Palmer Water Commissioner chairman Charles "Mike" Callahan denies conflict, but says he will abstain from any casino agreement vote
By Lori Stabile, The Republican
on May 02, 2013
PALMER - Charles "Mike" Callahan III, chairman of Palmer Water District No. 1 water commissioners, said he will abstain from any vote that has to do with the Mohegan Sun Massachusetts resort casino project off Thorndike Street, to avoid any perceived conflict of interest.
Though he says he has no role with MGM Resort International, which wants to construct a casino in Springfield, Callahan and two of his family members are listed as having ties to that project.
Callahan, a member of the board for 15 years, is listed as a "qualifier" - along with his brother and sister - for Blue Tarp reDevelopment, MGM Resorts International's development arm. MGM was chosen this week by Springfield Mayor Domenic J. Sarno to build an approximately $800 million casino in the city's South End.
MGM and Mohegan Sun are vying for the lone Western Massachusetts casino license, along with Hard Rock International, which wants to build in West Springfield. The Hard Rock project earned an endorsement from the West of the River Chamber of Commerce on Thursday.
MGM last year dropped a plan to develop a casino in Brimfield, on Callahan family land.
Callahan said he gave a letter to his board earlier this year outlining his stance regarding the Palmer project, but one board member said he never saw it.
Water Commissioner Joseph Mastalerz said he has not seen the letter and plans to go to the board office on Friday to try and find it. Mastalerz said Callahan told him about the letter on Thursday, and that he intended to talk to the other commissioners about it three months ago.
Mastalerz said he has concerns about Callahan's name on the Blue Tarp list and was going to ask Callahan about his involvement. He planned to approach him Friday at a commission meeting, but that was rescheduled to Wednesday.
The land in Palmer is served by the Palmer Water District, meaning that eventually the water commissioners would have to vote on an agreement. Water use for the approximately $600 million resort casino has been a topic of discussion over the years, and is one of the lingering issues in the host community agreement between Connecticut-based Mohegan and the town of Palmer. That agreement is expected to be finalized in July.
Town Manager Charles T. Blanchard and Palmer Water Superintendent James Ammann would not get into specifics regarding water use for the casino, citing confidentiality agreements. At one time, when the $775 million project was touted as being in the $1 billion range, the Quabbin Reservoir was discussed as a potential water source. Blanchard said Ammann and the district's lawyer, Henry Rigali, have been involved in water discussions.
"I have no input in negotiations and I don't have any say in how any documents are being drafted," Callahan said Thursday.
Ammann, who answers to the Board of Water Commissioners, said he wasn't aware of Callahan's involvement with MGM, and thought only David Callahan had something to do with that project.
David Callahan, president of Palmer Paving, and sister Janet Callahan, also are listed as qualifiers for the MGM project, according to the Massachusetts Gaming Commission. David Callahan was with MGM officials last year during the Brimfield announcement.
Gaming Commission spokeswoman Elaine Driscoll said the commission's investigators determine who "qualifiers" are, adding they could be officers, board members or key investors with a company.
Applicants for casino licenses, along with their qualifiers, are currently the subject of background checks by state police and gaming experts, according to information from the commission.
Charles Callahan, who said he is paid $80 a month as a water commissioner, said it is his way of giving back to the community. He said if people are questioning his role as a commissioner, they should run for the open position on the three-member board. The district's annual meeting and election is May 14. Fellow board member Louis Iadisernia, who is not seeking reelection, could not be reached for comment. Callahan, who is up for reelection next year, said people should vote him off if they do not like the job he is doing.
As for his listing as a "qualifier," Callahan said he has no role with MGM, and has no part of that casino project.
"My name is listed on a number of projects throughout Western Massachusetts," Callahan said.
Callahan said he is for a project that brings economic development to Western Massachusetts, and the ripple effect it would have on jobs, revenue and tourism.
"Any community that gets (a casino) will benefit the entire Western Massachusetts area," Callahan said.
Ammann said he is not concerned about Callahan's involvement with another casino project.
"The family is pursuing something. Mr. Callahan has always put the water district in front of whatever developments, projects or contracts. I see him as a strong advocate for the water district. It's not going to hinder the project," Ammann said.
Ammann said Palmer Water District No. 1 serves 4,700 customers with 1,400 accounts, approximately 450,000 to 490,000 gallons of water a day. With that use, Ammann said there is approximately 200,000 gallons a day of surplus water. Wholly inadequate to service a project of this size.
http://www.masslive.com/news/index.ssf/2013/05/palmer_water_commission_denies.html
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