As part of the casino development, City Council President James Ferrera said, MGM would seek to purchase the vacant, city-owned South End Community Center and the former Alfred Zanetti School.
The former Zanetti School at 29 Howard St. in the South End of Springfield would be among properties MGM Resorts International would seek to purchase for a casino.SPRINGFIELD — Two city officials said this week that MGM Resorts International is interested in buying both public and private property in the South End, generally between Main Street and East Columbus Avenue, for a proposed casino, hotel and parking garage.
The area, at least three blocks in size, is along Interstate 91 and generally between State and Union streets, said City Council President James J. Ferrera III.
As part of the casino development, Ferrera said, MGM would seek to purchase the vacant, city-owned South End Community Center and the former Alfred Zanetti School, both severely damaged and left in partial rubble by the tornado of June 1, 2011. The city, however, would need to advertise for proposals for the two buildings, and is not yet seeking competitive bids, officials said.
A second city official, asking not to be identified, said he also is aware of MGM’s interest in that area of the South End, and said that even a larger area is being considered.
MGM officials have repeatedly declined comment on any specific site for a casino. On Wednesday, an MGM spokesman said an announcement is expected in a couple of weeks, and there was no further comment Thursday.
Ferrera stated two weeks ago that the South End corridor was being targeted by MGM, but provided some additional details this week. The added information included that the area would be on the west side of Main Street, between Main Street and East Columbus Avenue, but the specific area would be determined by the successful purchase of properties.
James FerreraFerrera said he was told by MGM that they have options to buy most of the private properties in the area. Ferrera, who appointed a Casino Site Committee in Springfield to help evaluate casino proposals, said he has personally met with representatives of MGM, Ameristar Casinos and Hard Rock International regarding their interest in Springfield.
As part of the discussions, MGM revealed an interest in having a skywalk created to link that side of Main Street near State Street with the nearby MassMutual Center, and in having a parking garage on East Columbus Avenue, Ferrera said.
Several property owners in the affected area of the South End were contacted for comment Thursday by The Republican, but did not return telephone calls.
Frank Colaccino, president of The Colvest Group, which owns the Berkshire Bank headquarters on East Columbus Avenue, said he has not been contacted by any casino group regarding any sale agreement for that commercial property.
Paul C. Picknelly, president of Monarch Enterprises in Springfield and a hotel owner and operator who is believed to be collaborating with MGM, has not returned telephone calls.
The city had attempted to find a buyer for the vacant Zanetti School building in fall 2010, and selected a preferred developer planning a charter school, officials said. That development effort failed, and the preferred developer status expired just prior to last year’s tornado.
Ferrera said he was told that the proposed hotel would have roughly 250 rooms and would be on the lower, west end of State Street.
Under state law, up to three casinos will be allowed in Massachusetts, including one in Western Massachusetts.
There are at least four casino proposals in Springfield, including the South End, the North End, the downtown center and in East Springfield.
Peter A. Picknelly, chairman and chief executive officer of Peter Pan Bus Lines, and the brother of Paul Picknelly, is proposing a casino in the North End and was involved with submitting an offer to The Republican for an option to buy The Republican’s 1860 Main St. building and property.
Kevin Kennedy, the city’s chief development officer, recently revealed that there is a proposal for a casino in the middle of the downtown district, but that he could not disclose the specific location, nor the identity of the developers.
The city has one formal proposal for a casino. Ameristar Casinos has purchased the former Westinghouse property on Page Boulevard in East Springfield for $16 million, and has cleared the 41-acre parcel for its proposed casino.
The Mohegan Sun is planning a casino in Palmer off the Massachusetts Turnpike, and there has been talk of casinos in Westfield, Holyoke and Chicopee.
In May, Westfield Mayor Daniel M. Knapik reported that two gaming firms had expressed interest in property previously targeted for a $400 million Pavilion Mall project adjacent to the Massachusetts Turnpike in the city’s Northside. Penn National and Hard Rock had expressed interest in the 280-acre site.
MGM and other casino companies on Thursday passed up the chance to file initial applications for a state license on Thursday, the first day the applications were available from the Massachusetts Gaming Commission.
Only one company – the Plainridge Racecourse in Plainville – wrote out a check for a $400,000 nonrefundable application fee to the commission, along with a two-page certification form and some supporting documents, according to Elaine B. Driscoll, director of communications for the commission. The payment makes a company an official applicant, shows its local community that it is serious and allows it to meet with state agencies to discuss permits.
The commission plans to use the application fee to pay the costs of hiring a private firm to investigate the finances and ethics of the company, its affiliates and close associates.
Also, a minimum of $50,000 of the fee will be used to reimburse municipalities that would host a casino or would surround a casino located in an adjacent community. The $50,000, which would be a total for host and surrounding communities for one project, will help pay for the cost of determining the impact of the company’s proposed development and for negotiating agreements.
Plainridge, which offers live harness racing in the southeast part of the state, is applying for a sole license for a slot parlor, which can have up to 1,250 slot machines.
Companies still have plenty of time to pay the fee and file preliminary applications, which will be much more extensive than just the two-page certification form. No deadline has been set yet to file preliminary applications, but it may not be until the end of the year.
Staff reporter Dan Ring contributed to this report.