Gaming panel’s staff has ties to casino hopefuls

FROM SHNS:

THE DEALERS: Some of the staff of the Gaming Commission, including its
counsel, admin director and ombudsman, have ties to some of the developers
looking to be awarded licenses to build casinos here. The Herald reviewed disclosures from the
staffers to find that it's not just chairman Steve
Crosby who has ties with one of the casino suitors. Commissioner Bruce Stebbins
disclosed that he received campaign contributions from Springfield bigwigs Frank
Fitzgerald and Peter Picknelly when he was on the City Council. Both Picknelly
and Fitzgerald are now involved in developing a casino for
Springfield.

 

 

 

 

Ethics disclosures by Gaming Commission employees show an agency rife with potential conflicts that go far beyond the much-publicized ties of Chairman Stephen Crosby, with several staffers linked to people in the hunt for coveted gaming licenses.

The disclosures show the commission’s head lawyer, administrative director and ombudsman, as well as Commissioner Bruce Stebbins, have had business or social relationships with people involved with companies seeking licenses, a Herald review found.

“Circumstantially, it doesn’t look good, I’ll say that much,” said Boston College professor Richard McGowan, a gaming expert who advised City Hall in its now-defunct deal with Caesars and Suffolk Downs. Caesars was spiked after the commission flagged Caesars’ contracting of a company owned in part by a man with rumored Russian mob ties. “They knocked down Caesars from getting a license because they had some contact with a guy. You’re always going to have some kind of connections.”

Caesars has sued Crosby over his past partnership with Paul Lohnes, an owner of the site of a proposed Wynn casino in Everett. Crosby, who has also disclosed a college friendship with Suffolk Downs owner Joe O’Donnell, recused himself from a vote on Wynn’s land deal.

“The Commission strongly encourages all employees to use an overabundance of caution in filing ethics disclosures,” said commission spokeswoman Elaine Driscoll. “Our staff has been remarkably diligent in their efforts to demonstrate our strong commitment to integrity and transparency. As we soon progress from the licensing phase into the regulatory phase of our operations, the Commission will continue to apply those high standards and maintain strict adherence to our Enhanced Code of Ethics.”

Other commission employees with similar ties include:

•    Director of Administration Eileen Glovsky, who testified at the corruption trial of former probation chief Jack O’Brien that she managed a patronage hire list as deputy state treasurer. She divulged a 10-year relationship with a former treasury attorney who represents two license applicants, and that she and her husband once belonged to the same Belmont country club as O’Donnell, though she says she doesn’t believe she ever met him. In her May filing, she anticipated an event at which O’Donnell may greet her husband and wrote, “I wanted to make sure there was no misunderstanding about this.”

•     General Counsel Catherine Blue, who disclosed that her daughter formerly worked at the Mintz Levin law firm under Peter Biagetti, who represents Wynn. (Mintz Levin also represents the Boston Herald.) “I do not and will not discuss my daughter with Mr. Biagetti,” Blue wrote in a March disclosure. As of June, Blue’s daughter was in the running for a job at Morgan Brown & Joy, a firm hired by the commission.

• Commissioner Stebbins, who disclosed receiving campaign contributions as a Springfield city councilor from Frank Fitzgerald, an attorney for MGM’s Springfield casino bid, and Peter Picknelly, an affiliate of the group behind the casino. “I don’t see anything that would preclude me or require me to recuse myself,” Stebbins told the Herald.

•     Ombudsman John Ziemba, who previously worked for a law firm that represents the Massachusetts Performing Arts Council, which he noted could receive mitigation money under the gaming law’s “impacted live entertainment venue” provision.

Steve Wynn was wrong when he condemned the Gam[bl]ing Commission earlier, yet this raises serious issues.

Gaming US investigators call MGM fit to operate Springfield casino

11/12/2013 07:22:00

 

 

Massachusetts investigators recommended that MGM Resorts be declared fit to operate a casino, capping a 10-month investigation into the background of the only remaining contender for the sole Western Massachusetts license, the Boston Globe reported yesterday.

The recommendation came with several conditions, including that MGM explain its business practices in Macau, China, and its association with a former board member convicted of illegal wiretapping and conspiracy. MGM executives answered the investigators’ questions at an all-day hearing Monday before the state gambling commission, the paper said.
According to the Globe, the investigators’ recommendation, however, is not binding on the commissioners, who are expected to issue a final decision on whether the company is suitable to hold a license in coming days. The commissioners did not convey which way they were leaning during the hearing, “although their questioning was not overly aggressive.”

The commission has said it intends to complete its approval process by awarding the resort licenses in the spring.

MGM owns 99 percent of the Springfield casino venture, and Springfield businessman Paul Picknelly owns 1 percent.
Last week, MGM chief executive Jim Murren told the Boston College Chief Executive’s Club that the company plans to hire 3,000 permanent workers and another 2,000 to build the USD800 million gambling and entertainment resort in downtown Springfield.

Where is that phony guarantee in writing????


On Monday, the commission released the findings of its Investigations and Enforcement Bureau background check, in a 500-page report. MGM executives spent most of Monday in a public hearing responding to the findings.
Commission investigators raised questions about the company’s interaction with Terry Christensen, who spent 18 years on the MGM board until he was indicted in 2006. He was later convicted of illegal wiretapping and conspiracy charges.

MGM has since changed its internal procedures to address concerns from regulators over the company’s involvement with Christensen.
The commission also pressed MGM on its operation in Macau, due to a state law that requires all applicants to maintain “responsible business practices” in any place they run a casino.
According to the Boston Globe, much of the testimony focused on the widespread practice in Macau of using “gaming promoters” to recruit patrons to play at the casinos.
“A paramount benefit offered by gaming promoters is the ability to extend credit to mainland Chinese players, which the casino will not do because gambling debts are not legally enforceable in China,” the report states.

“Under this system, MGM Macau has no corporate knowledge of what interest rate, if any, is charged or the manner in which debt collection is undertaken,’’ the report states.
Investigators also focused on the company’s relationship in Macau with businesswoman Pansy Ho, daughter of a Macau gambling mogul linked to organized crime, Stanley Ho. MGM’s relationship raised red flags with New Jersey regulators, who in 2009 issued a report recommending that Pansy Ho be found unsuitable, “mainly out of concerns that she was acting as a front for her father,” the report states.

Massachusetts investigators concluded: “There is no dispute about the fact that when MGM was negotiating the 2004 partnership deal with Pansy Ho, MGM did not conduct any investigation into her source of funds for the project; nor did MGM conduct any investigation into whether she was acting independently from her father.”


http://www.macaudailytimes.com.mo/macau/49132-gaming-us-investigators-call-mgm-fit-to-operate-springfield-casino.html

MGM ‘suitable’? Huh?

Investigators find MGM ‘suitable’ to build Springfield casino

By Mark Arsenault

| Globe Staff December 09, 2013

MGM Resorts International was given the seal of approval today by staff investigators for the Massachusetts gambling commission, marking a step forward for the single applicant for the sole Western Massachusetts casino license.

The conclusion by staff, however, is not binding on the five full-time commissioners themselves, who will issue a written decision within the next several days. This follows today’s public hearing, where MGM’s chief executive, Jim Murren, is detailing the company’s plans.

MGM owns 99 percent of the Springfield venture and Paul Picknelly owns 1 percent. Paul is the brother of Peter Picknelly, the owner of the Springfield-based Peter Pan bus line. Springfield voters endorsed the casino in July.

Last week, Murren told the Boston College Chief Executive’s Club that MGM plans to hire 3,000 people in Springfield, and another 2,000 to build an $800 million gambling and entertainment facility.

Related

• Coverage: Casinos in Mass.

 

As the hearing began at the Boston Convention and Exhibition Center, Commission Chairman Stephen Crosby did not respond directly to a Globe story on Sunday that raised questions about his ties to Paul Lohnes, co-owner of land in Everett where Wynn Casinos wants to build a $1.3 billion casino.

The Globe reported that Crosby has known since at least November 2012 that one of the people involved in the Everett casino bid was Lohnes, a former business partner, but did not publicly disclose the tie until late this year.

Crosby has announced he will not particulate in the commission’s Dec. 23 vote on the Everett casino land deal.

Crosby today joked that he was thrilled to read in the Sunday newspaper that Boston Red Sox first baseman Mike Napoli is returning to Boston.


http://www.bostonglobe.com/metro/2013/12/09/gaming-commission-staff-finds-mgm-resorts-suitable-build-springfield-casino-and-resort/JqvdZSyyGQbzQC6OZncTsM/story.html

 

Palmer casino developer's suit against Springfield businessman Peter Picknelly tossed out by judge

By Jeanette DeForge, The RepublicanThe Republican
Follow on Twitter
on June 03, 2013

SPRINGFIELD – A Hampden Superior Court judge dismissed a suit filed against city businessman Peter Picknelly which alleged he improperly walked away from a partnership in a proposed Palmer casino to join with a competing gaming group working in Springfield.

Judge Bertha D. Josephson ruled that there was little evidence filed that showed there was a formal partnership, joint venture or contract between Picknelly and Northeast Gaming Group Inc. and dismissed the suit in late May.

“I can say she was a very good and thorough judge and she made the exact right decision and wrote it out in a clear fashion,” said Jeffrey E. Poindexter, one of the lawyers with Bulkley, Richardson and Gelinas who represented Picknelly.

The case, filed by Northeast Gaming Group Inc., which owns the land in Palmer where Mohegan Sun hopes to build a casino, alleged Picknelly had invested $500,000 in the Palmer venture in January 2008 and signed an agreement that would give him a return of that investment of 3 percent of the group’s net ventures from the development of the gaming, entertainment and retail complex. The agreement gave him a right to request a refund of his initial investment two years after the agreement.

In November 2011 he also began discussions to open a transportation center on an adjacent piece of the property if the casino opened.

But later Picknelly walked away from the deal and joined Penn National in a partnership and proposed building a casino in the North End of Springfield.

“Northeast is disappointed. We thought we had a good case,” said Stephen E. Spelman, the Springfield lawyer who represented Northeast Gaming Group.

He said there have been no immediate discussions on appealing the decision yet.

“The issue is moot given that Penn was not selected,” Spelman said.

He could not comment on whether that could change if the company proposed opening a casino in another location in the state, saying he only represented the company in the suit.

In April, Mayor Domenic J. Sarno selected MGM Resorts as the preferred casino developer in Springfield over the Penn National project. MGM wants to build a resort in the South End.

He could not comment on whether that could change if the company proposed opening a casino in another location, saying he only represented the company in the suit. Penn National completed an application and submitted a $400,000 fee to the state Gaming Commission to become an accepted developer and, under that, is eligible to propose opening a casino anywhere in the state.

In her decision, Josephson ruled there was no real partnership between Picknelly and Northeast Gaming therefore there was no breech of contract or breech of fiduciary duty as claimed in the suit.

“The agreement imposed no other obligations on Picknelly who invested the $500,000 and made an official request for a refund in 2012,” Josephson ruled.

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

Picknelly lawsuit dismiss

Picknelly lawsuit dismissed

 

 

Updated: Monday, 03 Jun 2013, 5:11 PM EDT
Published : Monday, 03 Jun 2013, 3:18 PM EDT

• Ryan Walsh, 22News Investigative Reporter

SPRINGFIELD, Mass. (WWLP) - First on WWLP.com , Judge Bertha Josephson dismissed two lawsuits filed against Peter Picknelly and Penn National Gaming.

Northeast Gaming in Palmer believed Picknelly was still legally obligated to a $500,000 investment he made with their group in 2007. Northeast Gaming also claimed that Penn National Gaming played a role in Picknelly walking away from his investment in Palmer. Northeast Gaming owns the land Mohegan Sun wants to build on in Palmer.

Picknelly was a 50/50 partner with Penn National Gaming's proposed casino in Springfield. Springfield mayor Domenic Sarno has since selected MGM as the city's partner. In May, Picknelly told 22News that he would not work on another casino project outside of Springfield.

Judge Josephson heard the motion to dismiss the case in Hampden Superior Court on April 17th. She made her decision on Monday.

http://www.wwlp.com/dpp/news/i_team/picknelly-lawsuit-dismissed

 

Jilted Lover Pursues Picknelly

Picknelly jumped ship when he got a better offer.

Who can blame him?

Peter Picknelly Focal Point of Casino Lawsuit

April 17th, 2013

SPRINGFIELD, Mass. (WGGB) — Springfield businessman Peter Picknelly is the focal point of a lawsuit involving two casino developers.

Northeast Gaming which has ties to land in Palmer where Mohegan Sun wants to build a casino says Peter Picknelly has a deal with them.

In 2008, Picknelly invested $500,000 in the Palmer group’s venture.

Picknelly has since partnered up with Penn National to build a casino in Springfield’s North End.
Picknelly says he broke off all ties with the Palmer group, but they say no, that Picknelly is still bound legally to Palmer.

“Mr. Picknelly had a deal, a written deal, that he entered into with Northeast Gaming that he completely fulfilled all his obligations under that deal when he asked for his money back and was not given back, Mr. Picknelly completely divested himself of anything to do with the Palmer project in moving forward in Springfield,” says Attorney Michael Callan who represents Picknelly.

Attorney Stephen Spelman representing the Northeast Group painted a different picture in court.

“Mr. Picknelly was involved in Palmer from late 2007 all up to 2011 when he betrayed his partners in Palmer. He was involved in real estate development, he was involved with building an intermodal bus terminal and then what he did was attempt to transfer his interest to one of his employees, a Malcolm Getz,” says Spelman.

Judge Bertha Josephson took the arguments under advisement and says she’ll have a decision as soon as possible.

http://www.wggb.com/2013/04/17/peter-picknelly-focal-point-of-casino-lawsuit/

Court date set for Picknelly, Palmer dispute

Updated: Friday, 29 Mar 2013, 5:18 PM EDT
Published : Friday, 29 Mar 2013, 1:22 PM EDT

• Ryan Walsh, 22News Investigative Reporter

SPRINGFIELD, Mass. (WWLP) - The $500,000 dispute between Peter Picknelly and Northeast Gaming will be heard in court.

A judge will hear two motions to dismiss this case in Hampden County Superior Court on April 17th.

Northeast Gaming owns the land Mohegan Sun wants to build on in Palmer.
Peter Picknelly, owner of Peter Pan Bus Lines, had a $500,000 investment with that group, which his lawyers say he transferred to a longtime business partner, Malcolm Getz. Picknelly believes he is free and clear from that initial investment.

Northeast Gaming believes Picknelly is still legally obligated to that investment with their group.
Peter Picknelly is currently a 50/50 partner with Penn National Gaming, who is trying to bring a casino to Springfield's North End.

http://www.wwlp.com/dpp/news/i_team/court-date-set-for-picknelly-palmer-case

 

Peter Pan Threatens to Fly Away

Susan Van Pelt

'Kevin E. Kennedy, the city’s chief development officer, said it is “perfectly understandable” that Picknelly needs details on the future rent at Union Station, and needs to consider the reuse of his bus station.

“What is not understandable is: ‘if we don’t get the casino, I’m not moving,’” Kennedy said. “If that position is meant to push the process or somehow influence the process, it’s not proper.”'

http://www.masslive.com/news/index.ssf/2013/03/peter_picknelly_not_commited_t.html#incart_most-comments

 

Peter Picknelly: Without Springfield casino deal, all bets are off on Peter Pan Bus Lines’ move to Union Station

Peter Pan Bus Lines president Peter A. Picknelly, seen at a casino presentation in downtown Springfield last year, says he would not be committed to moving his company into the renovated Union Station if his casino project were not approved.

 

SPRINGFIELD – Peter Pan Bus Lines President Peter A. Picknelly said Friday that while he has fully supported a $78 million restoration of Union Station for years, he is not committed to moving his bus company there if his proposed casino project with Penn National Gaming is rejected.

Picknelly’s comments echoed comments he made Tuesday to the City Council and its casino site committee, to the surprise and disappointment of some officials and residents in attendance.

Picknelly said he is not about to leave his current bus headquarters on Main Street, directly across from Union Station, unless he has some viable reuse for the bus station at the corner of Main Street and Liberty Street.

“It’s a business decision,” Picknelly said. “You can’t expect us to leave this property where we have a mortgage, and go across the street where we would pay rent. No one would do that. There has to be a re-use for this property (bus station) for us to move over.” A casino would be the ideal use for the current bus station, Picknelly said, adding that he will definitely move to Union Station if the casino is approved.

Penn National and Picknelly are proposing an $807 million casino project includes the current bus station, The Republican newspaper site and some adjacent properties.

MGM Resorts International, which has proposed a competing casino project in the South End, has stated it will lease office space at Union Station if approved for a casino.

City Councilor Melvin Edwards, who asked Picknelly about his commitment to Union Station on Tuesday, said he was disappointed by the answer.

“I was disappointed he wasn’t willing to commit to us regardless if he got the casino,” Edwards said.

In addition, Peter Pan officials have spoken of their intent to move bus operations to Union Station multiple times, city officials said.

In one letter, dated March 12, 2012, Picknelly detailed his intent to be a partner at Union Station, including his plans to lease space and locate bus berths there. The lease plans preceded Penn National’s application for a casino license.

“Please accept this letter as evidence of Peter Pan Bus Lines’ interest in occupying approximately 26,100 square feet of interior building space at the proposed Union Station Regional Intermodal Transportation Center,” Picknelly said in the letter to Christopher Moskal, executive director of the Springfield Redevelopment Authority.

Picknelly, less than two weeks later, March 21, 2012, praised the Union Station project in a letter to Peter M. Rogoff, administrator of the Federal Transit Administration.

“A restored and operational Union Station, complete with new adjoining bus terminal, would transform the historic station into the region’s key interchange for regional and local bus service, high speed, intercity and regional rail; and taxi service,” Picknelly said in the letter.

Picknelly said Friday that he and his company have been involved in the plans and design of Union Station “from day one” and “we absolutely believe it’s an integral part of the Springfield renaissance.”

The future of the bus station property on Main Street, however, also needs to be addressed, “and the city needs to work with us on that re-use,” Picknelly said.

“The last thing Springfield needs is to have this piece of property abandoned,” Picknelly said. “It’s very logical. The city can’t want it either.”

Picknelly said the bus station block is large, possibly the largest privately owned block on Main Street.

The Pioneer Valley Transit Authority has also provided letters of intent to move its buses to Union Station.

Kevin E. Kennedy, the city’s chief development officer, said it is “perfectly understandable” that Picknelly needs details on the future rent at Union Station, and needs to consider the reuse of his bus station.

“What is not understandable is: ‘if we don’t get the casino, I’m not moving,’” Kennedy said. “If that position is meant to push the process or somehow influence the process, it’s not proper.”

The Massachusetts Gaming Commission will grant up to three casino licenses in the state including for one casino in Western Massachusetts. The commission will also approve one slots parlor, under state law.

In addition to Penn National and MGM Resorts, casinos are planned by Mohegan Sun in Palmer off the Massachusetts Turnpike, and one is proposed by Hard Rock International for West Springfield on the grounds of Eastern States Exposition.

Any casino needs approval from local officials, voters in the that community, and the Gaming Commission.

Kennedy said he would be “very disappointed” if Peter Pan pulled out of the Union Station project, but the project would remain viable and “we would move on and deal with the situation.”

Union Station Commitment Letters by masslive

Picknelly Food Fight Heads to Court

Northeast Gaming of Palmer sues Peter Picknelly, Penn National Gaming over Springfield casino deal

Penn National Gaming introduces their plans for a Springfield casino during a gala event at the Paramount Theater in downtown Springfield on Dec. 20, 2012. Shown here at the event are from left, Peter A. Picknelly, chief executive officer of Springfield-based Peter Pan Bus Lines; Peter M. Carlino, CEO of Penn National; and football celebrity Doug Flutie. (Republican Staff photo by Don Treeger)

                    

By Robert Rizzuto, The Republicanmasslive.com
on February 07, 2013

 

A local real estate group hoping to see its land become the site of the sole Western Massachusetts casino has filed a lawsuit against Penn National Gaming and Springfield businessman Peter Picknelly, alleging that he breached a contract with them by partnering to push another casino site.
Northeast Gaming Group Inc., an associate of Northeast Realty which owns the land in Palmer where Mohegan Sun hopes to build, is claiming its business plan was hurt when Picknelly walked away from a deal to partner with Penn National Gaming to develop a casino in the northern edge of downtown Springfield.

The lawsuit reiterates what Northeast Gaming's lawyer, Stephen Spelman said last month when he called on Picknelly to honor his original contract with the Palmer developers.

"Mr. Picknelly betrayed the Palmer venture by actively working against it with Penn National Gaming, even though at the same time he continued to keep his interest in the Palmer project," Spelman wrote in an email.

In 2008, Picknelly invested $500,000 in the Palmer group's venture and signed an agreement to give him a return on that investment of three percent of the group's net revenues from the development of the gaming, entertainment and retail complex, the lawsuit states.

A key point of contention to be settled by the courts is whether the revenue-sharing agreement constitutes a partnership, like Northeast Gaming alleges, or not.

The lawsuit also claims that Picknelly pushed Northeast Realty's manager Leon Dragone of Longmeadow to grant him a significant role in the venture, particularly a larger stake than his brother Paul held, prior to Paul Picknelly's move to team with MGM Resorts International to develop a casino in Springfield's South End.

The lawsuit contends that on Oct. 11, when Penn National announced its partnership with the CEO of Peter Pan Bus Lines, to develop a casino on land including the site of The Republican newspaper, he violated his original agreement by helping a direct competitor for the sole casino license.
Penn National Gaming is also listed as a defendant in the lawsuit for its alleged role as a partner with Peter Picknelly and the purported affect it had on the Palmer group's business proposition to build a rural casino.

One of Picknelly's lawyers, Michael Callan, said the lawsuit was "frivolous" and that they plan to file a counter-suit.

"This is extortionate and some of the most egregious charges in their lawsuit are based on a third-party's statements," Callan said. "It is outrageous, the slanderous things they are saying about Peter Picknelly. And for them to try to re-frame the revenue-sharing agreement as a partnership agreement is a cheap shot bordering on the unprofessional. We are not concerned about the claims made in this lawsuit at all."

Eric Schippers, senior vice president for public affairs at Penn National Gaming, added "To continue to press forward with such a frivolous case is unfortunate, and is a clear sign that this group has zero confidence in their ability to compete fairly for the Western Massachusetts casino license. As we've said before, we have thoroughly reviewed the matter and the underlying agreement, and find the claims to be without any legal merit whatsoever."

A copy of the lawsuit, as filed Thursday in Hampden Superior Court, can be seen below.
NE Gaming Group v Peter Picknelly and Penn Nat'l Gaming Complaint


http://www.masslive.com/politics/index.ssf/2013/02/peter_picknelly_sued_by_palmer.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

Gam[bl]ing Commission Deadline Approaches

Massachusetts gaming chairman expects 'robust competition' for casinos as application deadline approaches

By Dan Ring, The Republicanmasslive.com
on January 10, 2013 at 9:09 PM, updated January 11, 2013

 

BOSTON — The state's chief casino regulator said he is hoping for "robust competition" among casino companies when potential developers submit applications next week.

He added that it is "terrific" that Western Massachusetts could see a new casino proposal on Friday.
Companies face a 5 p.m. deadline on Tuesday for filing $400,000 nonrefundable application fee with the Massachusetts Gaming Commission, along with comprehensive and detailed materials. The submissions are for the commission's background checks on top employees, officers and business entities, representing the first step of a two-part bidding process for casinos.

Stephen CrosbyThe Republican photo by Don Treeger

 

So far, only Penn National Gaming and MGM Resorts International, which are planning competing casinos in downtown Springfield, have filed with the commission both the $400,000 fee and the supporting materials. Two additional companies -- the Suffolk Downs race track in Boston and its partner, Caesars Entertainment, plus the Plainridge Racecourse harness track in Plainville, which is bidding for a slots-only facility, -- have provided the $400,000 fee.

The chief executive officer of the Mohegan Sun, which is planning a casino in Palmer and was the first company to put its stake in the ground in Western Massachusetts, told The Republican last week that the company will meet the deadline for providing the $400,000 and package for background investigations by the commission.

Chairman Stephen P. Crosby said competition could help assure the best possible deal for the people of Massachusetts.

"It's just very simple," Crosby said after the commission's regular weekly meeting in Boston Thursday. "We really want to have robust competition for every license. If we have at least two competitors for every license, preferably more, we will think we have done a really important first step."

Crosby also said he welcomed a possible new entrant in the casino sweepstakes in Western Massachusetts. The Eastern States Exposition plans to hold a "red carpet" event on Friday to announce the results of it's "casino exploration."

Crosby said he has no inside information and has only read in the media that Hard Rock International could be the proposed developer for a casino on the Memorial Avenue grounds of the exposition.

"It's great, Crosby said. "I think it is terrific. It is an interesting site. We've always been encouraging Hard Rock. I encouraged Hard Rock to stick around and look hard. If they decide to be involved, that would be great."

A total of 11 companies, including Hard Rock, had earlier meetings with commission consultants to scope out the applications for background investigations.

In a phone interview on Thursday, Timothy J. Wilmott, chief operating officer and president of Penn National, said the company submitted "the exact same" materials to the commission and to the city of Springfield on Jan. 3.

The city is conducting its own casino-selection process. Penn National and MGM also paid $250,000 fees to Springfield in addition to the state fees.

Penn National, working in partnership with Peter A., Picknelly, chairman and CEO of Peter Pan Bus Lines, is planning $807 million resort in the North End of Springfield including on properties owned by The Republican and the bus company.

Wilmott said he expects the company will be found suitable by the state and that the background checks will assure public trust and confidence in casino developers.

"We're licensed in 20 different gaming jurisdictions," Wilmott said. "We're very familiar with the process."

Also in a phone interview, Michael Mathis, vice president of global gaming development at MGM Resorts International, also said he does not anticipate any problems with the gaming commission's background investigations.

"We're confident," Mathis said. "We've been through rigorous background checks many times in the past."

MGM is planning an $800 million casino on 10 to 15 acres in the South End of Springfield.

Bruce Stebbins, a former Springfield city councilor and member of the commission, said companies face "a hard and fast" deadline on Tuesday for submitting the fee and materials.

"I'm encouraged," Stebbins said. "We still continue to hear stories, thanks to our friends in the media, about where other possible projects may pop up. Generally, the commission is encouraged by the competition we have seen, as well as the level of investments some of these projects are talking about."

The $400,000 fee is for paying for the extensive investigations on the casino companies.

"We're going to be cooperative," Crosby said. "If you come in at the last minute, we will do everything we can to get you in under the wire, because competition is good. We want competition but the deadline is the deadline."

The commission hopes to decide by the end of June whether to approve the companies as suitable after the background investigations. If companies clear that hurdle, then they would submit specific development proposals for the projects they plan to construct. The commission plans to be prepared to accept those construction proposals sometime late this year and then award the first casino resort license sometime in February of next year.

Crosby said he is not concerned that only four companies have paid the fee to date.

"That doesn't mean anything to me," he said. "If it were me, I wouldn't put in the $400,000 until 4:59 that day. Why would I give my money to someone else?"

Crosby said it appears as if at least one other company will present a bid to rival Suffolk Downs in the Boston area.

Stephen A. Wynn, the CEO of Las Vegas-based Wynn Resorts, is eyeing a possible casino at an old industrial site in Everett and would compete with Suffolk Downs for a license.

"Wynn and Caesars are the ones that seem to be the farthest along," Crosby said. "They are both very substantial companies, powerful companies, powerful personalities. There would be a tremendous competition. We would be delighted if there were two."

The state's casino law provides for three licenses for large gambling resorts, with one license to be issued in each of three regions of the state. A slots-only license could be anywhere in the state.
No developer can offer a specific development site to the commission until the project has been ­approved by local voters in a referendum.

On Monday, the Springfield City Council, in a meeting to start at 7 p.m. at City Hall, will consider approving a citywide ballot vote on casino gambling.

Under the state's casino law, the state's three most populated cities, including Springfield , would have to hold a ward vote on a casino unless the governing body of a city chooses to put the question to all voters. Leaders in Springfield are expecting a city-wide vote.

The vote would need to be held at least 60 days after a casino company finalizes an agreement with a community. The vote in Springfield could be held as early as June or as late as November.

Also on Thursday, Karen M. Wells was announced as the commission's new, $145,000-a-year director of its investigations and enforcement bureau. Wells, a former assistant attorney general and deputy chief of the public protection, anti-terrorism, corruption and technology unit for the Middlesex District Attorney, has been an undersecretary at the state Executive Office of Public Safety and Security.

Staff writer Peter Goonan contributed to this story


http://www.masslive.com/politics/index.ssf/2013/01/massachusetts_expects_robust_c.html

Casino controversy lingers in Palmer - YouTube
With the state's casino deadline looming (January 15th), there are at least three casino developers who will attempt to win the Western Massachusetts casino ...
www.youtube.com/watch?v=r2dHPiEDTQA&list...

Casino controversy lingers in Palmer

Published : Wednesday, 02 Jan 2013

• Ryan Walsh

PALMER, Mass. (WWLP) - With the state's casino deadline looming (January 15th), there are at least three casino developers who will attempt to win the Western Massachusetts casino license.

22News found out that one major local investor has his money in two of those projects.

The 22News I-Team obtained a series of emails dating back to August between lawyers for the Northeast Gaming Group - Mohegan Sun Palmer's local investors and Peter Picknelly - Penn National's major local investor. The Northeast Gaming Group claims that Picknelly is still financially involved in their project.

Mohegan Sun's casino proposal in Palmer and Penn National's proposal in Springfield are separated by 20 miles, but linked together by one man. Peter Picknelly. A series of emails obtained by the 22News I-Team shows that Picknelly invested $500,000 with the Northeast Gaming Group. That is the group of local investors with ties to Mohegan Sun in Palmer. Stephen Spelman is an attorney representing the Northeast Gaming Group.

"What Northeast Group wants Mr. Picknelly to do is live up to his obligations under his investment.
Under Massachusetts law he has a duty of good faith and fair dealing. We're asking him to live up to that", says Attorney Spelman of Egan, Flanagan and Cohen, P.C.

Emails show that Peter Picknelly has been trying to get his $500,000 back from the Northeast Gaming Group since August.

"Following that he transferred or attempted to transfer his interest to a business associate of his in November of last year", says Attorney Spelman.

Peter Picknelly refused an interview but did send 22News this statement. In part it reads, the contract I signed doesn't contain a single word that limits my participation in other business ventures, gaming or otherwise.

Picknelly has since partnered with Penn National in Springfield's North End. The casino developer is standing behind Picknelly. We are well aware of the legal claims being made by Northeast Gaming Group. We find the claims to be without any legal merit whatsoever.

Spelman told 22News Picknelly has been working with the group in Palmer for five years and this disagreement has the potential to be settled in court.

"Unfortunately if Mr. Picknelly fails to live up to his obligations to Northeast, Northeast will have to seriously consider moving forward in superior court to seek the relief that it is entitled to", says Attorney Spelman.

The Massachusetts Gaming Commission told 22News they do not have an opinion on this situation and they hope it gets worked out locally.
Below is the full statement from Peter Picknelly & Penn National Gaming:
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."

Statement from Eric Schippers, Senior Vice President for Public Affairs at Penn National Gaming:

“We are well aware of the legal claims being made by Northeast Gaming Group, Inc. about our partner Peter Picknelly. We have thoroughly reviewed the matter and the underlying agreement, and find the claims to be without any legal merit whatsoever.”

http://www.wwlp.com/dpp/news/local/hampden/casino-controversy-lingers-in-palmer

Picknelly Food Fight

For two casino groups, a dispute over investor

By Mark Arsenault

| Globe Staff

 

Casino developers in Palmer and the North End of Springfield are in a sharp dispute over which project may claim businessman Peter Picknelly, head of Peter Pan Bus Lines, who initially invested in the Palmer venture before joining Penn National Gaming in an $807 million casino proposal in his hometown of Springfield.

While Picknelly insists he has separated from the Palmer deal, his former partners say he remains legally bound to the original project, and they threaten to sue to stop Picknelly from moving forward with Penn ­National in Springfield. The partners argue that losing such “a prominent, highly visible local and regional businessman” to a competing project will undermine the Palmer casino bid.

Penn’s Springfield casino proposal, meanwhile, has become intimately tied to Picknelly, and it is hard to imagine that project moving ahead without him. The casino is proposed for land occupied by the Peter Pan bus terminal, and Picknelly has said he will be a 50-percent partner in the ­development.
Picknelly and Penn National say he has no obligation to any other casino effort, and they have threatened litigation of their own if the Palmer group interferes with Picknelly’s pursuit of a casino license in Springfield.     

The dispute is laid out in a series of letters, obtained by the Globe, ­between lawyers for Picknelly and Penn National and representatives of Northeast Gaming Group, which owns land in Palmer where Mohegan Sun has proposed a gambling resort.

The Penn National and ­Mohegan projects would be in direct competition for the sole Western Massachusetts casino resort license. MGM Resorts is also seeking the license with a project planned for the South End of Springfield.

The state gambling commission is taking applications for development rights for up to three resort-style casinos, one each in three regions of the state. The commission hopes to issue licenses by early 2014.

Picknelly’s public connection to the Palmer project dates to 2008, when it was announced that he had invested in the effort to bring a gambling resort to the town, if casinos were legalized in the state. The Palmer group struck a deal with Mohegan Sun to develop a resort at the site, and the project was among the first ­serious contenders for a casino license when Massachusetts ­legalized Las Vegas-style gambling in 2011.

But last August, Picknelly informed Northeast Gaming that he intended to “disassociate” from the Palmer effort.

“Peter will be pursuing a ­casino license for an undetermined site in Springfield, and, by operation of law, he cannot have an interest in more than one casino license,” Picknelly’s lawyer wrote on Aug. 7 to Northeast.

The letter asked the group to return Picknelly’s $500,000 investment.

Over the summer, Picknelly emerged as the local development partner for the Penn ­National Springfield project.

Northeast refused to let him walk away, maintaining that their agreement remained in force, despite Picknelly’s intention to leave. The group wrote that Picknelly’s obligations ­under the 2008 agreement “do not permit him to simply abandon his venture with Northeast so that he can become a competitor.” Northeast also said Picknelly had access to proprietary business information about the Palmer effort, “which he apparently feels free to use in his competitor status.”

“His decision to abandon Northeast and his legal obligations is regrettable and will surely result in Superior Court litigation for injunctive relief” and damages, the group wrote.

Penn National responded through lawyers, calling the statements “frivolous” and “completely unfounded” and arguing that Picknelly’s 2008 agreement with Northeast only obligated Picknelly to provide investment capital, which he did.

“All of the remaining obligations under the agreement are those of Northeast Gaming, not Mr. Picknelly,” Penn wrote to Northeast, in a letter dated last Friday.

Picknelly has taken another step to try to separate from Palmer, signing an agreement assigning “all right, title, and interest” in the Palmer venture to a business associate, according to a copy of the agreement.

Northeast was unmoved and complained directly to Penn National chief executive officer Peter Carlino, insisting that “Penn National Gaming not aid and abet any effort by Mr. Picknelly to breach his ­fiduciary and contractual ­duties to Northeast.”

Picknelly said Monday by ­e-mail that he was traveling and would be available to comment later in the week. He told the Globe in a mid-December interview that he had ­“divorced . . . completely” from Palmer.

“I was never really that ­involved,” he said. “I was simply an investor in the land. I never had any intimate knowledge, never had a conversation with Mohegan Sun, never even saw the plans until the day I said I’m out, I’m pursuing something in Springfield.”

http://bostonglobe.com/metro/2013/01/01/developers-dispute-over-role-major-casino-investor/I75pPTi0WBjmadmwgeJozL/story.html

Tug Of War Over Picknelly

Developers in dispute over role of major casino investor

Springfield businessman wants out of palmer deal, backers say

By Mark Arsenault

Globe Staff / December 31, 2012

 

Casino developers in Palmer and the North End of Springfield are in a sharp dispute over which project may claim businessman Peter Picknelly, head of Peter Pan Bus Lines, who initially invested in the Palmer venture before joining Penn National Gaming in an $807 million casino proposal in his hometown of Springfield.

 

While Picknelly insists he has separated from the Palmer deal, his former partners say he remains legally bound to the original project, and they threaten to sue to stop Picknelly from moving forward with Penn ­National in Springfield. The partners argue that losing such “a prominent, highly visible local and regional businessman” to a competing project will undermine the Palmer casino bid.

Penn’s Springfield casino proposal, meanwhile, has become intimately tied to Picknelly, and it is hard to imagine that project moving ahead without him. The casino is proposed for land occupied by the Peter Pan bus terminal, and Picknelly has said he will be a 50-percent partner in the ­development.
 

Picknelly and Penn National say he has no obligation to any other casino effort, and they have threatened litigation of their own if the Palmer group interferes with Picknelly’s pursuit of a casino license in Springfield.
 

The dispute is laid out in a series of letters, obtained by the Globe, ­between lawyers for Picknelly and Penn National and representatives of Northeast Gaming Group, which owns land in Palmer where Mohegan Sun has proposed a gambling resort.
 

The Penn National and ­Mohegan projects would be in direct competition for the sole Western Massachusetts casino resort license. MGM Resorts is also seeking the license with a project planned for the South End of Springfield.

The state gambling commission is taking applications for development rights for up to three resort-style casinos, one each in three regions of the state. The commission hopes to issue licenses by early 2014.

Picknelly’s public connection to the Palmer project dates to 2008, when it was announced that he had invested in the effort to bring a gambling resort to the town, if casinos were legalized in the state. The Palmer group struck a deal with Mohegan Sun to develop a resort at the site, and the project was among the first ­serious contenders for a casino license when Massachusetts ­legalized Las Vegas-style gambling in 2011.

But last August, Picknelly informed Northeast Gaming that he intended to “disassociate” from the Palmer effort.
 

“Peter will be pursuing a ­casino license for an undetermined site in Springfield, and, by operation of law, he cannot have an interest in more than one casino license,” Picknelly’s lawyer wrote on Aug. 7 to Northeast.
 

The letter asked the group to return Picknelly’s $500,000 investment.

Over the summer, Picknelly emerged as the local development partner for the Penn ­National Springfield project.

Northeast refused to let him walk away, maintaining that their agreement remained in force, despite Picknelly’s intention to leave. The group wrote that Picknelly’s obligations ­under the 2008 agreement “do not permit him to simply abandon his venture with Northeast so that he can become a competitor.” Northeast also said Picknelly had access to proprietary business information about the Palmer effort, “which he apparently feels free to use in his competitor status.”

“His decision to abandon Northeast and his legal obligations is regrettable and will surely result in Superior Court litigation for injunctive relief” and damages, the group wrote.

Penn National responded through lawyers, calling the statements “frivolous” and “completely unfounded” and arguing that Picknelly’s 2008 agreement with Northeast only obligated Picknelly to provide investment capital, which he did.

“All of the remaining obligations under the agreement are those of Northeast Gaming, not Mr. Picknelly,” Penn wrote to Northeast, in a letter dated last Friday.

Picknelly has taken another step to try to separate from Palmer, signing an agreement assigning “all right, title, and interest” in the Palmer venture to a business associate, according to a copy of the agreement.

Northeast was unmoved and complained directly to Penn National chief executive officer Peter Carlino, insisting that “Penn National Gaming not aid and abet any effort by Mr. Picknelly to breach his ­fiduciary and contractual ­duties to Northeast.”

Picknelly said Monday by ­e-mail that he was traveling and would be available to comment later in the week. He told the Globe in a mid-December interview that he had ­“divorced . . . completely” from Palmer.

“I was never really that ­involved,” he said. “I was simply an investor in the land. I never had any intimate knowledge, never had a conversation with Mohegan Sun, never even saw the plans until the day I said I’m out, I’m pursuing something in Springfield.”

http://www.boston.com/news/local/massachusetts/2013/01/01/developers-dispute-over-role-major-casino-investor/orP26g5Qpb5T3Eb7bZBbgJ/story.html

Springfield City Councilors Astounds!

At no point have Springfield's leaders addressed the costs of Predatory Gambling - the Gambling Addiction, increased crime, the experiences of other communities, the financial condition of the developers, the destruction of local businesses.....

Springfield City Councilor Timothy Rooke shuns advice, seeks contact with casino companies

By Peter Goonan, The RepublicanThe Republican
on November 08, 2012

 

Timothy J. Rooke

SPRINGFIELD – City Councilor Timothy J. Rooke said this week that despite a warning from the city solicitor, he is inviting casino developers to contact him with information about their proposals.

Rooke said he wants as much advance information as possible from casino developers so that he can make the most informed vote when a casino agreement or more than one agreement is forwarded for council consideration by Mayor Domenic J. Sarno.

City Solicitor Edward M. Pikula, however, said in an email to councilors, that casino proposers “are prohibited from communicating directly with any city employee,” under the city’s formal request for casino proposals. The City Council members are city employees, he said.

Pikula said the three companies proposing a casino will be required to make a public presentation between Dec. 4 and Dec. 14, and the councilors can be present during those public meetings.

Council President James J. Ferrera III said he has met with casino developers and plans to continue those meetings to help them “navigate the process” to answer any of their questions, and to provide information to his constituents on a major economic development project.

“That’s my job as an elected official,” Ferrera said, adding that Pikula’s warning is Pikula’s opinion.
Rooke said the warning from Pikula amounts to a “gag order.”

“How can the legislative body of the city (the council) and a licensing agent of the casino process not be directly involved, approached or educated in our due diligence/fact finding efforts” Rooke said.

“My opinion is that if this ‘gag order’ was allowed it will give the false appearance that developers who are investing millions, if not billions of dollars would not have fair, equal and open access to the City Council decisions makers. That is not the case.”

Three casinos are being proposed in Springfield. Under state law, a single casino will be permitted in Western Massachusetts, and up to three casinos statewide. The council would need to approve any mayor-negotiated agreement with a casino developer and would approve any needed zone changes or special permits, officials said.

Proposed casinos in Springfield include: Ameristar, proposing a project at the former Westinghouse site in East Springfield; MGM Resorts, proposing a project in the South End; and Penn National, proposing a casino in the North End of the downtown corridor.

In addition, the owner of Mohegan Sun is proposing a casino in Palmer off the Massachusetts Turnpike.

Rooke said he has also suggested that in considering which casino proposal is the best for Springfield, that a “score card or matrix be used to weigh each economic development proposal on all objective issues.” Thus, each would be rated on objective criteria, he said.

“I am not, nor do I intend to let the largest economic development process in the city’s history to be made by a consultant, the economic development director or one elected official,” Rooke said. “Nor would I suspect that my colleagues on the City Council will allow this either.”

Pikula said the city’s consulting firm, Shefsky & Froelich of Chicago, plans another monthly meeting with the City Council on Nov. 14.

“Should a councilor feel a need to communicate with a proposer, the communication should be coordinated and vetted through the city’s consultant,” Pikula said in his email to councilors.

Ferrera said "we as councilors have a responsibility and obligation to ensure Springfield gets the best possible casino proposal or proposals to the Gaming Commission. I intend to be fully involved in the process."

http://www.masslive.com/news/index.ssf/2012/11/springfield_city_councilor_tim_7.html