Boston Signs Casino Host Agreement with Suffolk

Suffolk Downs and Caesars Entertainment have reached a historic host community agreement with the City of Boston, a critical step in the pursuit of a license to develop a world-class casino resort at the site of the East Boston thoroughbred racetrack. The agreements provide the city with significant employment opportunities for local residents, infrastructure improvements and other economic and community benefits. The developers are finalizing the details of an agreement with Revere and expect to announce those details within days.

The agreement with Boston, announced today by Mayor Thomas Menino, is the result of a comprehensive and detailed review of impacts and benefits, informed by months of public input and more than 100 public meetings and forums attended by thousands of local residents.   “We are proud of the strong partnership we have built with Boston as well as our neighboring communities,” said Joe O’Donnell, principal owner of Suffolk Downs. “Our proposed development will directly benefit Boston with annual payments as well as up-front investments in schools, parks, vital services and transportation improvements. We believe our proposed project has the best location and will create the most local jobs and provide the greatest growth in tourism, hospitality and conventions and meetings in the Commonwealth.”

“We want to thank Mayor Menino and his team for their efforts in negotiating the most comprehensive and far-reaching host community agreement of its kind,” said Richard Fields, principal owner of Suffolk Downs. “We are also extremely appreciative of the efforts of Revere Mayor Dan Rizzo and his team, and look forward to finalizing an agreement there in short order.”

“We have a tremendous opportunity to develop a resort that befits Boston and complements the vibrant array of cultural, historic and entertainment offerings that exist here,” said Gary Loveman, chairman, president and CEO of Caesars. “Boston is ideally suited for our city-integrated resort model, which is designed to reflect the distinct attributes of the host communities and drive maximum economic impact to residents and businesses. Our proposal is intended to drive tourism to the region and introduce our guests to all the Greater Boston area has to offer.”

The proposed billion-dollar development is expected to be the most sustainably designed and built resort casino in the world. It will feature world-class amenities, including hotel, dining, spa, entertainment space and live thoroughbred racing in addition to gaming space and a World Series of Pokerâ„¢ room.

As part of its agreement with Boston, the developers have made upfront and ongoing financial commitments to each community. These commitments include combined, estimated annual payments of $52 million to Boston once the resort is fully operational. The amount of the payments is determined in part by the resort’s performance and includes anticipated impact fees as well as tax payments. In addition to the annual payments, the agreements include more than $33 million in one-time community investments, including capital commitments related to education, parks, public health, arts, public safety and more than $45 million in transportation and infrastructure improvements.

The payments include annual community impact fees that will cover the increased cost of providing municipal services. These fees total approximately $20 million a year to East Boston.

“We are proud of the role that Suffolk Downs has played as a neighbor in East Boston for the past 78 years and believe these agreements and our development plans lay the groundwork for a future rich with opportunity for the community,” said Chip Tuttle, Chief Operating Officer of Suffolk Downs. “Local residents have played an integral role in our process to date by providing valuable feedback at numerous community meetings, and we look forward to continued engagement as we continue through this process.”

Among the specific benefits to the community detailed in the agreements are:  • The creation of 2,500 construction jobs and 4,000 permanent jobs, with a preference given to local residents; • $45 million in transportation and roadway improvements in East Boston and Revere; • Annual spending with regional and local vendors to procure the goods and services; • Capital investment in East Boston, including a new Business Improvement District, the construction of a new youth and senior center, and investment in local parks and schools.

About Suffolk Downs: Founded in 1935, Suffolk Downs has been a gaming and entertainment venue in the city of Boston for over 78 years.  It is New England’s only remaining active Thoroughbred racetrack.  Rich in history, Suffolk Downs has hosted Hall of Fame horses Seabiscuit, Whirlaway and Cigar, and has been the site of performances by world-renowned entertainers, including the Beatles and Aerosmith.  For more information, please visit www.suffolkdowns.com.

About Caesars: Caesars Entertainment Corporation is the world’s most diversified casino-entertainment company. Since its beginning in Reno, Nevada, 75 years ago, Caesars has grown through development of new resorts, expansions and acquisitions and now operates casinos on four continents. The company’s resorts operate primarily under the Caesars®, Harrah’s® and Horseshoe® brand names. Caesars also owns the World Series of Poker® and the London Clubs International family of casinos. Caesars is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. We are committed to environmental sustainability and energy conservation and recognize the importance of being a responsible steward of the environment. For more information, please visit www.caesars.com.

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