Springfield Casino Overview Recommendation Final

7/30/2019 Springfield Casino Overview Recommendation Final

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CITYOF SPRINGFIELD , MA

NorthEnd

PennNa'onal

SouthEnd

MGM

The Chicago Consultants Studio Inc. May 2013

RFP DEVELOPER SELECTION SUMMARYDowntown Destination Casino Resort

May 1, 2013


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Overview of Proposals

Evaluation and Host Community Agreement

Negotiations

Preferred Developer

Next Steps

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Two Exceptional Proposals North End - Penn National Highlights

South End - MGM Highlights

Evaluation and Host Community Agreement

Negotiations

Preferred Developer

Next Steps

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OVERVIEWOF PROPOSALS

Citys RFQ/RFP process produced:

Two exceptional proposalsrepresenting unique but differenturban redevelopmentopportunities for downtown

Springfield, the Pioneer Valleyand Massachusetts

Both create signature destinationdevelopments that could serveas a key addition to downtown

Both strive for additional broadereconomic impact & development

Both represent quality proposalsthat could compete with othercasino proposals in the region


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Proposed Destination Casino Resorts

North End - Penn National

North end destination site with directhighway access and visibility

Development with gaming, hotel,retail and parking on site

Relocation of Republican Newspaperand Peter Pan Bus Company

Collaboration with Paramount Theater Collaborations with area institutions

and venues

South End - MGM

South end immersive urban site withmultiple access points and approaches

Mixed use development with gaming,hotel, retail, entertainment, residentialand parking

Reuse of existing historic structuresand integration into city fabric

Strong outward focus Commitment to and economic supportfor area institutions and venues

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North End Penn National Highlights

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South End MGM Highlights

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Evaluation and Host Community Agreement (HCA)

Negotiations

Process Overview and Methodology Planning and Development Considerations

Deal Term Considerations Final Offers

Preferred Developer

Next Steps

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EVALUATIONAND HCA NEGOTIATIONSProcess Overview and Methodology

Process

Phase One RFQ/RFP followed by Phase Two RFQ/RFP Public Presentation and Input Throughout (open, transparent and engaged) Proposal Submittals and Clarifications Negotiations and Refinements Final Offer Mayors Decision HCA Execution City Council ApprovalMethodology Professional Review (Traffic, Economics, Urban Planning, Impacts) Advisory Committee Work Sessions Public Forums Due Diligence

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EVALUATIONAND HCA NEGOTIATIONSPlanning and Development Considerations

Leveraging each Sites Unique Attributes and Urban Design Potential Integration into City Fabric and Context Density, Program and Land Uses Conceptual Site Plan/Program Layout (entry, sequence, flow, adjacencies,

hierarchy)

Massing and Architectural Response Traffic Flow, Impact and Enhancements Off-site Impacts and/or Commitments (collateral economic development,

streetscape, parks, etc)

Potential to Stimulate Adjacent Downtown Urban Initiatives and Investments

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EVALUATIONAND HCA NEGOTIATIONSDeal Term Considerations

Project Investment Revenues to City Other Fiscal Commitments (Community Impact, sponsorships/grants, etc) Non-Revenue Commitments (Economic Development, etc) Delivery and Timeframe

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EVALUATIONAND HCA NEGOTIATIONSFinal Offer

Following clarifications, negotiations and reaffirmation of

commitments, and enhancement to each overall project, the Cityrequested best and final offers which became the basis for

negotiating an HCA with each Developer.

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Negotiations

Preferred Developer Selection Direct Economic Benefits for Springfield

Urban Development Investments and Commitments City Building and Civic Opportunities

Competitive Position with MGCNext Steps

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PREFERRED DEVELOPERSelection

From extensive review, due diligence and detailed negotiations, Mayor Sarno,

with input from the Mayors Ad Hoc Advisory Committee, his City team andoutside consultants, and the Citys Chief Development Officer, has selected the

Developer team ofMGM Resorts International / Blue Tarp reDevelopment,LLCto pursue a gaming license together with the City of Springfield

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PREFERRED DEVELOPERMGM Springfield Program and Concept Highlights

Site

14.5 acres in the South End encompassing prime area ravaged by 2011 tornado Requires some relocation/demolition and restoration/renovationProgram: Total Development: 850,000SF(excl. parking)

Gaming: 125,000 SF; minimum of 3,000 slots, 75 table games Hotel: 250 Rooms with four-star amenities Retail: 28,000 SF incl. 20 shops and 10 restaurants by local and national brands Entertainment: Cinema Multiplex; Bowling Alley; outdoor entertainment plaza for

events and concerts

Office: 85,000 SF in renovated 101 State Street; 44,000 SF in Union Station forMGM corporate/training

Residential: 54 market rate apartment units in mid-rise along Main Street Parking: 3,600 space garage with valet, self park and bus drop-offUrban Design/Architecture

Strong urban integration/linkages & immersion Contextual massing and materials

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PREFERRED DEVELOPERMGM Springfield

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StateStreet


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PREFERRED DEVELOPERDirect Benefits for Springfield

Financial

Total Investment: Nearly $800M Projected Annual Gaming Revenues: $479M Impact Fees/Taxes: Nearly $15M upfront; anticipated $25M annually Other Revenue Commitments: pay all City expensesJobs/Business Opportunities

Gaming related: 3,000 permanent jobs Construction: 2,000 Construction Jobs Local Hire: at least 35% City residents; no more than 10% outside of City and

surrounding area

MBE/WBE/VBE- for construction & design professional services: at least 5% MBE; 10% WBE, 2% VBE- for project construction: at least 15.3% MBE, 6.9% WBE & 8% VBE- for operations: at least 50% MBE, 50% WBE & 2% VBE- for providing goods & services following opening: at least 10% MBE, 15% WBE, & 2%

VBE

Local Businesses: $50M procurement annually 19


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PREFERRED DEVELOPERUrban Development Investments and Commitments

Economic Development

Additional Commitments - essential and powerfulaspects that may well eclipse the direct revenues

Mass Mutual/Symphony Hall/City Stage - fourClass-A entertainment events at Mass Mutual

and upper end events at the other venues for atotal of twelve annually

Union Station - 44,000sf / alternative $500K/yr Trolley funding for two downtown trolleys

operated by PVTA

Downtown Residential - a unique and powerfulcatalyst to stimulate new housing investment indowntown and the South End

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PREFERRED DEVELOPERCity Building and Civic Opportunities

The opportunity that gaming presents to urban areas is the ability to leverage

a significant capital investment to revitalize and accomplish what otherwisemight be unachievable. MGM Springfield provides the potential to engage the

civic leadership of Springfield to put in motion a set of urban initiatives whichstrengthen and enhance the downtown and surrounding neighborhoods.

The MGM Springfield Host Community Agreement provides for a collaborativeand proactive planning process to craft a strategic initiatives workbook toredevelop the South End and surrounding areas, making Springfields

investment in a casino far more than anticipated.

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MGM/Springfields vision meets, exceeds and exemplifies the high bar

established by the MGCs urban development criteria. In turn, Springfield willstand out amount all regional and Commonwealth competitive venues as the

signature, marquee, urban gaming resort investment.

Hard Rock - West Springfield

Mohegan Sun - Palmer

PREFERRED DEVELOPERCompetitive Position with MGC

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MGM Springfield


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Negotiations

Preferred Developer

Next Steps

Joint Team Efforts with Developer/City Ongoing Interactive Development Process

Timetable and Schedule

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NEXT STEPS

Massachusetts Gaming Commission sharing our vision of MGMSpringfield

Ongoing Interactive Development Process Timetable and Schedule

Sign HCA Present HCA to City Council Referendum (July 2013) MGC decision (February 2014 March 2014) Construction (+33 months) Opening (July 2016)

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An Investment in Springfield, the Pioneer Valley,the Commonwealth and New England

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Documents

Springfield Casino Overview Recommendation Final