Crosby said the host community agreement should not be completed until the background check is finished. A referendum also must be held for voters to weigh in on the project. The second phase of the application will include specifics on a project design and jobs.
Massachusetts Gaming Commission chairman visits Palmer to talk about casino licensing process
Published: Thursday, October 11, 2012
10.11.2012 | Staff photo by Don Treeger | PALMER — Massachusetts Gaming Commission Chairman Stephen P. Crosby held an informational meeting at Pathfinder Regional Vocational Technical High School in Palmer on Thursday. Jennifer Baruffaldi, spokeswoman for Citizens for Jobs and Growth in Palmer, a citizens group supporting Mohegan Sun, listens at right.
PALMER — State Gaming Commission Chairman Stephen P. Crosby told a crowd of casino supporters gathered at Pathfinder Regional Vocational Technical High School on Thursday that whether or not a casino company pays the $400,000 application fee early has no bearing "pro or con" on the final application.
The question about the $400,000 fee was asked by James L. St. Amand, who is the community liaison for Northeast Realty, the company leasing approximately 150 acres across from the Massachusetts Turnpike exit here to Connecticut-based Mohegan Sun for a resort casino.
The issue of the $400,000 fee has been raised by casino supporters, who say it would show a level of commitment to the town if Mohegan pays the fee early.
Crosby explained that the fee is required to be paid when the final background check forms are submitted on or before Jan. 15 – that's part of phase 1 of the application process. One reason to pay the fee early, Crosby said, would be to meet with various state agencies, such as the Department of Transportation or Environmental Affairs, about proposed projects.
"State agencies don't want to spend a lot of time talking to people if they're just tire kickers," Crosby said.
"There is no advantage or disadvantage relative to the commission, but it is an advantage in talking to state agencies," Crosby added.
“We won’t allow those meetings to take place without the fee."
Mohegan officials have said that access to the site would be through a "flyover" ramp from the Massachusetts Turnpike.
Before the meeting, Paul I. Brody, Mohegan's vice president of development, said the issue of the application fee will soon be moot, as Mohegan is prepared to submit its information for phase 1 of the application process.
Brody said that Mohegan Sun has had "adequate access to state officials to date" regarding the project. Brody noted that host community agreement negotiations are ongoing.
"I know that we're way ahead of everyone else, in the west anyway," Brody said.
Police Chief Robert P. Frydryk asked if companies could offer more than the required $85 million license fee, and Crosby replied yes.
"How will you keep it from turning it into a bidding war?" resident David E. Whitney asked.
"We won't," answered Crosby.
But Crosby said "you give us $100 million and a lousy proposal, you'll never get to us no matter how much money you'll spend."
Crosby explained that the first phase of the application process is not site specific, and only gives bidders the right to be applicants and move on to the next stage. "Intrusive" background checks will be conducted to determine a company's ability and financial stability to develop a project, he said. That could take six to nine months, he said.
Crosby said the host community agreement should not be completed until the background check is finished. A referendum also must be held for voters to weigh in on the project. The second phase of the application will include specifics on a project design and jobs.
He said the state gaming law, passed last year, is admired across the country, and its intent is to create jobs and spur economic development. Revenues from the proposed three casinos and slot parlor allowed through the law are expected to be between $300 million and $500 million.[overstated projections]
Jennifer L. Baruffaldi, a spokeswoman for Citizens for Jobs and Growth in Palmer, a pro-casino group, asked if casinos would be mandated to have a percentage of local residents as employees. Crosby said that issue could be addressed by the host community.
Casino licenses are expected to be awarded in early 2014.
Crosby was the only member of the Gaming Commission to attend the Palmer forum, which he described as informational.
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