PALMER - Mohegan Sun wants to end its exclusive casino agreement with Northeast Realty but continue to lease the 152 acres on Thorndike Street (Route 32), making it unavailable for other economic or casino development, Northeast representatives said Thursday.
The news comes amid several calls for Mohegan to answer to rumors that the Connecticut-based company may be involved in talks with Suffolk Downs for its Revere casino proposal, even though
a recount of the failed Palmer vote has not yet been held.
The recount is slated for Tuesday.
"Clearly if Mohegan is trying to void the exclusivity agreement, they clearly have interest somewhere else in Massachusetts," At-large Town Councilor Paul E. Burns said.
Burns said it is "insulting" to Palmer to "come in here and run the kind of campaign they did and walk away and try to hold that land forever," a move that could prevent economic development, or another casino company from coming in.
Mohegan signed a 99-year lease with Northeast on the 152 acres in 2008, with the hope that it could build a resort casino there. But voters on Nov. 5 rejected the casino by less than 100 votes.
A statement issued by Northeast reads in part: "It is unfortunate that Mohegan Sun is abandoning the people of Palmer just days before the recount of the recent referendum, so that it can continue to negotiate a possible deal in another locale in Massachusetts, now that those negotiations have come to light through press reports.
"Mohegan’s pursuit of a license in the Eastern Massachusetts zone is at odds with their long-held position that Palmer represents the best location for a resort casino in the Commonwealth of Massachusetts. It also violated the exclusivity agreement between the parties."
But the company on Tuesday issued a statement in response to Burns' concerns about Suffolk, calling his statements false, inappropriate and hurtful.
Leon H. Dragone, Northeast's manager, wants to know if Mohegan was engaged in discussions or negotiations with Suffolk before the Nov. 5 vote.
"I think that would call into question the integrity of their management of the campaign," Dragone said.
Sources close to Northeast said Mohegan could give 90 days notice to get out of the lease.
A Suffolk representative said their goal is to identify a new gaming partner by the end of the month.
Chip Tuttle, chief operating officer of Suffolk Downs, confirmed on Thursday that Mohegan Sun is among several companies that have discussed partnering with Suffolk Downs on a revised casino proposal in Revere.
The release from Northeast, which came from Paul Robbins Associates, blasts Mohegan, saying the pursuit of another license in Revere "represents another demonstration of Mohegan's pattern of underperformance relating to the town of Palmer and its citizens."
It notes that while Mohegan was the first applicant to establish a presence in Western Massachusetts and pledged to be the first to have a host community agreement and referendum, it "supplied the required $400,000 application fee at the eleventh hour" and was slow to reveal casino project details despite requests to do so by town officials and citizens.
“Mohegan was among the last to finalize a host community agreement, after publicly promising to be the first. They were among the last to bring the agreement to voters. Unlike their counterpart applicants, they did not seek community input in Palmer or engage the people of Palmer in the design of their proposed resort.
“At the end of the day, Mohegan was slow to act and seemingly more interested in protecting their flagship casino in Connecticut than vigorously pursuing the Palmer project. Now, with the Palmer vote still undetermined they appear anxious to apply through a host community agreement and referendum that they did not have to win on their own," Northeast's release states.
The release also stated that during the negotiations with Northeast on the Palmer land lease, Northeast was aware of reports that Mohegan was actively looking at other venues in Massachusetts, and that Mohegan paid former mayor Michael Albano as a consultant during this period and continued to pay him as a consultant until he took office as a Governor’s Councilor.
"It is unclear what Mr. Albano’s role with Mohegan Sun was during the period of time he was paid as their consultant in Massachusetts, but it is very clear he was not involved in the Palmer referendum campaign,” Robbins added in the statement, citing the alleged arrangement as another example of Mohegan’s duplicity.
Albano, of Longmeadow, was elected to the Governor’s Council in 2011. Recently, he won
a $10,000 contract with the town of East Longmeadow to advise municipal officials on the potential impact on the community if an MGM resort casino is located in Springfield.
In response, Albano said, “I haven’t seen Paul Robbins in 12 years, and if I have it wasn’t that memorable of a meeting but I now understand now why he left political consulting,” refusing further comment.
Albano previously denied having been compensated by Mohegan or any related entity.
Officials for the casino company and the tribe did not return calls for comment.
Citizens for Jobs and Growth in Palmer, a pro-casino group, released a letter sent to the Mohegan Tribal Council this week that was signed by 24 people asking Mohegan to adjust the host community agreement to reflect "core groups in town, like the teachers" and to continue to negotiate with surrounding communities.
Jennifer L. Baruffaldi, a spokeswoman for the group, said they still want to see a casino project happen at that site, and would support another casino operator coming in. She said she is concerned about Mohegan being involved with Suffolk Downs.
"If they started courting somebody else, it's like leaving a bride at the altar," Baruffaldi said.
Staff writer Stephanie Barry and the Associated Press contributed to this report.
This is a developing story that will be updated as our reporting continues.
http://www.masslive.com/news/index.ssf/2013/11/northeast_realty_mohegan_sun_w.html
Company of the Month: Finard Properties marches forth - A trademark style of doing business
Boston, MA While the news that the residents of Palmer, Mass. had (slimly) voted down Mohegan Sun Casino's proposal for a world-class destination casino resort came as a disappointment to Todd Finard, the ambitious CEO of Finard Properties, the Boston-based, commercial real estate development company in partnership with Mohegan, didn't miss a beat. The next day, he and Mitchell Etess, CEO of the Mohegan Tribal Gaming authority, were meeting to discuss the possibility of keeping their partnership in tact - all while awaiting the re-count of the Palmer vote, which was scheduled later in the month. With a solid and sound partnership in place, Finard and Mohegan wasted no time mourning the potential defeat in Palmer, and instead scheduled a trip to Pennsylvania to tour Mohegan's existing operation in the Poconos.
"Finard Properties is and has been successful because we see opportunity, first and foremost - and we see a tremendous opportunity in continuing a strong partnership with Mohegan Sun," said Finard.
"We are excited to get back to the table and are optimistic that down the road, we can work together to develop a premiere tourist destination in the State of Massachusetts."
"There isn't a better, more experienced and more successful retail developer than Finard Properties," said Etess. "The portfolio of hugely successful Finard Properties' developments is spread literally throughout every corner of New England and beyond. Their creativity and expertise is a huge asset to our continued pursuit of a casino complex in Massachusetts."
This "march forth" style of doing business is trademark Finard and is one of the reasons for the company's impressive growth since its humble beginnings.
Founded in the 1950s, Murray Finard recognized an opportunity to simplify the shopping experience for the masses that were migrating to suburbia: he put all the stores under one roof. It wasn't long before shopping centers were a cornerstone of just about every town in America.
In the 1970s, Murray was joined in the business by his son Bill, who carried the company to the next level by adding new property development /property management components and evolving strategically with an ever-shifting demographic and the continuing influx of new technology. His son, Todd, came aboard in 1996; his son-in-law, Robert Hughes, also joined the company in 2007.
Now three generation out, the company is aggressively pursuing growth, yet firmly adhering to its core values of integrity and forthright business practices - and the pride that comes with the fact that the company bears the family name. Characterized by innovation, insight, creative out-of-the-box thinking and good old-fashioned hard work, Finard Properties "marches forth" with its commitment to identify new opportunities for growth and constantly evolve into new markets and into new marketplaces.
As CEO, Todd Finard is responsible for the strategic planning and ongoing growth of the company's portfolio. He has outlined a carefully-executed plan for expansion - one which includes bringing in capital for projects they have on the table. Finard recognizes that the company's projections for an accelerated growth trajectory require that they actively court institutional investors and joint equity partners. "In exchange for access to capital, we offer great yields," said Finard. "We have targeted projects that, once developed, marketed and managed correctly will very likely exceed conservative estimates for return. We have a portfolio of properties that our market analysis tells us should be developed."
Finard also spearheaded the company's move into downtown Boston in 2011. "We saw the upside to being closer to our financial partners," he said.
While their short term goal is to finalize a deal with Mohegan Sun, Finard Properties remains focused and committed to the properties they own and manage in all sectors.
Hospitality
Formed in 2011, Finard Coventry Hotel Management merged the talents of Finard Properties with those of Coventry Hotel Associates and offers a full spectrum of services for the hospitality industry - from acquisition and development to operations, franchisor relations, asset management, strategic sales/marketing plans and consulting. FCHM currently owns and/or manages: The Harbor Hotel, Provincetown, Mass.; The Sundance Resort, Sundance, UT; The Providence Biltmore (which is currently undergoing a $13 million restoration in a joint venture with Angelo, Gordon & Company) and has recently announced their newest project: a 170-room Residence Inn at the New England Executive Park in Burlington, Mass. Groundbreaking is set for the summer of 2014.
Retail
In the mid-1980s, the First National Bank of Boston approached William Finard about taking over two under-performing shopping malls in Memphis, Tenn. If this born and bred New Englander felt out of place in the South, it didn't show; Finard turned both into successful retail assets. Finard Properties is still at it: the company recently razed a portion of one of the complexes and has just completed the construction of an 85,000 s/f Kroger's, a strong anchor for the newly refurbished shopping center. "This is just one example of how the company has its finger on the pulse of the properties we own and/or manage," said Todd Finard. "In this case, the property had reached the point where it could go one of two ways. It was 30 or 40-years-old and needed to be recreated to be vital and profitable. We are constantly evaluating the landscape of the markets we are in and the markets where we see as emerging. This is another way to spot opportunity and remain active in competitive markets."
The University Mall in South Burlington, Vt. is another major, retail redevelopment project that is on Finard's white board. The largest enclosed mall in the state, the complex is a classic 1980s mall, according to Finard. The company is considering the future evolution of the mall, one that will keep it exciting to shoppers and attractive to tenants.
Office
Finard Properties' portfolio of office complexes includes sites in New England and Tennessee. As with all the properties they own and manage, Finard is ready to spring into action when market conditions dictate a change. Take for instance One Monument Square in downtown Portland, Me. When this 10-story, 124,000 s/f office building lost its key tenant last year, Finard recognized the need to refurbish the 1970s design in order to be competitive and attract the right mix of long-term tenants. Along with the major renovation, the building was rebranded, renamed (Square One) and is now nearly fully occupied.
Three generations have successfully steered Finard Properties from owning one humble shopping center to owning, managing and developing an impressive portfolio of properties in nearly every sector of commercial real estate. They are, for sure, a company to watch for generations to come.
http://nerej.com/67460
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