>> MGM RECENTLY ANNOUNCED PLANS TO SCALE BACK ON THE HOTEL TOWER
AND OVER ALL SIZE OF THE DOWNTOWN CASINO IN SPRINGFIELD.
SPRINGFIELD CITY COUNCIL PRESIDENT HAS VOICED HIS
CONCERNS ABOUT THESE CHANGES AND CAME TO TALK WITH US ABOUT IT.
>> MY CONCERNS WITH THE PROJECT AND THE PROSPECT OF THE
DEVELOPMENT REACHING THE ECONOMIC SPINOFF THAT WE HAVE
PLANNED AND COUNTED ON FOR THE LAST THREE YEARS REALLY STARTED
WHEN MGM ANNOUNCED LIMB NAIFTION THE 25-STORY GLASS TOWER.
THE REASON FOR THAT FOR ME PERSONALLY WAS THAT I FOUND IT
DIFFICULT TO BELIEVE THAT THE ELIMINATION OF THAT TOWER
WOULDN'T HAVE VERY REAL IMPACTS ON THE NUMBER OF SQUARE FOOTAGE
ASSOCIATED WITH THE PROJECT, THE NUMBER OF TOURISTS WHO ARE
WILLING TO COME AND DINE AND RECREATE IN OUR DOWNTOWN, AND
ALSO THE NUMBER OF REALLY RAW RETAIL AND ENTERTAINMENT SPACE
THAT MGM HAD PLANNED FOR THE SITE.
THE CITY HAS NOW SAID BASICALLY, WAIT A MINUTE, YOUR APPLICATION
AS YOU PUT IT TO US IS NO LONGER WHAT WE WERE TOLD IT WAS GOING
TO BE SOME TIME AGO.
THE CITY HAS BASICALLY AT THIS POINT SENT BACK THE APPLICATION
AND SAID, LET'S FIX THIS.
LET'S MEET.
MEETING COMING UP WITH THE MAYOR, TOP MGM PEOPLE ON
THURSDAY.
WHAT'S YOUR SENSE OF HOW ALL OF THIS IS DEVELOPING NOW?
>> I WANT TO STRESS THAT WE HAVE A CONTRACT.
AN AGREEMENT WITH MGM-SPRINGFIELD.
UNDER STATE LAW MASSACHUSETTS GENERAL LAW CHAPTER 23 K, KNOWN
AS THE HOST COMMUNITY AGREEMENT.
SO IN THAT AGREEMENT WHICH THE VOTERS APPROVED BY REFERENDUM
VOTE IN THE CITY OF SPRINGFIELD, WE BARGAINED FOR CERTAIN
SERVICES, CERTAIN COMPONENTS TO THE DEVELOPMENT BECAUSE THIS WAS
NEVER ABOUT SLOT PARLORS AND TABLE GAMES, NOT ABOUT CRAPS AND
ROWLETT.
FOR THE CITY OF SPRINGFIELD AND THE PIONEER VALLEY IT WAS ABOUT
THE SYNERGIES THAT COULD BE CREATED DOWNTOWN AND REGIONALLY,
WHAT KIND OF SMALL AND LARGE SCALE BUSINESSES WOULD WANT TO
COME HELP SERVICE AND CAPITALIZE ONTO THE INCREASED FOOT TRAFFIC
THAT IT WOULD BRING TO OUR CITY.
AS A PART OF THAT AGREEMENT WE'RE GUARANTEED CERTAIN
CONVEYOR FOOTAGE IN TERMS OF RETAIL, CERTAIN SQUARE FOOTAGE
IN TERMS OF ENTERTAINMENT INCLUDING A BOWLING ALLEY,
OUTDOOR SKATING RINK, ET CETERA, AND THE MORE THOSE COMPONENTS OF
THE PROJECT GET DETERIORATED, IN LIEU OF DETERIORATING THE SIZE
OF THE GAMBLING FLOOR WHICH YOU'LL NOTICE IS VERY MINIMALLY
REDUCED AT THIS STAGE, THAT REPRESENTS TO ME A BENEFIT FOR
MGM, AND BY COMPARISON A DETRIMENT TO THE CITY OF
SPRINGFIELD.
SO WHAT WE NEED TO DO IS SIT DOWN WITH MGM, TAKE A HARD LOOK
AT THE AGREEMENT AND THE TERMS THAT WE CAME TO AND THE CITY
NEEDS TO DRAW A VERY CLEAR LINE IN THE SAND THAT SAYS, LOOK, IF
THERE ARE GOING TO BE CHANGES TO THIS AGREEMENT THEY NEED TO BE
CHANGES THAT ARE IN OUR MUTUAL INTERESTS OR THAT ARE IN THE
BEST INTERESTS OF THE CITY OF SPRINGFIELD, NOT JUST THE
INTERESTS OF MGM.
MAYBE THIS IS ANCIENT HISTORY WITH THE WAY THIS ANNOUNCEMENT
ABOUT 14% OVER ALL CUTBACK BUT AFTER THE HOTEL CHANGES, BEFORE
THE 14% SPACE CUT WAS ANNOUNCED, YOU SAID IN RETURN FOR SCALING
BACK THE TOWER MGM PERHAPS WAS OPEN TO A BETTER BARGAIN FOR THE
CITY TO MAYBE DO SOMETHING ELSE DISTINCTIVE FOR THE SKYLINE, YOU
FIGURE HOUSING COMPONENT, MAYBE HELP ATTRACTING A MINOR LEAGUE
BASEBALL TEAM.
THERE WERE DISCUSSIONS.
IS ALL OF THAT STILL ACTIVE OR UP IN THE AIR NOW THAT WE HAVE
SEEN THESE MOVE FURTHER?
>> IT IS ACTIVE AND I APPRECIATE MGM'S WILLING NECESSARY TO
COOPERATE WITH THE CITY.
I'LL GO BACK -- I USE MY LEGAL TRAINING IN THIS TYPE OF
ENVIRONMENT I THINK.
WHEN YOU HAVE TWO CONTRACTING PARTIES AND PROMISES HAVE BEEN
MADE TO BOTH SIDES TO INCENTIVIZE THE DEAL, ONE SIDE
DOESN'T THEN LATER AFTER THE DEAL HAS BEEN SIGNED AND
EVERYBODY GOES HOME AND IS HAPPY ABOUT THE BUSINESS ARRANGEMENT
GET TO SAY, WAIT A MINUTE, I'LL CALL YOU THE NEXT MORNING AND
I'M GOING TO CHANGE THIS COMPONENT, THAT COMPONENT, ALL
WHICH ARE REDUCTIONS TO WHAT YOU WOULD HAVE BEEN GETTING.
SO IT FELT LIKE TO ME AT THE OUTSET THAT'S WHAT MGM WAS
ATTEMPTING TO DO WITH THE REDUCTION OF THE 14% AND
ELIMINATION OF THE TOWER.
WHAT I SAID TO THEM, AND I FEEL I SAID PRETTY CLEARLY, WAS THAT
THERE NEEDS TO BE COMPONENTS THAT JUSTIFY THAT FOR THE
SPRINGFIELD TAXPAYER, SOME OF THE THINGS THAT THEY HAVE AGREED
TO COUNTER INCLUDE -- CONSIDER INCLUDE A MARQUEE THAT WILL
CHANGE THE SKYLINE IN SOME RESPECTS MAYBE NOT THE SAME AS A
HOTEL TOWER WOULD, BUT FOLKS TRAVELING DOWN I-91 CAN SEE THIS
PROJECT AND HOPEFULLY STOP IN OUR CITY.
OTHER COMPONENTS INCLUDE EXPANSION OF THEIR RESIDENTIAL
MARKET RATE APARTMENTS WHICH ARE REQUIRED TO BE 54 UNITS.
MAYBE WE CAN GET THAT A LITTLE BIT HIGHER.
I ALSO HAVE ASKED THEY LOOK INTO INTRODUCING CONDOMINIUMS INTO
THE DOWNTOWN SO WE CAN HAVE A HOMEOWNERSHIP COMPONENT TO THIS
REALLY STATE OF THE ART MARKET DEVELOPMENT SO THAT WE CAN GET
FOLKS THAT MAYBE MOVE TO THE SUBURBS AND WOULD CONSIDER
MOVING TO A NEW, REVITALIZED SPRINGFIELD DOWNTOWN RENAISSANCE
AREA, BUT WHO WANT TO HAVE SOME EQUITY IN THE PROPERTY THAT THEY
ARE LIVING IN AND THEY DON'T WANT TO BE PAYING RENT ON A
MONTHLY BASIS.
THOSE ARE THINGS WE HAVE TALKED ABOUT.
I HOPE AND BELIEVE MGM WILL CONTINUE TO CONSIDER THEM
STRONGLY AND IF THEY BRING US A PACKAGE WITH SOME OF THOSE
COMPONENTS WE'LL MAKE A DECISION ON THE MERITS.
>> HOW BOTHERED WERE YOU WHEN YOU -- OTHER CITY LEADERS, THE
MAYOR, YOU READ ABOUT THESE CHANGES, CUTBACKS, ON MASSLIVE.
YOU DIDN'T GET A CALL.
YOU HAD MET WITH THE MGM PEOPLE NOT TOO AWFULLY LONG BEFORE THAT
AND THEY HAD TO HAVE HAD THE CUTBACKS IN MIND.
HOW DIFFICULT WAS THAT?
>> IT'S CALLED COMMUNICATION.
THIS ISN'T A UNIQUELY SPRINGFIELD PROBLEM.
WE'RE SEEING IT IN WASHINGTON, BOSTON, AT EVERY LOCAL LEVEL.
WHEN THE MAYOR MADE THE ANNOUNCEMENT ABOUT THE
ELIMINATION OF THE 25-STORY TOWER THE CITY COUNCIL FOUND OUT
ABOUT IT THROUGH THE MEDIA.
THROUGH MASSLIVE AND THROUGH OTHER REPORTING SOURCES.
AND THAT'S A PROBLEM OF INTERNAL COMMUNICATION IN THE CITY.
COMMUNICATION BETWEEN THE EXECUTIVE BRANCH AND MAYOR SARNO
AND THE LEGISLATIVE BRANCH AND 13 MEMBERS OF THE CITY COUNCIL
MYSELF AS COUNCIL PRESIDENT.
THE SECOND ANNOUNCEMENT, THE 14% REDUCTION, WAS A STORY THAT WAS
BROKE BY THE MEDIA BASED ON THE PROJECT FILING FROM MGM.
THAT WAS A BREAKDOWN IN COMMUNICATION BETWEEN THE
DEVELOPER AND THE CITY.
THE MAYOR SAID HE WASN'T AWARE OF THAT AND THAT'S SOMETHING WE
NEED TO MAKE SURE WE WORK ON.
THE LAST THING WE WANT IS A DEVELOPER EMBARRASSING OUR MAYOR
OR CITY WITH LACK OF COMMUNICATION.
WE NEED TO WORK ON THAT IF WE'RE GOING TO PUT OUR BEST FOOT FOR
WASHED.
>> ARE THE CHANGES BEING PUT FORWARD BY MGM SO SIGNIFICANT
THAT THEY REALLY CHANGE THE OVER ALL PROJECT IN A WAY THERE NEEDS
TO BE OR SHOULD BE ANOTHER PUBLIC REFERENDUM?
>> IT'S TOO EARLY TO SAY BECAUSE WE HAVEN'T BEEN CONFRONTED WITH
ALL THE COMPONENTS.
BASED ON WHAT I KNOW NOW ABOUT THE PROPOSED ELIMINATION OF THE
TOWER AND PROPOSED REDUCTION OF 14% OVER ALL SQUARE FOOTAGE ON
THE SITE INCLUDING RETAIL AND ENTERTAINMENT, TO ME THAT
JUSTIFIES A REFERENDUM.
TO ME, THAT IS NOT SOMETHING THAT THE CITY OF SPRINGFIELD
SHOULD ASCENT TO.
IT'S A ONE-SIDED CHANGE AND THAT'S NOT THE DEAL WE STRUCK.
>> SPRINGFIELD CITY COUNCIL PRESIDENT MIKE FENTON, THANKS
FOR COMING IN.
>> THANKS FOR HAVING ME ON.