Leominster, Slots Developer Reach Host Agreement
Leominster and Baltimore-based casino developer Cordish Cos. have reached an agreement that could make the Northern Worcester County city the site of the state's only slots parlor and provide it with nearly $4 million a year, Mayor Dean Mazzarella announced this morning.
Mazzarella made the announcement at a press conference, just days after saying he was working with the developer around the clock to draw up a host community agreement for the project, which would be a 125,000-square-foot facility with 1,250 slots games. The proposed site is on a 16-acre property off Route 117 near Interstate 190 on Jungle Road, down the street from Walmart.
City councilors said residents who attended an informational meeting Monday night were generally in favor of the project, citing the potential for jobs. Cordish has promised at least 500 full-time jobs with benefits in addition to 600 construction jobs with Leominster residents and union members getting preference in hiring.
Cordish did not have a representative at today's announcement.
Funding For The City
Accompanied at the announcement by Jonathan Silverstein, an attorney for the city, Mazzarella said Leominster would get the greater of 2 percent of the facility’s gross gaming revenue each year, or $3.8 million. The percentage minimum being a safeguard, he said.
“We didn’t want to be playing a spinning Roulette wheel,” he said, explaining that he anticipates high interest in the site when it initially opens, but that revenues could decrease down the road as competition changes. If revenues decline, the mayor said, Cordish’s contribution could be adjusted downward after five years. However, after 10 years, the company’s payment to the city would increase to 2.5 percent of revenues.
The $3.8-million minimum will come from property taxes on the site of about $1 million, an impact fee of $100,000 and an annual community benefit payment of $2.7 million.
Mazarella said he’s waiting for impact studies from city departments to be completed and for the City Council and financial departments to weigh in before determining exactly how the money will be spent, but he laid out general plans for it.
He said his top priority when negotiating the deal was giving tax relief to homeowners. That could mean exempting them from a certain amount of taxes.
“I think taxpayers of the city deserve some relief as a result of this project,” Mazzarella said.
The funding could also go toward accelerating improvements to the city’s Lancaster Street police station; filling fire, police and department of public works positions that were left vacant due to state budget cuts; resurfacing roads and sidewalks; paying down debt; and establishing an early childhood center. The funding would also be used to address issues determined by impact studies.
Impact On Local Business
Mazzarella said Cordish expects to purchase $25 million in goods and services from local vendors annually.
Cordish initially unveiled its plans to city councilors nearly two weeks ago. Councilors said the plan showed restaurants around the slots parlor with some that would be only for adults, while others beyond that area would be geared toward families. Cordish said the development will have room for expansion, including space for a hotel.
Mazzarella said he believes Leominster has done well to position itself as a destination for retail, dining and entertainment and that a slots parlor would complement those businesses. It will be part of the city’s job to help promote the downtown and region, he said, adding that he’s confident Leominster can maintain a small-town feel while having amenities that attract people to the city.
Other points of the agreement, which Mazzarella said he expected to sign today, have Cordish paying for all infrastructure improvements necessary to develop and build a police department substation. The company will also have to prepare a public safety plan with the city’s public safety departments.
Addressing concerns about problem gambling that some fear would come with a slots parlor, Cordish will be required to join and participate in the Massachusetts Partnership on Responsible Gambling. The company would have to educate employees on responsible gambling and provide similar information to patrons.
In order for the plan to move forward, Cordish must file a referendum request with the City Council, which would set a date for a citywide voter referendum within 60 to 90 days. If voters approve the project, Cordish must submit its final application to the state's Gaming Commission by Oct. 4.
For Cordish, the fourth time has proven to be a charm, as its previous proposals for slots parlors in Boxborough, Danvers and Salisbury were halted by selectmen in each community. The Leominster proposal is one of four vying for the state's only slots parlor license. The others are in Millbury, Plainville and Raynham.
Cordish has several development across the country, including two Hard Rock hotels and casinos in Florida and Maryland Live! Casino in Hanover, Md. Mazzarella said he will travel to the Maryland casino with public safety officials Friday.
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Image credit: FreeDigitalPhotos.net.
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