity in other areas of Springfield besides just the casino parcel.”

Bill Hornbuckle, president of MGM, which is proposing a casino in the city’s South End, emphasized that the company’s casino would revitalize main street, but also stressed that other entertainment like a cineplex and bowling alley would be on offer at its resort.

“You don’t need to go into the casino, you don’t need to touch that if you don’t choose to, but [it’s] something to reinvigorate, and bring people back downtown.”

Following the presentations, Residents voiced concerns about traffic, crime, jobs, and problem gambling in a question and answer session. But most in attendance expressed support for a casino. Theresa Cooper Gordon of Holyoke, says the presentations convinced her of the regional benefits of a casino as both companies highlighted their support for a number of local non-profits and community organizations.

“I was quite impressed. I was quite impressed with the commitment to give back.”

The developers have until January 3rd to submit formal proposals to the city.

Penn National Proposes $807 Million Springfield Casino – Ameristar Ups Ante to $910 Million

Penn National Gaming Inc. submitted its proposal today to develop a casino complex on16.4 acres on the northern side of the city’s downtown – including properties now owned by the Springfield Republican newspaper and by Peter Picknelly, CEO of Peter Pan Bus lines, near the Amtrak terminal. An official at Ameristar Casinos says it has submitted its plans for a $910 million facility at the former Westinghouse property off Interstate 291. MGM resorts International spokesperson Carole Brennan says it has submitted its proposal for an $800 million development on downtown property damaged by the June 2011 tornado.

Penn National’s plans include the relocation of the Republican’s headquarters to a more central downtown location, and rehabilitation of the Paramount Theater. Spokesperson Eric Schippers says the destination resort’s name and style will be consistent with its “Hollywood” brand.

“We’re talking about recapturing the golden era of Hollywood, and so you’ll see a lot of Art Deco treatment, very tastefully done architectural flourishes that really is just to capture the glamorous era of Hollywood.”

Schippers  says the company’s plans include finding a large retailer to occupy the former Westinghouse property now owned by Ameristar Casinos – which paid $16 million for the industrial parcel.

Ameristar spokesperson Troy Stremming says it has not been in talks to sell their property. Stremmings says its proposal is for a “world-class” resort casino.

“It has a great location, it has easy access off of the highway, and we think it would be a huge opportunity for the city of Springfield to have something that no one else in western Massachusetts has.”

While all three companies paid the $50,000  city application fee, MGM is so far the only developer to have paid the $400,000 application fee for a state casino license. Under the state’s casino law, only one permit will be awarded in western Massachusetts.

Springfield Casino Consultant Questioned for Casino Lobbying Ties

The consulting legal firm hired by the city of Springfield to assist with the siting of a potential casino, is being questioned about its ties to casino operators MGM Resorts and Penn National Gaming. Reports have surfaced that the Chicago-based firm is registered as a lobbyist for both companies.

Shefsky & Froelich, chosen in July, has been registered as a lobbyist for MGM since 2001, and for Penn National since 2003. Those are two of the four companies vying for a casino license in the city. The other two are Hard Rock International, and Ameristar Casinos. Cezar Froelich, chairman of Shefsky & Froelich, says his firm’s work for casinos has primarily been renewing the companies’ licenses. But under Illinois law, Shefsky & Froelich were required to register as lobbyists. Froelich says the partners who work with Springfield are “walled off’ from those who work with casinos.

“I suppose if people want to assume that everybody is not integrous, I could never prove that I didn’t have a call in the middle in the night with somebody from a throw-away cell phone or something of that sort. But lawyers are bound by ethical considerations. We also are dealing with a highly regulated business. We wouldn’t do that because it wouldn’t be the right thing to do, we represented we won’t do that, and I wouldn’t take the chance of doing it. There’s nothing in it for me.”

Froelich says he worked with casinos in the past, but not since 2000. Springfield Solicitor Ed Pikula says he sees Shefsky & Froelich’s firm as a plus for the city, since any casino operator would have strong legal representation.

“If the casino operators are going to have that type of firepower, the city needs to have the same type of firepower.”

Only one casino can be built in western Massachusetts, and several other casino developments have been proposed for cities and towns outside of Springfield.