MGM Springfield and Ludlow Announce First Surrounding Community Agreement
Board of Selectmen unanimously endorses impact payment plan
LUDLOW (MA) - MGM Resorts International announced today that it has finalized the first surrounding community agreement for its MGM Springfield proposal with the Town of Ludlow. Last night, members of the town’s Board of Selectmen unanimously endorsed the agreement.
Mike Mathis, MGM Resorts Vice President of Global Gaming Development, said, “The first agreement is an important one. It has energized us, and demonstrates that with good communication and an open mind there is a way forward for all parties involved. We thank the Ludlow town leaders for their hard work and cooperation leading up to today."
The agreement will pay Ludlow $50,000 upfront and a minimum of $100,000 annually based on a third-party impact analysis. Collaboratively, MGM and designated surrounding communities will work to select a third-party analyst. Additionally, the agreement includes a look-back period on the 1st and 5th year anniversaries so that the actual impacts can be measured and addressed.
In addition to the mitigation dollars that have been agreed upon between Ludlow and MGM, the company will contribute, through state tax payments, to certain funds set up by the Massachusetts Gaming Law. Surrounding communities can go through the Massachusetts Gaming Commission to draw upon these funds for additional unforeseen impacts.
"The MGM team has been accessible and responsive to the concerns of our town,” said Ludlow Selectman Aaron Saunders. "Their follow through and professionalism allowed us to come to this agreement and feel good about the result.”
MGM has been working with officials from eight communities to better understand their questions and concerns around the MGM Springfield project. As a result of these meetings and communications, the MGM team hopes to come to similar agreements before their application is due on Dec. 31.
"Regardless of the number of competitors bidding for the Western Massachusetts gaming license, MGM has continued to work openly and diligently toward a surrounding community agreement for Ludlow," said Saunders. "We look forward to the day when we can call them neighbors."
Mathis added, "Like everything we have worked to accomplish during this project, we have given these surrounding community agreements our very best effort and consideration. In the coming weeks we hope to sign more agreements that further demonstrate our willingness to partner with communities in a fair and collaborative way."
MGM Springfield, an approximately $800 million resort, is proposed for 14.5 acres of land between Union and State streets, and Columbus Avenue and Main Street. MGM is seeking the sole gaming license in Western Massachusetts.
About MGM Resorts International (NYSE:MGM)
MGM Resorts International (NYSE: MGM) is one of the world's leading global hospitality companies, operating a peerless portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. In addition to its 51% interest in MGM China Holdings Limited, which owns the MGM Macau resort and casino, the Company has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in three other properties in Nevada and Illinois. One of those investments is CityCenter, an unprecedented urban resort destination on the Las Vegas Strip featuring its centerpiece ARIA Resort & Casino. Leveraging MGM Resorts' unmatched amenities, the M life loyalty program delivers one-of-a-kind experiences, insider privileges and personalized rewards for guests at the Company's renowned properties nationwide. Through its hospitality management subsidiary, the Company holds a growing number of development and management agreements for casino and non-casino resort projects around the world. MGM Resorts International supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its gaming properties. The Company has been honored with numerous awards and recognitions for its industry-leading Diversity Initiative, its community philanthropy programs and the Company's commitment to sustainable development and operations.
For more information about the company please visit www.mgmresorts.com