Wynn Resorts wrote the City of Boston a $1 million check as part of an initial mitigation package for the future Everett casino, but Boston refused to accept it; the check is being held in escrow by the state Gaming Commission.
Wynn Resorts agreed to the mitigation package – one that could reach $76 million – imposed by the commission when it awarded the lone Greater Boston casino license to Everett in November. Since Boston opted not to participate in arbitration, which the commission stipulates when casino host cities and surrounding communities can’t come to an agreement or fail to participate in negotiations, Wynn will make payments agreed to when its $1.6 billion casino plan was approved.
Boston Mayor Marty Walsh is suing the commission for approving the Everett casino proposal, asking that Suffolk County Superior Court toss out the approval vote for Wynn’s proposal. The primary point of contention: Charlestown traffic congestion in Sullivan Square after the casino is built.
Boston Complaint on Wynn Casino Approval
In an statement Boston’s mayor addressed the complaint, which was announced hours after Wynn closed on its $35 million purchase of the 33-acre Everett site:
We have spent an enormous amount of time and sustained effort on the casino issue over the past year since this is something that impacts every single one of our residents. We have understood from day one the complexity of this issue as it relates to the City and it has always been our belief that Boston is a host community. Our priority is to protect the people of Boston and ensure the safety of our neighborhoods. It is clear to us that this is the best way to move forward for Charlestown, the City of Boston and the entire Commonwealth.
The Greater Boston casino license agreement mandates Wynn’s initial $1 million payment be put toward various Charlestown non-profits, parks, after-school activities, senior programs, job training programs, cultural events and related activities in support of the community’s heritage, cultural activities and quality of life, a press release states. The money must also help fund staffing and public safety programs related to the expected increase in traffic, as well as to make improvements to Boston Harbor water transportation.
Boston will receive a minimum of $56 million as part of the package, all of which must be used to cover impacts of the Everett Casino, most notably Sullivan Square traffic. Wynn will make an annual payment of $24 million – on top of the initial $1 million paid Wednesday – to Boston. To address the Charlestown traffic situation, Wynn has agreed to pay $25 million to fund long-term Sullivan Square projects, and an additional $6 million to fund short-term projects.
The gaming commission, if traffic projections related to Wynn Everett aren’t met, could assess $20 million in additional fees.
“We believe the $56 million package for Boston, which is primarily dedicated to Charlestown traffic solutions, will be critical in solving the decades-long problems of Sullivan Square. The package is comprehensive in that it also includes vendor and employee commitments consistent with our other Surrounding Community Agreements,” said Robert DeSalvio, President of Wynn Everett, in a statement. “This initial payment, so closely following the acquisition of our land parcel, is still another step that keeps us on track to make our 5-star resort a reality,”
Wynn Casino would not comment on Boston refusing to take the check.
