Mayor Domenic Sarno said he will require that consltant costs be paid by the applicants for casinos.
07.17.2012 | SPRINGFIELD -- Cezar ( Cid) Froelich at the podium and his partner Michael J. Shaller, right from the law firm of Shefsky and Froelich of Chicago Illinois, were picked as the casino consultants for the City of Springfield. The announcement came Tuesday afternoon during a press conference at City Hall. Mayor Domenic J. Sarno, left and Kevin Kennedy, second from right, Springfield's Chief Economic Development Officer, made the announcement. SPRINGFIELD -- The city has chosen a Chicago law firm, Shefsky & Froelich, as its legal consultant to aid with the selection of a casino for Springfield, including negotiations and evaluating the community impact.
During a press conference Tuesday, Mayor Domenic J. Sarno praised Shefsky & Froelich for its “vast knowledge and experience in the area of casino gambling,” that includes experience representing governments as well as casinos.
Sarno set aside $125,000 to initiate the contract with the firm, but said he knows the cost will significantly exceed that amount for legal and other consultants.
“We will require that the total costs for consultants be the responsibility of the (casino) applicant,” Sarno said.
The firm’s background includes representing the city of Taunton, in negotiating an “Intergovernmental Agreement” reached between Taunton and the Mashpee Wampanoag Tribe to operate a casino in that city. The agreement was approved by a referendum vote, and a tribal contract negotiated with Gov. Deval L. Patrick’s administration is slated to be filed with the Legislature.
In addition, Shefsky & Froelich represented the city of Detroit in the development of three casinos there, and have also advised public officials in Chicago as well as the states of Colorado, Illinois, Michigan and Ohio on gaming matters, officials said.
It is important to approach the issue of casino gambling “in a professional and thoughtful manner,” Sarno said.
“This is a complex process with a need for expert advice to help formulate a plan that will bring the residential and business communities the best and most viable economic development,” Sarno said in prepared comments.
Under state law, up to three casinos will be allowed in Massachusetts, including one allowed in western Massachusetts. The law requires that an agreement must be reached between the host community and the preferred developer, establishing conditions for that casino.
Cezar Froelich, chairman of Shefsky & Froelich, said the firm looks forward to beginning its task and concluding with a host community agreement that benefits the city and state.
Any casino must be approved by the voters of the community and by the Massachusetts Gaming Commission.
Sarno said he will lobby for that casino to be located in Springfield. The state law requires the development of resort casinos with a minimum investment of $500 million, with the intent of bolstering economic development and thousands of jobs in the state.
Ameristar Casinos of Las Vegas is proposing a casino on a 41-acre parcel on Page Boulevard in East Springfield.
In addition, Peter A. Picknelly, chairman and chief executive officer of Peter Pan Bus Lines in proposing a casino in the North End. The group has made an offer to The Republican for an option on The Republican’s building at 1860 Main St., and other property.
His brother, Paul C. Picknelly, president of Monarch Enterprises of Springfield, and a hotel owner, and operator has met with several city councilors to discuss a proposal to develop a casino in the South End.
Elsewhere, the company that owns Mohegan Sun of Connecticut is proposing a casino for 152 acres in Palmer off Exit 8 of the Massachusetts Turnpike.
Several more major operators have said they are considering Western Massachusetts, including MGM Resorts, Penn National Gaming and Hard Rock International.
In Westfield, there has been no discussion of engaging consultant services to advise city officials on casino matters, according to City Advancement Officer Jeffrey R. Daley.
In May, Westfield Mayor Daniel M. Knapik reported that two gaming firms had expressed interest in property previously targeted for a $400 million Pavilion Mall project adjacent to the Massachusetts Turnpike in the city’s Northside.
The two firms were Penn National Gaming of Pennsylvania and Hard Rock International of Florida. Both had expressed interest on the 280 acre site that, in addition to the turnpike, borders east Mountain Country Club, Barnes Regional Airport and North Road.
Kevin Kennedy, Springfield’s chief development officer, said the construction of a casino would be the largest single construction project in city history.
Given the magnitude of the project, selecting Shefsky & Froelich with its background is a “prudent course of action to provide expert advice throughout the negotiations of a host community agreement,” Kennedy said.
“The construction of any $500 million development will not only provide thousands of construction jobs, but will also create thousands of new permanent jobs,” Kennedy said. “We want to be in a position to negotiate the best agreement we can.”
Shefsky & Froelich was founded in 1970 with more than 65 lawyers having extensive experience in representing governments as well as casinos, officials said.
The story will be updated as our reporting continues. Staff Writer Ted LaBorde contributed to this report.