Try as they might, MGM won’t be able to replicate downtown Northampton.
Northampton mayor David Narkewicz says representatives of the MGM Springfield casino are attempting to recruit Northampton businesses to open up shop within the walls of their future gambling complex — and he expects MGM’s downtown-shopping design will mimic aspects of his own city’s Main Street.
Imitation is the sincerest form of flattery, he says. But who wants flattery over cash?
“That speaks to the fact that [the casino] will provide competition, but at the end of the day, you can’t recreate what we have in Northampton,” Narkewicz says.
Last week’s groundbreaking for MGM in downtown Springfield brought home to the Valley that after years of debate, casino gambling is coming to Western Mass — and soon. MGM is planning to open in 2017. Chambers of commerce, area businesses and politicians are now working to see how they can profit from the new opportunities MGM will provide, or how they can steel their businesses against the casino.
It’s kind of a, “if you’re not with the casino, you’re against the casino” attitude in the potentially-impacted Valley business community. Lines in the sand are being drawn. While some businesses work on signing vending contracts and memorandums with MGM, other business owners and city officials are hatching plans to safeguard their downtown offerings from taking a hit, says Rick Sullivan, president and CEO of the Economic Development Council of Western Massachusetts.
For one, Connecticut is against the casino. “Massachusetts has declared economic war on us, and we’re going to fight back,” Connecticut Senate Majority Leader Bob Duff declared last month. A look at his audience that day explains his stark language: Duff was addressing employees, union members, and tribal leaders from the Mohegan Sun and Foxwoods casinos. Since Massachusetts entered the casino market in 2011, with MGM Springfield and additional casino facilities planned for the city of Everett and the town of Plainville, Connecticut lawmakers are preparing for what many anticipate will amount to a New England arms race for casino revenue. On March 17, the Connecticut General Assembly’s Committee on Public Safety held a hearing on a new expanded gambling bill, which would allow the Mashantucket Pequot and Mohegan tribes to partner on the creation of three new casinos in the state. That afternoon, chairmen from both tribes warned lawmakers that the opening of MGM Springfield alone could mean the loss of up to 18,000 jobs at Mohegan Sun and Foxwoods.
Kevin Brown, the chairman of the Mohegan Tribe, testified that if the bill does not pass, “We will likely be forced to right-size our business and eliminate thousands of jobs, and the impact will be significant.”
Much of Springfield, of course, is with the casino. Jeff Ciuffreda, president of the Affiliated Chambers of Commerce of Greater Springfield, is connecting Valley businesses with MGM. Ciuffreda says in order to do that, he’s referencing a 100-page list MGM created of products and services the gambling complex will need — potentially $50 million in Valley goods. MGM is basing their needs estimate on operations at the company’s Detroit, Michigan, casino, a complex similar to the Springfield destination in size and structure.
According to MGM Springfield spokesperson Colleen McGlynn, the corporation hashed some of this out with the city of Springfield in their Host Community Agreement, written in 2013. “MGM Springfield will use its best effort to ensure that at least $50 million of its annual biddable goods and services will be prioritized for local procurement,” McGlynn said.
That’s a vow Ciuffreda says he is intent on helping MGM keep. Right now he’s mostly working to connect MGM with local contractors, electricians and abatement operators, carpeting suppliers, and others in the indoor furnishing industry. But other contracts are being hammered out, too. For example, Ciuffreda says MGM is interested in serving La Fiorentina of Springfield cannoli and using produce from the city’s AC Co. as well as local CSAs. Berkshire Brewing Company in Deerfield, he says, has already inked a beverage agreement with MGM and the casino is interested in partnering with other craft brewers.
“We’re trying to help not only make those marriages but also make them work,” says Ciuffreda.
Even the industries who are concerned, Ciuffreda says, have an opportunity to get out in front of any potential problems.
“Will there be some small businesses that may get hurt?” Ciuffreda says. Sure — some nightclub owners, hotel owners and retailers are feeling a little anxious now. But “the chamber has come to the conclusion that the positives outweigh the negatives. I think right now, they’ve been working to fit into the community more than trying to come in and try to do things their way,” he says.
Ciuffreda notes that MGM is slated to build a 250-room hotel, which means the casino is planning on guests staying in neighboring hotels. Plus, he says, the casino’s hotel prices will likely be on the expensive side, so guests looking for a bargain will likely spend the night outside the casino grounds.
Springfield BID Executive Director Chris Russell says he sees no negative impacts from the casino. “Opportunities are rising,” he said. “Everything’s being viewed in a completely different light.”
Here’s a little more about how businesses, community leaders, and politicians are preparing to work with or without MGM.
Springfield
Nadim Kashouh, who runs Nadim’s Mediterranean Restaurant and Grill on Main Street, sees two chapters to the story of Springfield’s future. The first chapter starts now and runs through the 33-month construction project, and it concerns him, he says. “It’ll be hustling and bustling, and no one knows what will happen to business. It won’t affect us much for lunch, because we have a lot of people working downtown who need lunch, but I don’t know what’s going to happen during our dinners.”
The second chapter, which begins when the casino opens, will be “phenomenal,” Kashouh says. “I think it’s the best thing that could happen to Springfield. It’s a huge investment, and with that comes a lot of work and a lot of jobs.”
Kashouh says he doesn’t expect the casino to hire only local candidates for those 3,000 new jobs promised. That will mean hiring from other states, which will mean new lives here for some of those employed by MGM. “The city will become more residential,” he says. “I’m looking forward to it. It’s what the city needs.”
To prepare for the future, Kashouh will be investing in new exterior signs, a new facade, and a renovated interior. “It’s time to bring everything up to speed,” he says.
BID director Russell points to the increase in construction projects for market-rate apartments downtown. He’s excited, he says, by extensive upgrades to Union Station, which he expects will lead to more regular regional rail travel through Springfield. And he is anticipating the resurgence of what he calls the Worthington Street dining district. “It was a very well-visited area in the past, and we want to bring that back,” he says. “Businesses are looking at us. It’s happening quickly.”
For this reason, the BID is resurrecting Restaurant Week, which runs from April 23 to May 2. At least 18 restaurants will participate, Russell says, and “they know that if they do their jobs well, it will be a catalyst for business and growth. We get people onto the sidewalks and up to their front doors — they just have to draw them in.”
MGM Springfield’s ground plan includes an outdoor stage for free live entertainment, but the corporation has also committed to partnering with the MassMutual Center and CityStage & Symphony Hall on year-round programming for indoor ticketed concerts and shows.
For CityStage & Symphony Hall, that means four additional shows a year, said President Tina D’Agostino. That 2017 season of programming feels a long way off, she says, “but the future looks bright” — especially since she has also had some preliminary discussions with MGM about possible co-promotions for shows already scheduled.
Freshening up the programming at CityStage & Symphony Hall will benefit the city, D’Agostino said, since attendance rates at these venues has been good, but not great, in recent years. “We bring a lot of local market knowledge to the table,” she says, “but we’ll also have to have a discussion with MGM about what we could be doing differently.”
The first step, she says, is to get patrons to feel more comfortable traversing downtown on foot at night.
“We fight the perception of violence every day,” D’Agostino says. “Especially during the hours we have shows. But it really is safe.”
Much is still to be determined about the partnership with MGM. D’Agostino says she is certain that her staff — which currently consists of five full-time employees — will have to grow as programming becomes more robust, but those details have not been set. She also has yet to discuss with MGM the logistics of sharing ticket revenue for shows that are programmed by MGM, hosted by CityStage & Symphony Hall, and staffed by employees from both companies.
“I imagine the artists MGM books will be popular and high-caliber,” she said, “and we have the great spaces to host them.”
West Springfield
Chuck Kelly, vice president of the West of the River Chamber of Commerce — a joint chamber which serves both Agawam and West Springfield — says he and the other directors are in discussions with MGM about using chamber members as casino vendors.
“It’s not holding their feet to the fire,” Kelly says. “It’s more of a collaborative effort to help make sure everyone is successful.”
The West Springfield hotel industry, he says, is an area they’d like to emphasize. About a dozen of the hotels lie just a quick drive over the bridge from where the casino is being built.
“The hotels are a concern — you want them to be able to benefit from the increased traffic,” Kelly says. “Hopefully they’ll benefit from it instead of losing out.”
Ray Desai, part owner of the Candlewood Suites in West Springfield, says he’s hopeful his business won’t take a hit once the casino is in full swing, but says he knows how much hotels surrounding the Connecticut casinos are struggling.
“We’ll try to market with them once they’re open, but right now there’s not much we can do,” Desai says. “I’m hoping they provide shuttle services to all the area hotels.”
Kelly says the Majestic Theater and the Big E are examples of West Springfield entertainment venues in need of safeguarding from potential losses.
“Hopefully they can help MGM and all can benefit,” Kelly says. “We have to protect some of the membership who may lose income just because of the competitive nature.”
Chicopee
Eileen Drumm, president of the Chicopee Chamber, is not at all worried for Chicopee businesses and sees the development of a Springfield casino only as a positive.
“I don’t think that the sky is falling,” says Drumm. “As long as we know now that it’s coming we can turn this into an opportunity. Our strategy is to keep our members informed every step of the way, so that they have the op to be vendors.”
Drumm says the more people coming to Springfield, the more they can hopefully draw into Chicopee. Places like the Munich Haus and displays at the public library are likely attractions. She says the city is currently revitalizing its downtown, so there will be even more to offer visitors than there has been in the past.
Holyoke
Rory Casey, chief of staff for Holyoke Mayor Alex Morse, says the administration is working to ensure Holyoke businesses are protected from its neighboring city’s future casino, as well as to bolster the city’s hospitality offerings.
“The way we’re looking at this is how can we both insulate ourselves from whatever negative impacts may come — people leaving here to go eat at the casino, shop at stores at the casino,” Casey says. “More than that we’re looking at how can we attract people from the casino to come to Holyoke.”
To this end, says Casey, Morse has proposed using grant funds from the Gaming Commission toward the Holyoke Tourism Assessment and Expansion Plan. For example, eco tourism, Casey says, is a big part of what Holyoke has to offer. Also, the city was just awarded 13 over-quota liquor licenses from the state, which will be an added draw. The administration is actively trying to bring more restaurateurs into Holyoke, Casey says, so they’re selling the liquor licenses for only $10,000.
“It’s been very attractive and we’ve heard of interest from a number of restaurateurs,” says Casey.
Casey says they are also trying to bring more events into downtown. Celebrate Holyoke, he says, will be returning after a 10-year hiatus. The rehabilitation of Victory Theatre is another project the administration is supporting.
Agawam, East Longmeadow, and Longmeadow
Longmeadow, like several other towns abutting Springfield, was designated a “surrounding community” by the Massachusetts Gaming Commission, which means the town receives $850,000 up front and $275,000 annually from MGM beginning in 2017 to offset costs laid on the town by the casino. These costs include things such as higher student enrollments due to an influx of casino employees and their families, infrastructure improvements, more police details, etc. That up-front aid is welcome, said Longmeadow Town Manager Stephen Crane, but it isn’t expected to fully cover the new construction work anticipated at four intersections along Route 5.
“We had thought of that as a long-term project, but having MGM generating thousands of vehicle trips a day through town changes the timeframe,” Crane says. The opening of the casino is too far off to predict how local businesses will be affected, he says, but good traffic flow will play a pivotal role in keeping Longmeadow functional.
Agawam Mayor Richard Cohen says he would love to see the casino have a positive effect on commerce in his town. “We’d love to see people eating dinner at [Agawam restaurants] The Federal and Parthenon, coming to Six Flags, all of that,” he says. “We want that spillover, absolutely. I really hope the casino does what it says it’s going to do, in terms of regional impact.”
But time will tell.
Cohen and his staff have hired an economic research company called Civic Economics to evaluate, one year and then five years after the casino opens, its impact on housing, crime, population, traffic, and the values of restaurants and homes. “I have no reason not to believe that it will work out for the best,” Cohen says.
Agawam received $125,000 up-front and will get $150,000 in mitigation funding annually from MGM. Cohen says a significant amount of traffic runs between Springfield and Connecticut through Agawam. With the mitigation funding and some smart thinking, the likely increase in traffic on Agawam roads will be manageable. “During the Big E each year, we get 17 days of gridlock,” he says. “We survive, and we work through it. Six Flags used to get gridlocked too, and it’s not usually anymore, because we all worked together to alleviate that.”
“Get over it, Connecticut,” Cohen says of the prospect of new casino construction in Connecticut. “You’ve had casinos for decades. Massachusetts didn’t, and Rhode Island did. You neighbor both. You don’t mind when Massachusetts visitors come to you. Now you’re upset that we’re getting in the game?”
Northampton
Northampton is about 20 minutes away from downtown Springfield — a distance the state Gaming Commission decided was too far to require MGM to pay the city as a “surrounding community” that would be impacted by the casino. In his appeal to the commission, Narkewicz says, he focused on the economic damage the casino could do to downtown Northampton.
There’s still a chance, he says, Northampton could receive other economic-impact mitigation money from MGM, for which the city has already applied.
Any funds the city is awarded, Narkewicz says, would go toward marketing Northampton — especially to casino visitors. City marketing efforts were formerly aided by the late Northampton BID. Now, Narkewicz says, a group of 15 downtown stakeholders has organized and will likely take on some of that role.
Narkewicz has also requested five over-quota liquor licenses to bolster Northampton’s restaurant scene — something he said he would have done with or without the casino, adding that he thinks the state’s quota system is outdated. He says that he is lobbying for additional rail service that would make it easier for people to go back and forth from Northampton to the casino.
“I want nothing but the best for the city of Springfield — I understand [Springfield] Mayor Sarno’s interest and passion for this project, but I’m sure he understands my passion for making sure Northampton remains strong and vibrant,” Narkewicz says.
Suzanne Beck, executive director of the Northampton Chamber of Commerce, says Northampton will directly compete with the casino as a tourist destination and as a source of dining and entertainment.
“It’s definitely on the radar, but nobody’s panicking,” Beck says.•
Contact Amanda Drane at adrane@valleyadvocate.com and Hunter Styles at hstyles@valleyadvocate.com.
