Citizens Against Casino Gaming asks Massachusetts Gaming Commission to investigate potential conflict of interest involving Palmer Water Commission chairman
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on June 13, 2013
Charles Callahan IIISPRINGFIELD - Citizens Against Casino Gaming is requesting that the Massachusetts Gaming Commission investigate a potential conflict of interest involving Palmer Water District No. 1's chairman of the water commissioners, Charles M. Callahan III, due to his family's involvement with the proposed MGM casino project downtown.
Because Callahan chairs a board that ultimately will vote on a water use agreement for a competing casino project, Mohegan Sun's proposed resort casino off Thorndike Street (Route 32), the anti-casino group wrote a letter dated June 12 asking the Gaming Commission to investigate. The State Ethics Commission was copied on the letter.
Hard Rock International in West Springfield also is vying for the lone Western Massachusetts casino license.
"It's a potential conflict and it should be fleshed out," Michael T. Kogut, a lawyer and chairman of the anti-casino group, said on Thursday.
Callahan is listed, along with his sister and brother, as having an interest in Blue Tarp reDevelopment LLC, the entity that has applied for the license to develop the MGM Resorts International casino in downtown Springfield.
Michael Kogut The Callahans are listed as "qualifiers" with Blue Tarp reDevelopment, according to the Gaming Commission. A qualifier could an officer, board member or key investor with a company, according to the commission, and they are subject to background checks.
A prepared statement from the anti-casino group states that Rolling Hills Estates Realty Trust, controlled by Callahan's brother David, "stands to reap 'enormous financial gains' if the MGM project is granted by the commission."
The letter states: “Should the Palmer Water District oppose the Palmer project, a reasonable person knowing the relevant facts would likely conclude that the decision was driven by Callahan’s interest in seeing the MGM project succeed at the expense of the Palmer project, during his tenure there.”
In the statement, the anti-casino group said “any claim that such a conflict was settled with Callahan’s decision to abstain from voting on certain matters before the Water District is disingenuous, at best.”
Elaine Driscoll, Gaming Commission spokeswoman, said the letter from Kogut's group has been passed along to the commission's investigation and enforcement division.
Callahan, reached on Thursday, declined comment.
Back in January, Callahan sent a letter to his fellow board members saying he would recuse himself from any votes involving casino gaming due to personal reasons.
Fellow Water Commissioner Joseph Mastalerz said Callahan has never spoken out against the Palmer casino project, and does not participate in any casino discussions.
Mastalerz said it would be impossible for Callahan to derail any Palmer casino project, as he will not have a vote. Mastalerz said that Palmer Water Superintendent James M. Ammann is the one who is in negotiations with Mohegan regarding water needs at the proposed casino site, and is bound by a confidentiality agreement.
Mastalerz said they are expecting to be briefed in a few weeks about everything that has been agreed upon. A host community agreement between the town and Mohegan may be ready next month.
http://www.masslive.com/news/index.ssf/2013/06/citizens_against_casino_gaming_3.html
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