One councilor asked if the town of Palmer could hold quarterly meetings with Mohegan Sun.
Mitchell G. Etess
PALMER - Mohegan Sun wants to be the first developer to open a resort casino in Massachusetts, but exact details of the project - its financial partner, and specific renderings - will remain confidential for now, representatives told the standing-room only crowd gathered in the Palmer High School library on Thursday night.
Mitchell G. Etess, chief executive officer of the Mohegan Tribal Gaming Authority, stressed that "a competition" is under way for the lone Western Massachusetts license, and that they do not want to jeopardize their chances by divulging too many details regarding their proposal.
Etess said Mohegan cannot afford, and Palmer cannot afford, to reveal even a small portion of its strategic advantage "by allowing our competitors knowledge that could only serve to help them and harm us."
The meeting was organized after casino supporters went to a Town Council meeting last month and presented a petition with 350 signatures asking for more details about the project, slated for 150 acres off Thorndike Street (Route 32).
Connecticut-based Mohegan first announced its plan to build a resort casino in Palmer in 2007, opening a downtown storefront two years later for the public to learn about the project. Casino gaming became legal in the commonwealth late last year.
Council President Paul E. Burns accepted questions for Mohegan via email, and he said he believes all were from Palmer residents. Sixty-two questions were submitted.
Most were asked, and those that weren't addressed were given to Mohegan to respond to later.
Many questions asked about plans for the facility, and if Mohegan has the financial capability to make it happen.
Etess spoke of Mohegan's commitment to the area, how it has spent $14 million to date on the $600 million project. He said Mohegan recently restructured its debt, and is negotiating with several potential investors regarding the project. Etess would not say if they have a partner already in place. He said the project would be 70 percent debt and 30 percent equity, with Mohegan and the financial partner comprising 30 percent.
"There seems to be this impression that we're behind, when really we're ahead," Etess said. "Is there any other company sitting down with their town tonight? No."
"I'm sure we're ahead of everybody in the west and perhaps everybody in the state," Paul I. Brody, Mohegan's vice president of development, said.
One resident wanted to know if the "flyover" ramp that would be built from the Massachusetts Turnpike to connect to the resort was even legal (Brody said yes).
The same resident asked if homes and businesses would be demolished to make room for the casino (no, they said). Others wanted to know if Mohegan is truly interested in Palmer, or if it is delaying the process to benefit its casino in Uncasville, Conn.
"We're doing everything we can. We disagree with that," Etess said.
"I'm flattered to think that someone thinks we can delay the commonwealth," Brody said.
Brody took some shots at the competition, saying "Brimfield is dead in the water. Holyoke is dead in the water."
MGM Resorts International backed out of Brimfield due to infrastructure problems. Hard Rock International of Florida and Paper City Development have targeted Wyckoff Country Club in Holyoke for a resort casino, but Holyoke Mayor Alex Morse is opposed to a gaming resort.
Brody also alluded to Ameristar Casinos, which bought land in Springfield off Page Boulevard for a casino, calling it a "congested" location, and said there might be more applicants interested in Westfield (Penn National Gaming) and Springfield, but nothing is definite.
Also this week, the Kraft Group announced that Wynn Resorts is halting plans to build a resort casino in Foxborough after Monday's election, in which residents voted in two anti-casino candidates for selectmen.
Etess and Brody maintained that they are in a position to comply with any process that the Gaming Commissions sets forth. They said they plan on continuing to lease the land from Northeast Realty, and do not intend to purchase it.
Brody said the entire project will be the 150 acres. He said they may have to draw some well water off property from an adjacent parcel - that would be the only off-site development. They said they also are talking with Palmer Water Department about water needs. Brody said security issues are being discussed in the mitigation agreement with the town, and that they would have a security team on site, and also would work with state and local police.
Etess said they have the best shot at the license for several reasons, including high brand recognition in the northeast.
"Being from New England is one of our biggest advantages in this competition," Etess said.
Charlotte Burns submitted questions regarding the "loss of quality of life" for residents, citing concerns about glare from the casino, traffic, population increases and the flight of the middle class, if Mohegan Sun is able to open a facility.
"That's not really a question," Brody said, "that's a political statement."
Brody said the casino will be positioned so it has the least possible impact, and that all light will be "down-focused." Traffic will be mitigated, he said.
"We can't build anything that you don't want to have here," Brody said, adding they will need to get a special permit from the town for the project.
Residents also will have their say in a binding referendum. Brody said all details - such as where the water will come from for the project - will be presented to the town prior to the referendum. Brody said they expect casino licenses to be issued by the Gaming Commission in 2014.
Etess said they also have no plans to "step aside" to make room for another developer, and are "in this to win it."
"I'm sorry to hear people are losing confidence in us," Etess said.
Councilor Mary A. Salzmann said impatience is growing because the project has been dragging on for four years. She asked if Mohegan could provide information on a regular basis.
Councilor Blake E. Lamothe suggested quarterly meetings with Mohegan.
Etess said there would be no benefit to handing in their application to the Gaming Commission early. Brody said they plan to hold their first job fair in Palmer.
After the meeting, David E. Whitney, who said he is for the 3,000 permanent jobs the casino would create, said he did not hear any discouraging news.
"It is a competitive process and I understand completely why they have to keep proprietary information to themselves," Whitney said.
Jennifer L. Baruffaldi, who head a pro-casino group, said she was concerned because Etess was not forthcoming about the issue of a financial partner. She said she is interested in the jobs and revenues a casino would bring to the town.
"I think this is too big for Palmer to lose. I still have my concerns, but I'm glad that they did come," Baruffaldi said.
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