Pols: Wynn-MGM talks dicey
Both Everett, Springfield see Encore sale as a losing bet
Officials from Everett and Springfield say their cities could be dealt a bad hand should Wynn Resorts proceed with the sale of its $2.6 billion Encore Boston Harbor to MGM International Resorts.
The bombshell development Friday apparently cuts out other past competitors for the Boston-area license and raises questions about the MGM Springfield casino’s future. The state’s gaming law allows operators to own only a single casino license.
“Over the past several weeks, we have engaged in conversations around the potential sale of Encore Boston Harbor,” Wynn and MGM said in a joint statement sent to the Herald. “They are very preliminary and of the nature that publicly traded corporations like ours often engage in, and in fact when opportunities such as this are presented, we are required to explore. We cannot say today where these conversations will lead, however we can reaffirm our commitment to the communities where we operate today.”
“We’re so close to opening to have talks of a sale, I’m surprised, concerned and somewhat disappointed,” said Everett City Councilor Mike McLaughlin on Saturday. “Ninety percent of residents voted in favor of a host community agreement with Wynn Resorts, a fivestar resort destination, and not for a three-star resort, which is MGM.”
“A sale would put at risk the benefits and amenities that Wynn Resorts will bring to the city — the 5,500 jobs on the line, taxes and revenues, and improvements for the community and in the Greater Boston area,” McLaughlin told the Herald.
“We’re talking about people’s lives that are on the brink of starting a new career at Encore, and that’s very concerning to me if there is a sale,” McLaughlin continued. “I want to ensure the residents and business owners that live and work in our community have a quality of life that they expect and deserve. Wynn Resorts gave our city an opportunity to be on the map again, to be an international destination for tourists that expect a five-star resort.”
“If another developer were to come to Everett and agree to fulfill their obligations that Wynn have offered in our host community agreement, my eyes and ears are open,” said McLaughlin. “I will closely watch the developments unfold, and if I feel at any time that this is not in the best interest of the people I represent, I will strongly encourage and support Mayor DeMaria in invoking Section 10 veto power of any sale.”
On Friday, Everett Mayor Carlo DeMaria said he was not amused by news of a possible sale.
“The mayor had the foresight that something like this could occur and to protect the city, he put in Section 10 that gives the mayor ultimate veto,” said George Regan, speaking on behalf of DeMaria, in a reference to the host community agreement with Wynn Resorts. “He is not amused. He’s not going to allow the city of Everett to be taken for granted.”
Springfield Mayor Domenic Sarno said Friday that MGM’s Bill Hornuckle “reached out to me late (Thursday) evening to indicate that Wynn Encore reached out to MGM wanting to speak with them.”
Springfield City Council President Justin Hurst said Saturday that talks of a possible sale were “difficult and disheartening to hear considering it is somebody that’s been such a good partner over the last few years has the potential to leave this city, especially one we felt so much optimism by their presence here.”
“We banked on entertainment, and MGM certainly is the operator that we thought would bring the most entertainment, which will in turn attract tourism to the city,” Hurst told the Herald. “The residents are concerned that in the event MGM goes elsewhere, it’s important that we find a viable alternative operator who will take over and fulfill the same standards MGM agreed to with us.”
“Residents have said that the potential economic development boom and our expectations might not come to fruition if there is a sale, it’s disappointing,” Hurst said. “We banked on the tax revenues coming from MGM, the name brand of MGM, their entertainment value it brought to the city. If they leave, there’ll be a huge void in the city.”