MGM Springfield and Longmeadow to go into arbitration - CBS 3 Springfield - WSHM

MGM Springfield and Longmeadow to go into arbitration

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SPRINGFIELD, MA (WSHM) -

There's a deadlock in Longmeadow over the surrounding community agreement with MGM Springfield.

After not being able to reach a deal with MGM Springfield, the town of Longmeadow now says the two will go into arbitration.

After Longmeadow was designated a surrounding community to MGM, the two had a month to reach an agreement.

That deadline passed last week.

So what does this mean for the two?

"Right now we are in the process of scheduling an arbitration, establishing a panel and choosing those who will be on the panel and setting up those dates," said Longmeadow Town Manager Stephen Crane.

In compliance with the Massachusetts State Gaming Law, Best and Final Offers from both parties have been submitted.

Crane said the town's offer includes $850,000 up front and 13 annual payments of $275,000. This would create a baseline agreement of $4.425 million, a decrease from their December $8.45 million counter offer.

Funds that he said will help support the town in two key areas should MGM be awarded the Western Mass casino license.

"When we were designated a surrounding by the Mass Gaming Commission, they said we would feel impacts of traffic and public safety," explained Crane.

MGM gave Longmeadow two options. The first, agreed to pay the community $200,000 and $800,000 to make traffic improvements. The second wouldn't be specific to just traffic improvements and has a value of $1.6 million.  

An amount Crane said just does not work.

"Their Best and Final Offer, just doesn't protect the town's interest in that regard," said Crane. 

In a statement issued to CBS 3, MGM officials said, "With six signed surrounding community agreements, the MGM Springfield team feels good that our data-driven process has been fair, balanced and responsive to all parties."

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