Milford Businesses Withhold Excitement Over Casino Plan
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An artist's rendering of the Foxwoods casino development plan in Milford. The proposal, signed by selectmen, includes a “best efforts” provision to spend $50 million in local goods.
Among the myriad offers Foxwoods casino developers have made to Milford and its neighbors in exchange for permission to build a billion-dollar destination casino in town — a proposal that's anything but certain, given competitors' plans for Everett and Boston — is a commitment to use “best efforts” to spend about $50 million on locally procured goods and services.
That assurance is outlined in the host agreement between Milford selectmen and Foxwoods, which was finalized Sept. 4 and signed by selectmen last week. But whether that benefit, or any, would befall businesses in the Milford area if Foxwoods is awarded the state's only gaming license depends on who you ask.
Foxwoods' proposal, which has generated buzz in Milford for about five years but only came before the town in the form of a presentation in June, has generated fierce opposition as well as enthusiasm from Milford residents, business owners and officials this summer.
The project heated up when Foxwoods CEO Scott Butera introduced an expanded version of the plan to selectmen two weeks ago, under pressure from the town to produce a proposal that rivals the size of those in Everett and Boston. Butera believes the project is a frontrunner, but it seems locals will believe it when they see it.
“I think everybody right now is kind of skeptical that Milford will be the one getting the nod since you have two Boston locations that are pretty prominently represented,” said Steve Gordon, general manager of the DoubleTree by Hilton Boston/Milford, which supports the project.
While some in the hospitality industry see a mixed-use casino that includes restaurants and hotels as a threat to their businesses, Gordon sees it as an opportunity for the DoubleTree, which mainly serves weekday business clients, to grow its weekend business. He also believes having a casino in town will appeal to existing business customers who might take clients there.
But Gordon said that until a town-wide referendum pushes the Foxwoods Massachusetts plan forward, the business community isn't getting too excited about potential benefits or particular commitments Foxwoods is making.
Stephen Oakes, a spokesman for Foxwoods Massachusetts, said it's no surprise that the business community is taking a wait-and-see approach. He acknowledged the lengthy road ahead, between receiving approval in a town-wide vote and convincing the Massachusetts Gaming Commission that its proposal is the best.
But Oakes said Foxwoods believes the Milford site is a leading contender because it's more accessible than the busy cities of Boston and Everett, and he said Foxwoods, which owns and operates the casino in Mashantucket, Conn., that bears its name, has eyed the Milford site for years.
Little Response To Survey
In July, Gordon was among 15 area business leaders who responded to an e-mail survey conducted by the Milford Chamber of Commerce that asked for opinions on whether a casino would help or hurt the local economy.
Chamber President Barry Feingold hoped a sizable sampling of the chamber's 500-plus members from 10 area towns would respond and inform him to take a casino position on behalf of the area business community. But he said the 15 responses, which were a mix of positive, negative and uncertain opinions, were too few to render a stance.
Feingold believes many business leaders have formed opinions but don't want to take a position until an outcome is apparent. He said those who support it don't want to burn bridges with those who are against it, while those who oppose it don't want to burn bridges with Foxwoods if it wins the license.
At the same time, the chamber's board of directors has openly discussed the potential for a casino in town for three years, according to Feingold. At the least, he said it's exciting to think about how a $1 billion-dollar development along Route 16 and just off Interstate 495 could impact the local economy.
“We are very interested and very excited about the potential for the investment,” Feingold said, though he added that concerns about how it will impact town services and infrastructure are justified.
To that end, Foxwoods has committed to paying the town millions of dollars in upfront and annual payments, including specified amounts for departments that would be impacted by the jump in out-of-towners the casino would draw. According to the host agreement, Milford would receive $32 million up front when construction is complete, plus $31 million annually afterward.
Buckley: Business Commitment Not Enforceable
The terms of the agreement to funnel money to Milford are binding, but Foxwoods' plans for boosting the local economy are more informal. The estimated $50 million Foxwoods said it would attempt to award to area businesses may come to fruition, but Foxwoods is only agreeing to use its “best efforts,” so nothing is promised. Foxwoods estimates it will create about 3,500 jobs and give hiring preference to those living within a 50-mile radius of the casino. But the actual number of jobs that would be created won't be known until the project is complete, which could be another three years.
William Buckley, chairman of Milford's board of selectmen and the most skeptical of the three selectmen about the proposed casino, said there's really no way for the town to enforce these aspects of the host agreement, but he hopes Foxwoods will make good on its commitments if it wins the license.
For its part, Foxwoods considers the hiring and local bidding commitments legally binding, according to Oakes, though he noted that the figures are fluid because the project is still in the early stages.
“It's a best effort on everyone's part. Some of this stuff is going to continue to evolve and there's a bit of trust that needs to happen,” Oakes said.
Proponents hope any negative impact to local business caused by competition from the casino will be outweighed by net gains to the local economy through jobs and demand for goods and services, according to Buckley. So far, he's unconvinced.
“I'm not necessarily one who subscribes to that, so I'm not going to sell it to you,” Buckley said.
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