Town Signs Deal with Mohegan Sun Casino

Thursday, May 29, 2014
By Transcript Staff

Mohegan Sun announced the completion of terms for a surrounding community agreement with the Town of Winthrop, marking its tenth surrounding community agreement and another critical step in its pursuit of a license to develop a world-class casino resort in Revere.

The agreement will provide significant economic and community benefits along with an annual local impact payment of $2 million to the Town of Winthrop once Mohegan Sun Massachusetts is open. This includes annual payments of  $100,000 to Winthrop’s Viking Pride Foundation, $100,000 to Community Action Programs Inter-City, Inc., and $200,000 to be divided among any business improvement districts for business development, promotion and marketing.

“Mohegan Sun strives to be a good neighbor wherever it does business and we are excited to have reached a generous surrounding community agreement with the Town of Winthrop that recognizes the town’s unique nature and ensures that our development in Revere will provide significant benefits for Winthrop, its businesses and its residents,” said Gary Luderitz, vice president of development for Mohegan Sun. “We look forward to the Town’s support as this process moves forward and we continue to show why Mohegan Sun’s proposal is better for Massachusetts.”

Under the terms of the surrounding community agreement, Winthrop will dedicate a portion of the $2 million for recreational capital projects, including completion of the Town’s Harbor Walk, along with funds for police, fire and water ferry service.

“We have come to an agreement with Mohegan Sun that we believe is respectful of the Town of Winthrop and its unique challenges,” said Peter Gill, Town Council President.  “If Mohegan Sun is successful in obtaining the license, we hope to continue a respectful dialogue to assure mitigation of our concerns as their project moves forward.”

Mohegan Sun has developed a unique outward facing business model that is based on partnering with neighboring communities, organizations, businesses and venues to generate new economic development and tourism opportunities.  The agreement ensures that small businesses in Winthrop will have access to millions of dollars in annual spending by Mohegan Sun Massachusetts and that residents will be given job and job training opportunities at the resort casino.  Mohegan Sun Massachusetts expects to spend about $50 million annually on goods and services from businesses located within a 15-mile radius of Revere once the resort is fully operating.

“This agreement will ensure that Winthrop residents benefit from the proposed project”, said James McKenna, Town Manager. “We believe that the resources provided in the agreement should accomplish a lot for the benefit of the town”.

Similarly, Mohegan Sun Massachusetts expects to create 4,000 jobs and has committed to hiring 75 percent of its workforce within the same 15-mile radius.  Also included as part of the agreed-upon terms are strong commitments to regional economic development – such as the cross marketing of cultural institutions, hotels, and other organizations in Winthrop, and providing local businesses with access to vendor opportunities and Mohegan Sun’s industry leading players club points program.

“Today’s agreement marks another major milestone for Mohegan Sun Massachusetts, which we believe is the best choice for the Commonwealth,” said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority.  “We would like to thank the town of Winthrop for its work and commitment in reaching this agreement, which will deliver new job and business opportunities, economic development, and $2 million in annual payments to the town.”

In addition to town of Winthrop, Mohegan Sun has also signed Surrounding Community Agreements with nine other communities including Cambridge, Chelsea, Everett, Lynn, Malden, Medford, Melrose, Salem and Somerville.

The agreements are the result of comprehensive discussions over benefits to these cities to be provided by Mohegan Sun should it be awarded a license to develop a $1.3 billion resort casino in Revere.  Mohegan Sun has also designated Saugus and Boston as surrounding communities and is continuing discussions with those municipalities.

Mohegan Sun Massachusetts will be a $1.3 billion resort casino with two hotels and world-class dining, shopping and entertainment amenities located on 42 acres in Revere. The resort casino will also help preserve 800 jobs in the historic thoroughbred racing industry at Suffolk Downs.

Mohegan Sun and Suffolk Downs share a long-standing commitment to working with local businesses, community leaders and cultural and tourist organizations. Currently, Mohegan Sun spends nearly $500 million annually on goods and services from local vendors near its Connecticut and Pennsylvania facilities.

  • hooleyhoop

    For once in his career as a petty town sultan, Peter Gill is correct in something he pontificates: “If Mohegan Sun is successful in obtaining the license, we hope to continue a respectful dialogue to assure mitigation of our concerns as their project moves forward.” The big word is “if”. The pettifoggers that waste the trees used for what is fondly known as the Bird Cage Liner write as if the Indians are assured of a license for a casino in Revere. At least Gill has the sense to caution the less than certain issuance of such a license. Then there is the matter of how an unidentified crowd within Winthrop wants to spend money if the Suffolk Downs gang ever deliver some to Winthrop. Not a word about townspeople having a say in such an important decision as to how such money would be spent. It is like the people that negotiated this alleged agreement. Who were they and who gave them the power? Winthrop needs an Edward Snowden to get the secrecy that the sneakey peteys envelop themselves in to be torn away and exposed to daylight.

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