Discussions Resuming on Boston Casino

Discussions were to resume Monday morning at the Boston teacher's union hall in Dorchester

State gambling regulators were to resume discussions on awarding the lucrative Boston-area casino license to either Wynn Resorts or Mohegan Sun.

In a surprise move, the Massachusetts Gaming Commission suspended last week's deliberations in order to give the two casino giants time to respond to a series of terms and conditions the panel wants to impose on the projects. Discussions were to resume Monday morning at the Boston teacher's union hall in Dorchester.

The commission wants Wynn to consider redesigning the exterior of its proposed resort complex in Everett, which includes a 27-story glass hotel tower that Acting Commission Chairman James McHugh has classed as "generic."

It also wants Wynn to pay up to 10 percent of the long-term costs to improve traffic-clogged Sullivan Square in Boston.

For Mohegan Sun, the commission wants the company to secure $100 million more in equity for its proposed casino at the Suffolk Downs horse racing track in Revere.

The commission last week released its months-long review of the two rival plans.

Wynn's $1.6 billion proposal, which calls for reclaiming 30 acres of heavily-polluted land along the Mystic River, appears to have a slight edge in the panel's rating system, which includes reviews of each project's design, finances, economic development potential and impacts to local communities.

Overall, Wynn's project won high marks for its vision of a luxury resort that would appeal to a wealthy international clientele and leverage Boston's reputation as a tourist destination to create greater economic activity in the region.

In contrast, regulators voiced concerns that Mohegan Sun envisioned a less ambitious facility more focused on drawing Boston-area residents and not encroaching on the customer base of its Connecticut casino, which includes Bay State residents.

In the finances category, Wynn was given higher marks because of the company's stronger equity to debt ratio while regulators expressed concern that Mohegan Sun's project, which it bills as costing $1.1 billion, was "highly leveraged" and called for a significant share of its spending to go toward non-construction costs like financing.

Wynn also was rated slightly higher than Mohegan Sun for its potential positive impacts to the state economy, from job creation potential, local business investment and efforts to bolster regional tourism.

But Mohegan Sun's building and site design was credited as being more appropriate for their surroundings while Wynn's lost points for appearing too generic.

The company also rated higher for its plans to address impacts to local traffic and its financial compensation agreements with local cities and towns.

Wynn's plan was judged to poorly address traffic and other impacts to nearby Boston, where Mayor Martin Walsh's administration has vehemently opposed the regional licensing process in general and Wynn's proposal in particular.

Copyright AP - Associated Press
Contact Us