Massachusetts Taxpayers Fund Palmer Casino Food Fight

Mohegan Sun sues landowner in Palmer

Seeks recovery of $22m investment

By Mark Arsenault

| Globe staff April 29, 2014
Connecticut gambling giant Mohegan Sun is suing a Palmer landowner to recover at least $22 million the company says it spent on its failed, five-year pursuit of a casino in the Western Massachusetts town, according to documents filed Monday in Hampden Superior Court.

The gambling company accuses Northeast Realty Associates, which controls the land where Mohegan had proposed a gambling resort, and Northeast’s manager, Leon Dragone, of breaking exclusivity deals with the casino developer, and also of undermining Mohegan’s casino referendum campaign, leading to its narrow defeat last November.

“More than just working separately from the Mohegan campaign, Dragone was a hindrance,” the company alleged.

The assertions are strikingly similar to accusations the landowner has levied against Mohegan Sun, in a lawsuit filed in February. Northeast Realty has accused Mohegan Sun of investigating a possible Boston-area casino while contractually committed to Palmer and then failing to try its best to win the Palmer referendum. The 94-vote failure of Mohegan Sun’s Palmer proposal was one of the bigger surprises in the state’s more than two-year effort to bring casinos to Massachusetts.

Shortly after the Palmer referendum failed, Mohegan Sun announced it had struck a deal with the Suffolk Downs racetrack to lease about 40 acres of racetrack land in Revere for a casino resort. The Revere casino proposal is now one of two finalists, along with a Wynn Resorts casino plan in Everett, for the sole Greater Boston resort casino license. The state gambling commission expects to choose a winner later this year.

Northeast, in February, asked the court for a judgment to forbid Mohegan Sun from pursuing a casino license for any property other than the Northeast site in Palmer.

In a counterclaim filed Monday, Mohegan Sun alleged “it is Northeast Realty and its affiliates, particularly Dragone,” who breached the agreements between the parties and caused the referendum to fail.

 

The agreements date back to 2008, three years before Massachusetts legalized Las Vegas-style casino gambling, according to the lawsuit. Mohegan Sun and Northeast signed several agreements, including an exclusivity deal that prohibited either side from “engaging in discussions or negotiations concerning the opening of any gaming facility in Massachusetts” other than on the Palmer site, according to court documents. Another agreement committed the parties to work together to get a law passed to legalize casino gambling and to develop a casino in Palmer.

Mohegan Sun alleges in its counterclaim that Northeast violated the exclusivity agreement by holding options to buy land in New Bedford that had been marketed for a casino and that Dragone or his representatives promoted the New Bedford site in discussions with casino companies other than Mohegan Sun.

The counterclaim also defends Mohegan Sun’s referendum campaign in Palmer and asserts Dragone undercut the campaign by running his own effort, in violation of the agreement to work together.

“Dragone and his supporters refused to act in coordination with the Mohegan-led campaign,” the company alleged. Dragone, the company said, “ignored the advice of the professionals hired by
Mohegan and expected the campaign to conform to his expectations of proper timing, believing, as he did throughout the campaign, that he knew best.”

The company said it is entitled to recover $22 million it invested in the Palmer venture.

Northeast Realty fired back at the company Monday: “Blaming others for their failures is a typical Mohegan Sun . . . response.” Mohegan Sun, through a spokesman, declined to comment beyond its legal filing.


http://www.bostonglobe.com/metro/2014/04/28/mohegan-sun-countersues-palmer-landowner-seeks-recovery-million-investment/p4DsWGNo78sqrvn2WJDGqM/story.html

 

Winners and Losers!

Let's not forget.....

Two communities won in the vote defeating well-funded machines and protecting their communities.

Elected officials, community leaders and Beacon Hill ignored voters when they promoted Predatory Gambling. Let's remember who they are and vote them out of office.....

after we REPEAL THE CASINO DEAL! and protect all communities in the Commonwealth!
If you haven't signed the Petition yet, download a copy from the website, have your friends and family sign and drop it in the mail! SIMPLE!

Let's get this done.



Nov 5, 2013, 9:49pm EST Updated: Nov 6, 2013, 8:35am EST

Here are the big winners and losers in the 'no casino' votes in East Boston and Palmer

Jon Chesto

Managing Editor, Print- Boston Business Journal

Voters in East Boston and Palmer just handed major defeats to the casino industry.

Palmer voters narrowly rejected Mohegan Sun’s longstanding plans to build a casino resort in that town. Meanwhile, voters in East Boston defeated a host community agreement that would have set the stage for a casino resort to be built at the Suffolk Downs horse track. (Revere voters, however, approved the Suffolk Downs agreement for their city.)

Here’s a rundown of the big winners and losers from those two votes:

The winners in Palmer

Quaboag Valley Against Casinos: The opposition group in Palmer didn't seem as loud as the one in East Boston. And yet the message obviously resonated with voters, giving the opponents a surprising win over a well-financed opponent.

MGM Resorts International: MGM and city leaders in Springfield are celebrating, for now. MGM’s plan is the last resort casino plan left standing in competition for the Western Massachusetts license. But questions still remain about whether MGM will clear the Mass. Gaming Commission’s strict background checks.

Foxwoods: This is also a big victory for Mohegan Sun’s biggest rival. The operators of the original Connecticut casino have proposed a casino resort in Milford, which falls into the Greater Boston license region per the 2011 state law that legalized casino gaming. But Palmer’s less than an hour’s drive from Milford. That’s close enough for gaming regulators to worry about the overlap in the two casinos’ target markets, overlap that would minimize the projects’ revenue potential.

The losers in Palmer

Mohegan Sun: No out-of-state gaming operation has been plugging away at building support for a casino in Massachusetts for longer than the Mohegan Tribal Gaming Authority. Mohegan opened an office in town back in 2009, two years before casino gambling was even made legal by the Legislature. It’s not necessarily over yet: Mohegan says it will push for a recount, citing the close vote and technical problems with a voting machine.

Leon Dragone: The Palmer property owner has been trying to land a casino deal for years, and the Mohegan Sun proposal for roughly 150 acres he owns off the Mass. Pike seemed like his best bet.

Palmer town officials: Budgeting would have become easy once the casino opened in town, as it would have essentially doubled the property tax base with $15 million in new annual payments. Now, officials will be hard-pressed to find new large taxpayers to take the place of the industry that has left this town.

The winners in East Boston

No Eastie Casino: The opposition group’s momentum certainly was building on the way to Tuesday’s victory during the past month or so. There was that coalition of clergy in East Boston that threw its weight behind the cause. And then there was the withdrawal of Caesars Entertainment, the company that was supposed to operate the casino, after a few red flags went up during the Mass. Gaming Commission’s background checks. With no new operator named, the owners of the Suffolk Downs track were suddenly put at a big disadvantage.

Steve Wynn: The Las Vegas mogul must be smiling tonight, even if he was just publicly carping about how hard it is to get by the gaming commission’s suitability reviews. Is he still serious about his plan to build a Wynn Resorts casino in Everett, one that had been poised to compete directly with Suffolk Downs for the sole Boston area gaming license? It’s hard to know for sure, after those complaints. But this vote could embolden him to plow forward.

Foxwoods: The rejection of Suffolk Downs, once considered the odds-on favorite for the Boston-area casino, also bodes well for Foxwoods and its plan for a Milford casino. However, that project has its own referendum to face on Nov. 19, and there’s a well-organized opposition group in Milford hell-bent on stopping the plan for a casino off I-495.

The losers in East Boston

Richard Fields: When Fields bought a significant stake in Sterling Suffolk Racecourse in 2007, he was essentially betting the farm that casinos would be approved in Massachusetts, and that one would go up at Suffolk Downs. Suffolk didn’t necessarily concede defeat today. Chief operating officer Chip Tuttle issued a brief statement thanking Revere for the positive vote — the Suffolk Downs property straddles the Revere-Boston border —and thanking the supporters in Eastie. The track owners, Tuttle said, will “reassess our plans.” But this vote essentially makes Fields’ dream of a Boston casino an improbable one, at best. (Revere Mayor Dan Rizzo is still hoping a reshaped project could be built on his side of the city line.)

Tom Menino: The departing mayor didn’t pick a side in the race to succeed him, but he did pick a side in the casino issue. Menino has trumpeted the economic benefits that the track had promised — at least $32 million in payments to the city, up to 4,000 permanent jobs, among other things. But in the end, Menino’s legendary political machine couldn’t generate enough support during the last election that he needed it.

The local thoroughbred industry: Suffolk Downs officials say the track has been losing money for several years. As New England’s last thoroughbred racetrack, the casino project was seen as crucial to propping up Suffolk Downs’ operations. If Suffolk should close, there would be significant ripple effects among the businesses that support it throughout the region and the nearly 1,500 people who work in that industry.

http://www.bizjournals.com/boston/blog/mass_roundup/2013/11/casino-votes-in-palmer-east-boston.html?page=all

The Palmer Boozerino!

Yup! 24/7/365!

Northeast Realty requests additional liquor licenses for Palmer property
By Lori Stabile, The RepublicanThe Republican
on July

Northeast Realty requests additional liquor licenses for Palmer property

Mohegan Sun releases four traffic options for proposed $1 billion resort casino in Palmer

Massachusetts State Police: Camper trailer rollover causing delays on Massachusetts Turnpike in Palmer

Palmer town councilor wants details on Mohegan Sun's traffic plans for proposed casino; Mohegan Sun says details will be released Wednesday

Palmer Town Council suspends balloon test for proposed casino hotel

PALMER — Northeast Realty has asked for additional liquor licenses as part of its development along Thorndike Street (Route 32) near Mohegan Sun's proposed resort casino site.

Town Council President Philip J. Hebert acknowledged the letter from Northeast Realty's lawyer, Stephen E. Spelman, at Monday's Town Council meeting.

The letter asks for two additional liquor licenses for phase 1 of its development project at Thorndike and Shearer streets, also known as the "triangle" area, and four additional liquor licenses as part of phase 2 of the project, which includes creating a lifestyle center on property adjoining the casino site.
Northeast is leasing 152 acres to Mohegan for the casino project.

Executive Assistant Andrew Golas said there are 38 liquor licenses in town – 20 for restaurants and bars and 18 for package stores. Town Manager Charles T. Blanchard said he believes the town is at its maximum for liquor licenses; the Legislature must be petitioned before additional licenses can be awarded.

Blanchard said the state Alcoholic Beverages Control Commission has been contacted to find out what the process is for granting additional licenses. He said this was done out of courtesy.

"We want to find out if we ever have an option to increase the number of licenses," Blanchard said.

"We're just looking into the situation. We're not saying we agree."

James L. St. Amand, Northeast's community liaison, said, "We want to be in a position to have economic development with or without a casino."

Leon Dragone

Northeast is in partnership with Cardinal's View of Grove Street, Worcester, for this development. Cardinal's View lists its resident agent as Thomas Cunningham and managers as Leon H. Dragone and Jeffrey E. Cunningham, according to filings with the Secretary of State's office. Dragone is the manager of Northeast Realty.

The former icehouse property on Shearer Street, targeted as part of Northeast's development, is owned by Cunningham Equities, according to town of Palmer property records. The head of Cunningham Equities, also based on Grove Street in Worcester, is Jeffrey Cunningham. Dragone said he owns a 50 percent stake in the old Rondeau property. Previously, the property was owned by another Cunningham business venture, KSJ Realty.

Dragone said Cunningham refurbished the HPAC building at 306 Race St., Holyoke, which is being used by the Sisters of Providence Health System, and also developed 18 units known as Cardinal's Ridge in Worcester.

Northeast is calling the development of this area "The Gateway to Western Massachusetts" and has announced plans for a Pride gas station and convenience store there, as well as restaurants and a medical office building. That development will take place on 20 acres abutting the turnpike exit 8.

Northeast also owns an additional 110 acres next to the casino site that it plans to develop as part of phase 2 of its project - that development will include a lifestyle center with a mixture of indoor and outdoor attractions, as well as retail shops and an outdoor skating rink. Dragone has said it will resemble "Downtown Disney."

The map below shows Thorndike and Shearer streets, also known as the "triangle" area, where Northeast Realty has asked for two additional liquor licenses for phase 1 of its development project near the proposed Mohegan Sun Massachusetts casino:


View Larger Map


http://www.masslive.com/news/index.ssf/2013/07/northeast_realty_requests_addi.html

 

Palmer: Paving Paradise

Watching the Malling of Palmer from a distance reveals the great loss and foolishness of short-sighted proponents who ignore the future, blinded by Fool's Gold.

For consideration --





They paved paradise
And put up a parking lot
With a pink hotel, a boutique
And a swinging hot spot

CATHEDRALS OF CONSUMPTION

By Grady Clay; Grady Clay, formerly editor of Landscape Architecture magazine, is the author of ''Close-Up: How to Read the American City.''

Published: February 17, 1985

 

They Paved Paradise

Northeast Realty announces agreement with Pride Stores to develop project in Palmer
By Lori Stabile, The RepublicanThe Republican
on June 21, 2013

Leon Dragone

PALMER - Springfield-based Pride Stores has signed an agreement with Northeast Realty Associates in conjunction with the development group Cardinal's View LLC to lease a portion of the property under Northeast's control that is adjacent to the Massachusetts Turnpike Exit 8 ramp.

"We are delighted to have Pride. ... I just think this is a significant milestone in that it's the beginning of the development of that triangle, and will be the first of many good announcements in the near term," Leon Dragone, Northeast's manager, said on Friday.

The property in question is part of the Thorndike-Shearer street corridor and is opposite the proposed 152-acre Mohegan Sun Massachusetts resort casino site on Route 32. Dragone said the Pride development is not contingent on a casino being built. Mohegan is one of three companies vying for the Western Massachusetts casino license.

Dragone said the development on the "triangle" property at Shearer and Thorndike streets is being called the "Gateway to Western Massachusetts." The site is approximately 20 acres, and Northeast has the properties under option, with the intent to purchase them. He said Northeast already has purchased the nearby former Rondeau icehouse property on Shearer Street. Northeast also hopes to develop another 110 acres abutting the casino site.

Kara Selen, leasing agent for Cardinal’s View, said in a statement, “The signing of an intent to develop in Palmer by an iconic Western Massachusetts brand such as Pride Stations is an indication that this site is prime for economic development serving Palmer. ...The Northeast-Cardinal’s View team believes development of this parcel fills a long-standing need and will only enhance the resort destination casino project should Mohegan Sun Massachusetts be successful in its application for the Western Massachusetts gaming license.”

Robert Bolduc, founder of Pride Stores, said in a statement that he is looking forward to working with the Northeast Group and the town of Palmer to develop the site. He said Pride's "latest state-of-the art fueling facility and convenience store" will be built there. Pride also has a gas station and convenience store at Thorndike and Park streets.

Dragone said the new Pride store, to be built on a 1 1/2 acre parcel, would resemble the one at the Ludlow turnpike exchange. Dragone said conversations with Planning Board members have already happened about the permitting process for this project.

http://www.masslive.com/news/index.ssf/2013/06/northeast_realty_announces_agr.html

Northeast Gaming, Picknelly feud continues

Palmer, Picknelly casino feud continues
Published : Monday, 21 Jan 2013, 9:40 AM EST

• Ryan Walsh, 22News Investigative Reporter

Regular Photo Size

PALMER, Mass. (WWLP) - The 22News I-Team discovered that the controversy surrounding Peter Picknelly's interest in two casinos is still hotly contested. A lawyer for Northeast Realty, which owns the land in Palmer where Mohegan Sun wants to build a casino says Picknelly and/or Penn National Gaming are not telling the whole truth regarding Picknelly's stake with the Northeast Gaming Group. They dispute the timeline of when Picknelly attempted to get his money out of the Northeast Gaming Group.

The Northeast Gaming Group saw something Penn National's Senior Vice President of Public Relations Eric Schippers said in a live chat on Masslive (Penn National Gaming and Masslive's parent company have a deal in place worth millions of dollars if Penn National is awarded the casino license) and are saying it is not accurate and they are providing the 22News I-Team with the documents to prove it.

In the live chat Schippers, responding to a question about Peter Picknelly's role in Palmer said, "We have thoroughly reviewed the claim and we view it as completely without merit. Our partner Peter Picknelly is 100% committed to Springfield, and cut any ties to Palmer long before we even arrived in Springfield. In my opinion, this amounts to a PR ploy to try to get the Palmer applicants back in the spotlight since so much attention has been paid to Springfield. We're confident this frivolous claim will have zero effect on our exciting plans for Hollywood Casino Springfield."

The portion in bold and that timeline is what Northeast Realty is disputing: In a statement sent to the 22News I-Team it reads:

According to Stephen Spelman, of Egan, Flanagan and Cohen P.C., attorney for Northeast Realty, owners of the property that would host the Mohegan Sun resort in Palmer, “The notion that Mr. Picknelly has cut ties to Palmer defies belief when in fact he has simply attempted to transfer his interest to a close business associate, Mr. Malcolm C. Getz, Jr. Mr. Picknelly has close ties to Mr. Getz through his longtime business relationship with him.” Mr. Getz has served as a senior executive at the Picknelly-owned gun distribution company Camfour, located in Westfield.

Spelman noted that Penn announced in a press release on October 11, 2012, “Penn National is working in partnership with Peter Picknelly.”

Spelman said, however, “Northeast was provided with a document dated November 1, 2012 that was a purported assignment of Mr. Picknelly’s shares in the Palmer project to Mr. Getz.

“Mr. Picknelly would like the public to believe that he has cut all ties with the Palmer project by attempting to assign his shares to a close associate. Mr. Schippers would like the public to believe that Mr. Picknelly cut those ties in advance of his partnership with Penn. Their own documents show these assertions are not true.

Spelman adds that legal action may be necessary. Earlier this month, Picknelly sent 22News this statement:

Statement from Peter Picknelly:

“Long before the legislature passed legislation, I did explore an opportunity with Northeast Gaming Group, as did many others. However, when the situation changed, I exercised my right to leave the project. I understand the transformational impact a casino could have on the city that I call home, and where my family has located our business for the past 80 years, and so I wanted to focus my efforts on Springfield.

The facts in this matter are simple. I was only an investor in the Palmer deal. I was never any type of partner or principal in the project nor did I take part in any of their planning. The contract I signed doesn’t contain a single word that limits my participation in other business ventures, gaming or otherwise. In any case, and to further ease any concerns, I have since formally terminated my relationship with Northeast Gaming Group and, have transferred any financial interest arising from my investment to a third party.

The legal assertions being made by Northeast Gaming Group are completely frivolous and smack of desperation. These claims are being made by an operator that is on the outside looking in, and whose primary objective is to protect their declining operations in Connecticut by preventing Springfield from hosting a successful casino. Their allegations should be viewed in that context."

http://www.wwlp.com/dpp/news/local/hampden/palmer-picknelly-casino-feud-continues 

Casino controversy lingers in Palmer

Picknelly, Palmer group dispute ongoing

Published : Monday, 21 Jan 2013, 6:02 PM EST

• Ryan Walsh, 22News Investigative Reporter

PALMER, Mass. (WWLP) - The casino controversy continues between Penn National Gaming's partner in Springfield and his former partners in Palmer.

The 22News I-Team has obtained new information.

Peter Picknelly is a partner with Penn National in Springfield's North End. They partnered this summer.

In 2008, Picknelly invested $500,000 with Northeast Realty, the group that owns the land in Palmer where Mohegan Sun wants to build a casino. This past July (2012), Picknelly asked for his money back; that request was denied. The lawyer for the group in Palmer told 22News when Picknelly partnered with Penn National he was still invested in Palmer and is still tied to that money today.

"His own documents show he was under revenue sharing as he was being promoted by penn national
as their 50-50 joint venture partner", says Attorney Stephen Spelman of Egan, Flanagan and Cohen, P.C.

Picknelly's lawyer is Paul Maleck of Doherty, Wallace, Pillsbury & Murphy, P.C.
"In 2011 he (Peter Picknelly) verbally told Leon Dragone that he is no longer interested in staying in Palmer and he was going to pursue his own casino", says Maleck.

Dragone is a partner with Northeast Realty. In November 2012, documents show Picknelly transferred that $500,000 to a longtime business associate, Malcolm Getz, to try and free himself from the Palmer casino deal.

"We've gotten a document from Palmer that shows that the attempted transfer to Mr. Getz didn't even happen until November 1st, after Mr. Picknelly has been announced as a joint venture partner with Penn National", says Spelman.

(What does Peter get out of signing over his money to Malcolm?)

"Like I said before Its an extra step that he took to show Northeast Gaming that he has absolutely no rights in Palmer", says Maleck.

22News then asked Maleck if Picknelly could profit off of the transfer of his $500,000 to Getz.

 http://www.wwlp.com/dpp/news/local/hampden/picknelly-palmer-group-dispute-ongoing

This from WSHM --

Controversy over Peter Picknelly's Palmer casino dealings
Posted: Jan 21, 2013 10:02 PM EST

By Cherise Leclerc - email

SPRINGFIELD, MA (WSHM) - Springfield businessman Peter Picknelly may be in the middle of a controversy surrounding two casino developers.

Northeast Realty, the owners of the Mohegan Sun Palmer property, say that in 2008, Picknelly became an investor in their project.

Picknelly's attorneys say that he transferred his involvement to a business associate. Now it is stirring controversy on both sides.

"Peter has nothing to do with Palmer," said Picknelly's attorney, Paul Maleck.

Maleck says that a 2008 agreement made with Northeast Realty as an investor is no longer valid after Picknelly reportedly "cut ties" with the group and pulled out of the project not long after joining forces with Penn National Gaming in Springfield.

"Peter had every right to exit, terminate all of his interests, he had signed a revenue sharing agreement where he was going to possibly partake in the revenues," Maleck said.

According to CBS 3 media partner Masslive and The Republican, Picknelly invested $500,000 into the Palmer project nearly five years ago.

On Nov. 1, 2012, Picknelly signed documents transferring his interests to close business associate Malcolm Getz.

But it's the timeline of events that's bothering Northeast Realty.

Reps for the group say that claims made by Picknelly that he cut ties well before his Penn National partnership are false.

"From their own documents that they provided to us, it shows that it was Nov. 1 after they had announced them as their joint venture partner on Oct.11," said Steve Spelman, attorney for Northeast Realty.

Spelman says that the document is useless and that Picknelly is still on board in Palmer as an investor.

"It is Northeast's position that Mr. Picknelly is a full joint venture partner with Palmer, he has been so under his revenue sharing agreement since Jan. 11, 2008, and his attempt to transfer it to Mr. Malcolm Getz has no force in effect," Spelman said.

Lawyers for Northeast Realty say that they are prepared to take Picknelly to court if he does not acknowledge his partnership in the project.

http://www.cbs3springfield.com/story/20643203/controversy-over-peter-picknellys-palmer-casino-dealings