SPRINGFIELD — Facing severe economic hardships during the coronavirus pandemic, MGM Springfield this week still made good on an approximately $2.3 million payment owed to the city since April.
Timothy J. Plante, Springfield’s chief administrative and financial officer, confirmed on Friday that the city received a payment of $2,274,590.89 on Monday, the full amount that was delinquent.
“This made them whole for the amount due,” Plante said.
On April 1, MGM made a payment $5,505,784.42, a partial payment toward the $7,780,376.32 owed under the host community agreement it negotiated with Springfield prior to opening in 2018.
MGM and Massachusetts’ two other casinos partially reopened in July after a four-month shutdown prompted by the pandemic. The payment occurs just as MGM Springfield faces another financial blow related to the coronavirus.
On Friday the casino laid off more staff, blaming a 9:30 p.m. curfew Gov. Charles Baker imposed on businesses across the state to combat a surge in COVID-19 infections. The layoffs or reductions of hours will impact 250 employees. In August the casino laid off 1,000 employees furloughed during the shutdown.
Mayor Domenic J. Sarno praised MGM for completing its payment to the city.
“I want to thank MGM Springfield, especially President and COO Chris Kelley and his team, for their continued commitment to our Springfield by honoring the Host Community Agreement,” Sarno said.
The city will continue to work with businesses “to help stabilize them during these challenging and surreal times of the COVID-19 Coronavirus pandemic,” Sarno said.
It remains the city’s stance that all contractual obligations under MGM’s host community agreement will be enforced, Sarno has said.
A representative of MGM Springfield was not available for comment on Friday.
The casino has taken numerous COVID-19 precautions, including limits on capacity, mandatory face coverings for patrons and employees, and plexiglass dividers at gambling tables and slot machines.
On March 19, MGM Springfield filed a notice of “force majeure” with the city, seeking relief from certain financial obligations due to events or circumstances “beyond the reasonable control” of the casino, referring to the pandemic. Gambling revenues were lost during the shutdown and significantly reduced since the casino reopened.
The city receives $24 million to $25 million annually from MGM Springfield including payments in lieu of taxes, community impact payments and development grants, according to the city.
A recent University of Massachusetts study titled “Social and Economic Impact of Gambling in Massachusetts” showed MGM Springfield “is a major driver of jobs and has been an economic boost for the city and the region,” Sarno said.
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November 07, 2020 at 06:00PM
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MGM Springfield makes $2.3M payment to city despite coronavirus hardships - MassLive.com
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