The publisher of The Republican confirmed that the newspaper received a written proposal from two companies that would like to develop a casino on the site.
Brothers Paul, left, and Peter Picknelly, are negotiating to buy properties in Springfield that could be used for a casino.
It could be brother versus brother in a bid to build a possible downtown casino in Springfield.
Peter A. Picknelly, chairman and CEO of Peter Pan Bus Lines, is proposing a casino for the North End of Springfield. Last week, he was involved with submitting an offer to The Republican for an option on The Republican's 1860 Main St. building and other property.
His brother, Paul C. Picknelly , president of Monarch Enterprises in Springfield and a hotel owner and operator, has met with several city councilors in Springfield to discuss a proposal to develop a casino in the South End of the city.
It's unclear if either brother is in partnership yet with a casino operator or whether it's financially or otherwise viable to build a casino in the downtown of the state's third most populated city.
Neither brother could be reached for comment.
The state's casino law is designed to create a kind of competition that is emerging in Western Massachusetts for a casino.
Robert Schwarz, Executive Vice President of OPAL Real Estate Group, which is owned by Peter Picknelly, declined comment except to issue a statement indicating the group has been in talks with casino operators.
"Approximately two years ago, the OPAL Real Estate Group was formed to explore economic development opportunities which would create jobs and generate tax dollars in the City of Springfield and throughout the region.
As a result, we have been contacted by several casino operators interested in properties we own or control.
Any plan put forth will contribute to the economic, social and cultural revitalization of the City of Springfield and the region," said the statement.
View Springfield's North End casino proposal: The real estate puzzle in a larger map
In the map above, parcels in GREEN show land owned by business entities owned or managed by Peter Picknelly. Parcels in RED show land owned by The Republican Company. Parcels in BROWN show additional land adjacent to the casino proposal. Click on a parcel for additional information, including acreage and assessed value. (Map and research by Greg Saulmon | The Republican).
When questioned by a reporter, George Arwady, publisher and CEO of The Republican, confirmed that The Republican received a written proposal last week from two companies associated with Peter Picknelly. The two companies would like to develop a casino on the site, according to Arwady.
The proposal is for an option to buy The Republican's Main Street building and property, as well as the newspaper's eight vacant acres on the Connecticut River.
Arwady said The Republican has not responded to the option offer but is considering it. He said The Republican still needs to analyze the complicated offer.
Arwady declined to discuss certain details such as the name of the casino company.
Arwady sent a notice to all employees of The Republican, saying that the newspaper will continue with balanced coverage of the competing proposals for casinos in Western Massachusetts. [Read the full note below.]
To avoid the appearance of a possible conflict, Arwady said he would remove himself and business management from coverage of the story. Wayne E. Phaneuf, executive editor, will oversee coverage and won't be given any suggestions, criticism or feedback from himself or business managers, Arwady said.
The newspaper will write no editorials for or against any possible casino site, he said.
The option offer includes proposals for funds for The Republican to re-locate its offices and build a new production facility.
The current printing press would not be used in a new production facility, if one were built. Instead, a nearly identical printing press, currently idle in Michigan, would be brought to a new facility in Springfield and put into operation before current equipment were shut down, according to Arwady.
After that point, the current press would be removed and available for sale or other use.
Earlier, a different company proposed an agreement that could have led to an option on The Republican properties for a casino, but it never led to an option.
Peter Picknelly's casino proposal could also include an option on the former Kittredge Equipment Supply Co. building on East Columbus Avenue behind The Republican building.
The bid by Paul Picknelly in the South End is already stirring up residents who fear that it might require the moving of the minimum-security Western Massachusetts Correctional Alcohol Center on Howard Street to a property on Mill Street. A web site was created to oppose the idea.
Springfield City Council President James J. Ferrera III said he met with Paul Picknelly about a month ago to discuss a host of issues including the possibility of a casino in the city's South End.
The proposal might involve buying different properties. "That's a big undertaking," Ferrera said.
Ferrera, a member of Springfield's 15-member Casino Site Committee, said he told Picknelly he is keeping an open mind on all casino proposals at this point.
Zaida Luna, the Ward 1 member of the City Council, said she also met with Paul Picknelly, along with City Councilor Kateri B. Walsh and they talked about a casino. She said she is looking for the best proposal for the city.
"Anything is possible," Luna said when asked about a casino in the South End.
Luna, also a member of the casino site panel, said she is concerned with the possibility of moving the minimum-security facility operated by Hampden Sheriff Michael J. Ashe.
Richard J.McCarthy , a spokesman for Ashe, said today there are no plans to move the Howard Street regional correctional facility to Mill Street. The jail has been on Howard Street since 1986.
Ameristar Casinos of Las Vegas is planning a casino resort for 41 acres off Page Boulevard, about four miles or so from the downtown.
Ameristar officials have said they looked in downtown Springfield for a possible casino site but they said it was too complicated and would involve the purchase of several buildings.
The Mohegan Sun is planning a casino in Palmer. There is speculation that a fourth proposal for a casino in Springfield could also surface. Both Hard Rock Cafe and MGM
Resorts International have been mentioned as having an interest in the city.
Message to employees of The Republican
The Republican Co. Publisher and CEO George Arwady sent the following message to newspaper employees Wednesday regarding the casino proposal:
To Everyone:
The newspaper has been approached by several parties over the past several months about the possibility of optioning all or part of our property in Springfield for a future casino and hotel project.
A partnership associated with the owner of the Peter Pan Bus Company made a proposal last week to option all of The Republican's property in downtown Springfield, both the main facility and vacant land that we own near the river.
We are considering the proposal, but we have not responded. An article about this probably will go up on MassLive this afternoon and be in tomorrow’s paper.
The newspaper will not become an investor or equity partner in any casino projects. We are not in the casino business, and are not interested in becoming part of it. We are in this instance a property owner, pure and simple, with an offer in hand from someone wanting to buy our property.
The option offer includes proposed funds to relocate locally the newspaper's production facilities and office employees, in the event the Peter Pan partnership eventually secures the casino license for Western Massachusetts. If this were to happen, we would plan to move our operations to comparable or better facilities.
If you have not been following the casino story closely, the Massachusetts Gaming Commission is planning to award one single license – probably in 2014 -- for all of Western Massachusetts. We have published news stories about a number of potential competing sites in a variety of communities, including the City of Springfield. There is consideration of at least three potential sites within the city limits. Before any casino developer can even apply for the one license, it must negotiate a contract with the host community and obtain local voter approval.
The newspaper will continue its balanced news coverage of the various competing efforts to win that license, and Executive Editor Wayne Phaneuf will direct that reporting without any suggestions, criticism or feedback from the publisher or any other members of the newspaper's business management. The newspaper's own editorials will continue to avoid taking a position for or against this or any other particular casino site or developer.
The paper, however, will continue to welcome letters to the editor from the public, expressing opinions for or against any aspect of the news developments.
If anyone has any concerns or questions about this, please feel free to ask me directly or discuss with your supervisor.
-- George