A Little Late, But Welcome to Massachusetts, Steve!

WynnEverettIt appears that the lengthy, sometimes contentious, legal battle between Wynn Resorts Chairman Steve Wynn and Boston Mayor Marty Walsh is over. A “surrounding community” agreement was reached by both parties for the development of an Everett casino. The agreement includes:

  • $31 million over 15 years for community impact
  • $25 million over 10 years for Sullivan Square infrastructure improvements
  • $11 million for traffic mitigation in Charlestown
  • $250,000 for a regional working group on a “long-term fix” for Sullivan Square
  • a “good faith effort” to purchase $20 million annually over 15 years from Boston businesses
  • $1 million for reimbursement of Boston’s professional (legal) expenses.

Wynn Resorts Everett will be a $1.7 billion, five-star, premier destination resort with a 600 all-suite room hotel in Everett, located off Lower Broadway, at the site of the heavily contaminated, former Monsanto Chemical plant. Millions of dollars will be invested to clean and remediate the site and to construct infrastructure and traffic betterments.

The Commonwealth will receive a licensing fee of $85 million, along with 25% of gross gaming revenues, which are estimated to be $260 million annually.

There will be 4,000 full time jobs, as well as over 3,600 construction jobs.

For Everett:

  • $30 million in advanced payments for a Community Enhancement Fund payable during the construction period
  • $5 million Community Impact Fee, increasing annually
  • $20 million for real estate taxes, increasing annually (almost 25% of the city’s tax base)
  • $250,000 contribution to Everett Citizens Foundation
  • $50,000 annual payment to purchase vouchers/gift certificates from Everett businesses to be distributed by Wynn as part of its loyalty programs
  • An estimated $2.5 million per year in hotel and restaurant taxes
  • An active waterfront park with a winter garden and harbor walk will be created

That’s quite a financial commitment by an out-of-state company to the Commonwealth. In case you haven’t heard it before, welcome to Massachusetts!

Patience Not Panic Needed with BRA

A recent Globe article stated that three months into Mayor Walsh’s term, “the pipeline of major new (development) proposals has slowed to a trickle.” The implication is that the transition from the Menino Administration has left the Boston Redevelopment Authority rudderless.

I disagree. The final days of 2013 cannot be viewed as the norm for the Menino Administration. Virtually any developer with a project was aggressively pressing for its approval prior to year’s end. The BRA, most likely, set a record for the number of projects permitted.

Given that the Walsh administration has begun an in-depth audit of the BRA, it does not seem unreasonable that city leaders be given time to properly review the current process and propose needed changes in how projects are reviewed and permitted.

Less than 90 days have passed since Mayor Walsh took office. The last mayor had 20 years to shape the BRA’s review process. Before anyone questions the competency of the Walsh Administration, they should allow city leaders to get to know how the city operates and give them adequate time to make changes that could result in a stronger, more vibrant Boston.