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July 16, 2013

Mazzarella: Leominster Closing In On Slots Agreement

Casino developer Cordish Cos. and Leominster Mayor Dean Mazzarella said they're making progress on negotiating a host agreement for a slots parlor in the city.

The morning after an informational meeting between Leominster city councilors, Maryland-based Cordish and Leominster residents on the 1,250-slot development proposed for construction off Route 117 near I-195, Mazzarella said he expects to complete a host agreement with Cordish within a week.

"Do I think we can do this project and do it well? I think we can," Mazzarella said.

Mazzarella said he's been working around the clock with Cordish to draw up a host agreement that is beneficial to Leominster.

Mazzarella must produce a host agreement and the City Council must then vote to set a date to put it on the ballot for city-wide vote, before Cordish can move forward with its proposal. It is vying for the state's single slots parlor license, and is up against proposals from other developers in Millbury, Plainville and Raynham.

Mazzarella said he is still "getting educated" on Cordish's plans. He and Leominster public safety officials will travel to Maryland Friday to tour Cordish's casino facility there. Meanwhile, Cordish President Joseph Weinberg said in an e-mail that progress continues.

"We have had very constructive discussions and the negotiations are ongoing," Weinberg said.

The plan presented to city councilors at the first informational meeting a week ago included building a facility that would house 1,250 slots games, creating between 500 and 700 full-time jobs with benefits.

Cordish has said it expects to spend an estimated $200 million on the project.

Some residents spoke out against the project at the initial meeting last week, but the larger crowd that attended Monday's meeting was generally in favor of the project, according to city councilors.

Ward 1 Councilor David Rowlands said construction union representatives were particularly vocal in their support of the project because of the potential for job creation.

Rowlands said he has very high expectations for the host agreement, because Cordish is up against a tight timetable and has few options for slots parlor sites left.

"It better be extremely beneficial to Leominster," Rowlands said, citing new tax revenue, tax relief and job creation as important components to the agreement. He noted that Mazzarella has sole discretion over the agreement.

If the City Council approves the agreement between the developer and mayor, the citywide referendum would be held 60 to 90 days after. If voters approve the project, Cordish would have until Oct. 4 to submit its final application to the gaming commission.

Mazzarella said negotiating a mechanism for property tax relief for city residents will be the most important part of the host agreement, though he did not discuss what it might look like.

Mazzarella said he is not a gambler, but is putting his personal feelings aside as he tries to consider what is best for Leominster. He said he is not surprised that Cordish landed there, given the city's pro-business stance, solid infrastructure and highway accessibility.

"I knew it was just a matter of time before they came here," Mazzarella said.

As for the support Leominster residents showed at Monday's meeting, which Mazzarella did not attend but watched on television, he said he believes they have faith the city is capable of balancing quality of life with economic development.

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