Mohegan Sun Reaches Host Community Agreement With Revere
Up to $30 million in guaranteed annual revenue with potential for growth beyond $40 million; $45 million in new or improved infrastructure; New athletic fields, community center; job preference for Revere residents
(REVERE – December 23, 2013) – Mohegan Sun today announced a host community agreement with the City of Revere that would guarantee the City between $25 million and $30 million in annual revenue, with the potential of that to grow beyond $40 million a year.
The deal also provides up to $33 million in pre-opening payments, approximately $45 million in infrastructure improvements, new athletic fields, guaranteed school funding and money for public safety, a community center and other benefits.
The agreement - reached by Revere Mayor Dan Rizzo and the Mohegan Sun/Suffolk Downs team - is the result of comprehensive discussions over benefits to the City of Revere should Mohegan Sun be awarded a license to develop a $1 billion resort casino on 42 of Suffolk Downs’ 52 acres in Revere.
“Mohegan Sun is going to create a wonderful destination that will both celebrate Revere’s unique history and provide great opportunity for its future,” said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority. “This agreement formalizes the strong partnership we’ve quickly established with Revere, and lays out the many ways the City and its residents will benefit from Mohegan Sun Massachusetts.”
Highlights of the Host Agreement with Mohegan Sun and the City of Revere include:
- Guaranteed minimum annual payments escalating from $25 million to $28 million during first four years of casino operations
- Potential for annual payments to grow beyond $40 million based on gross gaming revenues
- Pre-opening payments totaling up to $33 million
- Job preference for Revere residents and target spending levels with Revere vendors
- $45 million in infrastructure improvements
- New athletic field and community center
- 2,500 construction jobs. 4,000 full-time jobs.
- $1 million for Revere public schools
- $4 million for police and fire departments
“I believe that this agreement will be transformational to the City of Revere. Through this partnership, Mohegan Sun and Suffolk Downs will create jobs, enhance our local and state economy, and generate much needed revenue,” said Revere Mayor Daniel Rizzo. “This project will not only be beneficial for the City of Revere, but will help stabilize and support our regional economy. I look forward to sharing the details of this agreement with our residents over the next several weeks.”
Mohegan Sun has announced plans to develop a $1 billion resort casino with two hotels, worldclass dining, retail and entertainment amenities on 42 of Suffolk Downs’ 52 acres in Revere. Suffolk Downs recently chose Mohegan Sun as its development and gaming partner – bringing its 78-year history and iconic name together with New England’s premier gaming brand and one of the most successful casino companies in the world. “Mayor Rizzo, the Revere City Council and the entire Revere community have been supportive of this project for many years,” said Chip Tuttle, Chief Operating Officer of Suffolk Downs. “The addition of Mohegan Sun as the developer and gaming applicant has created a whole new level of excitement.”
Together with Brigade Capital Management, Mohegan Sun has the strongest financial platform of any gaming license applicant and an impeccable background as determined by the Massachusetts Gaming Commission’s review process.
Suffolk Downs and Mohegan Sun share a long-standing commitment to working with local businesses, community leaders and cultural and tourist organizations. Currently, Mohegan Sun spends nearly $500 million annually on goods and services from local vendors near its Connecticut and Pennsylvania facilities. Mohegan Sun is one of Connecticut’s five largest employers and has a strong track record of hiring and training local employees – more than 90 percent of its employees live locally.
“We’re grateful to Mayor Rizzo and the City of Revere for the thoughtfulness and commitment they brought to these negotiations,” Etess said. “Mohegan Sun Massachusetts is incredibly fortunate to have such a strong and welcoming host community.”
Mohegan Sun jobs support families and households, with the opportunity for career growth and advancement in areas such as gaming operations, hospitality, marketing and promotions, transportation, engineering, human resources, accounting and finance.
About Mohegan Sun:
Owned by the Mohegan Tribal Gaming Authority, Mohegan Sun is one of the largest, most distinctive and spectacular entertainment, gaming, shopping and dining destinations in the United States. Situated on 185 acres along the Thames River in scenic southeastern Connecticut, Mohegan Sun is within easy access of New York, Boston, Hartford and Providence and located 15 minutes from the museums, antique shops and waterfront of Mystic Country. More information is available by calling 1.888.226.7711 or visiting mohegansun.com. Connect with us on Facebook, follow us on Twitter, like on Pinterest and view us on YouTube.
About Suffolk Downs:
Founded in 1935, Suffolk Downs has been a gaming and entertainment venue in the city of Boston for over 78 years. It is New England’s only remaining active Thoroughbred racetrack. Rich in history, Suffolk Downs has hosted Hall of Fame horses Seabiscuit, Whirlaway and Cigar, and has been the site of performances by world-renowned entertainers, including the Beatles and Aerosmith. For more information, please visit www.suffolkdowns.com. Download this press release in PDF format