Supplier News

US – MGM makes ‘incomprehensible’ changes to Springfield plan

By Phil - 22 October 2015

MGM Resorts is risking jeopardising its recent licence award in Springfield, Massachusetts, by reducing the size of the already approved project by almost 14 per cent.

Springfield officials are not happy about the proposed reduction with Mayor Domenic Sarno, slamming it as ‘incomprehensible’ that MGM is now looking to shave 122,000 sq. ft. off the commitment that won the tender.

“I will not approve any changes to the design that have a negative impact,” he said.

MGM Springfield President Michael Mathis claimed however that reductions would not impact the project’s cost or revenues saying that 90 per cent of the reduction is taking place away from the public facing end of the project.

Mr. Mathis said: “We remain committed to everything we campaigned for. That is, the largest private economic development project in this region, a billion dollars of payments over four years to the city of Springfield, 3,000 jobs, 2,000 construction jobs and a world class resort. That’s all still on the table. What you’re seeing and feeling right now is the tweaks that come with the design process.”
Springfield City Council President Michael Fenton though remained sceptical.

“I’d love to hear their argument for how that’s the case, based on a 14 per cent decrease,” he said. “My belief is that some of it is substantive. In the coming days and weeks, we’ll find out what some of those are.”

A 100-page filing MGM submitted to state environmental regulators outlines how the reductions largely impact retail and restaurant space with a smaller bowling alley and movie theater.

Last month MGM changed a 25-story hotel to a six-story hotel, relocated an apartment complex to another site and axed 387 parking spaces.