Supplier News
US – Cost of MGM Springfield continuing to soar
By Phil - 20 November 2015
MGM Resorts International President Bill Hornbuckle has confirmed that the estimated cost of building MGM Springfield in Massachusetts has increased from $800m to over $950m despite cost-saving changes to its design.
The cost for the downtown casino, hotel and entertainment centre was revealed at a city forum meant to outline the changes.
Mr. Hornbuckle said: “The reality is that this project will exceed $950m. I wish it didn’t. I wish we could do it for less. But we can’t. We made commitments to this community we are going to honour.”
Amendments to the blueprint include axing a 25-story hotel tower in favour of a smaller building, the relocation of an apartment complex away from the development and a 10 per cent reduction in the size of the casino complex.
MGM wants to open the casino in the autumn of 2018, meaning it would be a year late.
MGM’s next presentation to the Massachusetts Gaming Commission, which will include financial details of the redesign, won’t take place until December 3.
Commission spokeswoman Elaine Driscoll said.”Commission staff has determined that it would be best to have MGM Springfield present to the Commission at a public meeting on December 3. It is anticipated that MEPA will have made a decision on MGM’s notice of project change by that time which will greatly inform the Commission’s discussion. In addition, MGM is presenting to the City of Springfield on November 18 and Commission staff feels it is appropriate to allow the City of Springfield time to digest that information prior to our discussion.”
MGM spokeswoman Carole Brennan Brennan added: “We have always appreciated and respected the way the City of Springfield and the Massachusetts Gaming Commission work together to make certain that we deliver the best MGM Springfield possible. It makes sense that Springfield officials be given a chance to digest and reflect on what will be a very detailed project presentation Wednesday evening before moving the discussion to the Mass Gaming Commission.”
