MGM Springfield is turning into the worst of both worlds. Not only has the ‘wow’ factor been subtracted (“really the least interesting part of our project,” one exec contended), with the result that the casino-hotel looks more like a bank than a resort, but it will now cost $950 million — a 19% budget increase. MGM Resorts International execs moved quickly to stanch the PR bleeding, with
President William Hornbuckle admitting, “No, we’re not changing this into a mall. No, we’re not upping and running … I wish it didn’t cost that amount. I wish we could do it for less. But we will honor our commitments.” Project prexy Michael Mathis added, “We are committed to this city. In fact, we are now $150 million more committed.” Or $150 million deeper into the swamp. MGM has severely downsized the project yet the cost continues to spiral upwards, which Hornbuckle blames on MGM working off figures three years out of date. He also said the company would bring one show a year to town (think Cirque du Soleil).
Springfield Mayor Domenic Sarno could point to his recent, landslide re-election as a by-proxy mandate for MGM Springfield, which has been his baby. (And expanded childcare facilities represent part of the additional $150 million.) MGM’s escalating budget certainly represents quite an IV drip into the Springfield economy. The question is, how many more project revisions lurk between now and opening? Another threat to the project is an off-reservation tribal casino in the greater Hartford area — a region from which MGM hopes to draw one-third of its customer base. The only certainty is that it’s going to take MGM longer to recoup its investment. But with $235 million already spent, it’s in for a penny, in for a pound.
Not everyone shares Sarno’s supportive attitude. City Council President Michael Fenton, among others, has complained of being shut out of the process. And Hornbuckle has warned of additional changes to come, so we could see an increasingly contentious process in Springfield. For now, the Massachusetts Gaming Commission holds the final say.
* Despite threats — more like blackmail — from Lucky Dragon developer Andrew Fonfa and CEO William Weidner, the Las Vegas City Council rejected their demands for a city subsidy. Sin City isn’t exactly hurting for casino product and one more or less 
isn’t going to make a material difference, especially when it comes to taking public dollars from parks and schools. Interestingly, Scott Kreeger at SLS Las Vegas has posited $139 million Lucky Dragon as his casino’s savior, but Fonfa and Weidner blamed SLS’ struggles for their own fundraising problems. (The north end of the Strip isn’t looking like such a grand investment opportunity anymore.)
Although Lucky Dragon execs tried to position their casino as a savior of a ‘blighted’ downtown, a contention that didn’t go over so well, six council members weren’t having it — nor was the Culinary Union, let alone the El Cortez. “If there’s money going to be given to casinos, we want to get in line,” said El Cortez GM Mike Nolan. Only Lucky Dragon apologist Bob Coffin voted for giving tax-increment subsidies to the casino.
* XpressWest has won the favor of the Nevada High-Speed Rail Authority and been designated the franchisee to build a Sin City-to-City of Angels line. Actually, the trip will begin/terminate well short of Los Angeles, in Palmdale. Los Angelenos will have to take Metrolink to Palmdale and change trains again in Victorville before finally being ushered into Las Vegas. On the upside, XpressWest is promising two-hour travel times and $100 round-trip tickets, with trains leaving every 20 minutes. We’ve learned to be skeptical about rail projects involving Las Vegas but this one seems more focused on transit, less about bells and whistles than any other we’ve seen.
