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Mayor Walsh signs surrounding community agreement with Mohegan Sun

July 10, 2014

Mayor's Office

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Mayor's Office

Today Mayor Martin J. Walsh signed a Surrounding Community Agreement with Mohegan Sun Massachusetts. The deal provides for an estimated $300M in investments in Boston over a 15-year period. 

“This was a difficult decision, but I have a responsibility as the Mayor of Boston to protect the best interests of our City, and of those in the neighborhood most impacted by this proposal,” said Mayor Walsh. “Mohegan Sun has engaged fully with our team and with this City, with a clear intent to be a good neighbor to our community. I appreciate their willingness to come to the table and work together on a deal that supports and strengthens Boston’s infrastructure and economy.”

With this agreement, Mohegan Sun Massachusetts will invest $45M in transportation improvements to the City of Boston and the area surrounding the casino site. The City of Boston will receive $30M over 10 years for local capital projects in East Boston, and will receive a minimum of $18M annually to mitigate the community impact of the casino development. This community impact annual payment will increase based on gross gaming revenue calculated in a given year. 

In addition, Mohegan has pledged to use local vendors for goods and services for their facilities, which will inject upwards of $50M into the Boston economy. Mohegan has also pledged to give preference to East Boston residents when hiring to fill positions in the construction phase of the plan, and in the jobs that become available with the casino and its affiliates upon opening. 

If there is an attempt to introduce a gaming- or casino-related facility in any part of property located in East Boston, Mohegan agrees to address Boston as a host community as they engage in the plans. This will immediately trigger a vote for community members, and a discussion of new, revised mitigation as a host community.

As part and parcel of today’s transaction, the City of Boston also signed an agreement with Suffolk Downs which will preserve hundreds of jobs and secure revenue through continued property and real estate taxes. Suffolk Downs has agreed that they will keep their track open for the duration of the casino license for Region A. In addition, if Suffolk Downs begins any reconstruction or revitalization of their property, the City of Boston will serve in a master planning and oversight role. 

This agreement was signed at approximately 4:00 p.m. today in the Mayor’s Office.