Palmer town manager hosts second informational session on host community agreement with Mohegan Sun Massachusetts
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on October 15, 2013
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PALMER - What was supposed to be an informational session Tuesday night on the town's host community agreement with Mohegan Sun turned more into a platform for casino supporters and casino foes to voice their opinions.
This was the second informational session held by Town Manager Charles T. Blanchard on the host community agreement, which comes before voters on Nov. 5. Mohegan Sun, of Connecticut, is proposing a resort casino across from the Massachusetts Turnpike interchange on Thorndike Street (Route 32).
There was standing room only, and some people had to listen from the hallway.
Bondsville resident Joseph Miarecki brought up Miller Brewing Co., and how the company wanted to relocate to Palmer, but changed its mind after "little negative meetings like this."
Miarecki asked the people if they would be citing the same concerns if an IBM or General Motors wanted to relocate to town.
"I'd like to try and focus on the host community agreement," Blanchard said. "My charge was to negotiate a host community agreement and that's what we've done . . . This is the agreement that's moving forward. I'd like to keep it away from whether the casino is a good thing or a bad thing."
Michael Eagan, a member of Quaboag Valley Against Casinos, questioned Blanchard about the PILOT (payment in lieu of taxes) agreement for Mohegan.
Eagan said he did some calculating of his own, using the $1 billion project figure, and said Mohegan should be paying $17.9 million in taxes to the town. Under the PILOT, the annual guaranteed mitigation payment is $13.2 million, which will increase in the sixth year by no less than 1 percent and no greater than 2 percent of the prior year's annual mitigation payment.
"I'm sick and tired of large corporations and businesses not paying their fair share of taxes," Eagan said.
Blanchard said Eagan was not presenting things correctly, as the $1 billion figure represents the overall investment. Not everything is taxable, Blanchard said.
He said that the project would only generate $9 million or $9.5 million, using the current tax rate, and said one of the reasons they started discussing a PILOT was to increase the annual mitigation number, and get closer to communities that have split tax rates for residences and businesses, like Springfield, where MGM Resorts wants to build a casino in the South End.
Palmer only has one tax rate for all property classes.
Blanchard said the Town Council would have to implement a split tax rate this year, and it would have to stay in place two years before it could be eliminated in the event Palmer did not receive the license.
Casino supporter Robert Young said a split rate would affect business owners negatively, as it would double their taxes. Young said the PILOT program is a "huge windfall" for Palmer.
Blanchard said the annual mitigation payment Mohegan is paying Palmer is $15.2 million, plus .25 percent of gross gaming revenue up to $400 million.
Eagan said later that he felt the town should be "getting a lot more money" from Mohegan.
If Mohegan wins the license, it expects to build the project within 27 months, Blanchard said. Young said the casino is a "win-win situation" for a lot of people, and said it represents progress.
Eagan asked what will happen if Mohegan's traffic plans "don't work out as they should. Who pays the additional cost?"
Blanchard said the agreement could be reopened to address any infrastructure impacts at Mohegan's cost.
Irene F. Webb said she was concerned that the mitigation money would fund only eight more police officers, and asked if they would be enough to deal with the casino issues. The casino is expected to attract 10,000 to 12,000 visitors a day, close to the entire population of Palmer.
Casino supporter James L. St. Amand said if someone had a question on the host community agreement he wanted to hear it.
"I think pretty much the people in this room have their minds made up," St. Amand said.
Blanchard told the crowd that he felt it was a good agreement, but in the end, it's their decision how they want to vote on it.
The meeting ended with a resounding round of applause.
After the meeting, Blanchard said he thought it went well, and that it was nice to hear everyone's views.
The next informational session is scheduled for Oct. 29 from 6 to 7:30 p.m. at the Town Building.
The first session held by Blanchard was dominated by the anti-casino group.
http://www.masslive.com/news/index.ssf/2013/10/palmer_town_manager_hosts_seco.html
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