Early Cheer for Revere: Revere Officials Sign Historic Casino Agreement

December 24, 2013
By
Revere Mayor Daniel Rizzo (left) , Mohegan Sun Chief Operating Officer Mitchell Etess (center), and Revere City Solicitor Paul Capizzi are pictured at Revere City Hall Monday where a host com¬munity agreement for a $1 billion resort casino at Suffolk Downs was signed that would guaran¬tee Revere between $25 million and $30 million in annual revenue, with the potential of that to gro beyond $40 million a year.

Revere Mayor Daniel Rizzo (left) , Mohegan Sun Chief Operating Officer Mitchell Etess (center), and Revere City Solicitor Paul Capizzi are pictured at Revere City Hall Monday where a host com¬munity agreement for a $1 billion resort casino at Suffolk Downs was signed that would guaran¬tee Revere between $25 million and $30 million in annual revenue, with the potential of that to gro beyond $40 million a year.

Revere will get between $25 million and $30 million per year in guaranteed annual payments during the first four years of the potential Mohegan Sun casino at Suffolk Downs, according to the new Host Community Agreement for the Revere-only venture that was unveiled late Monday afternoon.

“Mohegan Sun is going to create a wonderful destination that will both celebrate Revere’s unique history and provide great opportunity for its future,” said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority. “This agreement formalizes the strong partnership we’ve quickly established with Revere, and lays out the many ways the City and its residents will benefit from Mohegan Sun Massachusetts.”

Said Mayor Dan Rizzo, “I believe that this agreement will be transformational to the City of Revere. Through this partnership, Mohegan Sun and Suffolk Downs will create jobs, enhance our local and state economy, and generate much needed revenue. This project will not only be beneficial for the City of Revere, but will help stabilize and support our regional economy. I look forward to sharing the details of this agreement with our residents over the next several weeks.”

In addition to the guaranteed payments over the first four years – which would start at $25 million and escalate up to $30 million – the City will have the potential for annual payments to grow beyond $40 million based on gross gaming revenues.

The City has negotiated some $33 million in pre-opening payments to the City.

In stark contrast to the previous agreement, there is a stipulation for $1 million for the Revere Public Schools, and $4 million set aside specifically for the Revere Police and Revere Fire Departments.

Similar to the last agreement, there are $40 million in infrastructure improvements, a new athletic field and a community center.

Job preferences are also listed as being given to Revere residents, with 2,500 construction jobs cited and 4,000 permanent jobs.

Mohegan Sun has announced plans to develop a $1 billion resort casino with two hotels, world- class dining, retail and entertainment amenities on 42 of Suffolk Downs’ 52 acres in Revere. Suffolk Downs recently chose Mohegan Sun as its development and gaming partner – bringing its 78-year history and iconic name together with New England’s premier gaming brand and one of the most successful casino companies in the world.

“Mayor Rizzo, the Revere City Council and the entire Revere community have been supportive of this project for many years,” said Chip Tuttle, Chief Operating Officer of Suffolk Downs. “The addition of Mohegan Sun as the developer and gaming applicant has created a whole new level of excitement.”

Together with Brigade Capital Management, Mohegan Sun has the strongest financial platform of any gaming license applicant and an impeccable background as determined by the Massachusetts Gaming Commission’s review process.

Suffolk Downs and Mohegan Sun share a long-standing commitment to working with local businesses, community leaders and cultural and tourist organizations.

Currently, Mohegan Sun spends nearly $500 million annually on goods and services from local vendors near its Connecticut and Pennsylvania facilities. Mohegan Sun is one of Connecticut’s five largest employers and has a strong track record of hiring and training local employees – more than 90 percent of its employees live locally.

“We’re grateful to Mayor Rizzo and the City of Revere for the thoughtfulness and commitment they brought to these negotiations,” Etess said. “Mohegan Sun Massachusetts is incredibly fortunate to have such a strong and welcoming host community.”

Mohegan Sun jobs support families and households, with the opportunity for career growth and advancement in areas such as gaming operations, hospitality, marketing and promotions, transportation, engineering, human resources, accounting and finance.

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