The MGM Springfield casino is planned to have up to 3,000 slot machines and a 294-room hotel.
After working behind the scenes to help bring MGM Resorts International to Springfield, businessman Paul C. Picknelly may have hit the jackpot.
Picknelly, the owner and operator of two major hotels and a giant commercial building in downtown Springfield, owns 1 percent of MGM-Springfield, the downtown casino planned by the Las Vegas-based company.
A resident of Hampden, he is the only other owner of the planned casino project besides MGM and stands to be a big local financial winner if the casino is built.
Paul C. Picknelly smiles during a victory rally in Springfield on July 16 to celebrate voter approval of MGM Springfield.Michael S. Gordon/The Republican file
The estimated $800 million casino, planned for 10 to 15 acres in the South End of Springfield across from the MassMutual Center, is poised to receive a major boost on Monday.
The five-member Massachusetts Gaming Commission is scheduled to release a decision on whether MGM is suitable to apply for a casino license in Springfield. If commission members follow the recommendation of their investigators, MGM would be cleared to seek the license with certain conditions.
Picknelly declined to provide an interview for this story and has not commented on the casino when reached by The Republican in the past.
Stephen P. Crosby, chairman of the gaming commission, said he did not recall any suitability issues raised about Paul Picknelly during the commission's Dec. 9 hearing on MGM.
"It would make sense that you would have partial local ownership," Crosby said. "I think it is probably good in principle. One of the whole ideas was economic development in Massachusetts and to create wealth in Massachusetts."
Picknelly was a partner in a company, Blue Tarp reDevelopment, that signed a letter of intent with MGM in March of last year, according to a redacted commission background report on MGM's bid. The casino plan was kept under wraps until a formal announcement in August of last year.
It's unclear how much money Paul Picknelly would make but he would receive a perpetual annual share of revenues from the casino as well as payments if the project hits several milestones, according to the background report.
Paul Picknelly's brother, Peter A. Picknelly, CEO and chairman of Peter Pan Bus Lines and a former rival of his brother for a casino in Springfield, said the MGM casino is "a huge opportunity" for Springfield.
"I'm happy for him," Peter Picknelly said of his brother. "I'm pleased for him."
Peter Picknelly was a partner with Penn National Gaming, which planned a casino in the North End of downtown Springfield, including on properties owned by The Republican.
He said he is now working on a transportation plan with MGM and some real estate opportunities with the casino company.
In a city competition, Springfield Mayor Domenic J. Sarno choose MGM over Penn National in April. Fifty-eight percent of city voters approved the MGM casino in a ballot question on July 16.
"They came up with a better plan, but there is certainly no hard feelings," said Peter Picknelly.
He said he and his brother had "a business disagreement" about the best location for a casino in Springfield, a project long supported by their late father, Peter L. Picknelly, who died in 2004.
He said he talks with his brother weekly and e-mails daily. Each brother has a minority interest in businesses led by the other, he said.
In the background report on MGM's ethics and finances, investigators said they found no "derogatory information" about Paul Picknelly that could affect his suitability for licensure with the commission.
The report said Picknelly's finances are complex. Investigators said they needed "numerous discussions" with Picknelly and his team to develop a complete picture about his deal with MGM.
In the fall of 2011, Paul Picknelly and partners sought to put together parcels of real estate for a casino in Springfield, according to the background report. Picknelly told investigators that he helped retain a gaming consultant which marketed Springfield to MGM after it initially chose a site in Brimfield.
In March of last year, MGM said it intended to purchase most of Blue Tarp.
The company agreed to pay Picknelly and three other members a perpetual annual payment from revenues from the Springfield casino, the report said. MGM would also provide payments for "milestones," including upon acquiring certain parcels, when the casino is licensed and when it opens to the public, the report said.
The other members of Blue Tarp -- lawyer Thomas D. Murphy Jr., Francis J. Cataldo Jr., a real estate investor, and Springfield businessman Heriberto Flores -- no longer have ownership interests in Blue Tarp.
Flores resigned with no apparent compensation from Blue Tarp and joined the Penn National bid, according to the report.
Murphy and Cataldo sold their interests to Picknelly several months after MGM bought Blue Tarp. Picknelly assumed the risks if MGM's bid fails and became the sole remaining member to partner with MGM, the report said.
Through his real estate companies, Cataldo also has negotiated options to sell at least a half dozen properties to MGM if the project moves forward, the report said.
Paul Picknelly, who was born and raised in Springfield with his brother and their sister, Mary Jean, attended Holyoke Community College, but he did not receive a degree.
At 18, he was working in the family business and rose to senior vice president and chief operating officer at Peter Pan Bus Lines in 1994, MGM said in a filing with the city.
He owns at least 5 percent of 15 businesses including Peter Pan Bus Lines, the commission's report said.
Picknelly owns and operates the 325-room Sheraton Hotel and the Hilton Garden Inn, both in Springfield, according to a report filed by MGM with the city.
He is also owner and operator of Monarch Place, a 25-story downtown office building that includes the Sheraton and is the largest commercial real estate project in the state outside Boston, according to the MGM filing.
Bruce Stebbins, a member of the gaming commission and former Springfield City Councilor and business development administrator for the city, said he knows Picknelly from when he was on the council and a city administrator.
In order to dispel a possible conflict, Stebbins said he disclosed his "interactions" with both Picknelly brothers to Gov. Deval Patrick, Attorney General Martha Coakley and Treasurer Steve Grossman, who jointly appointed Stebbins to the commission. Stebbins said he participated in the suitability decision on MGM.
When he was development administrator, Stebbins said, for example, that Paul Picknelly showed him some improvements he planned to the Sheraton. He was not seeking city funds, Stebbins said.
In a prepared statement, Paul Picknelly said in part that he spoke with a lot of casino operators, but MGM offered the best vision for revitalizing downtown Springfield.
"I felt like my job as a native son of Springfield was to find a partner who shared my vision and the vision of many of my friends and colleagues," he stated. "Once I met MGM's team, early last year, I was confident they could take it from there."
Carole Brennan, spokeswoman for MGM Springfield, also released a statement saying in part, "From day one of meeting Paul, MGM's leadership team was in sync with him on an MGM Springfield vision that both helped rebuild the tornado-devastated section of downtown Springfield and offered the best economic development plan for the entire city."
The casino is planned to have up to 3,000 slot machines and a 294-room hotel. The project is expected to create 2,000 construction jobs and 3,000 permanent jobs.
Kevin E. Kennedy, chief development officer for Springfield, said it's great that the planned casino will have a small percent of local ownership.
"He's a very good businessman," Kennedy said of Paul Picknelly. "He's been very active in all things Springfield."