So much for the Wynn casino. (Boston, Springfield: insurance, buying, casinos)

[timberline742]

Originally Posted by tysmith95

Wynn, or any casino operator, hires construction contractors to do the job. Wynn as a company is involved in designing the casino, financing it, and running it. But engineering firms and construction firms are the ones doing the construction itself, not Wynn. The blame for the incidents will almost certainly be on the contractors and not Wynn itself.

Suffolk Construction, the general contractor, has been involved in a ton of large construction projects in the Boston area. The Millennium tower and the under construction 4 seasons tower are both being built or were built by Suffolk.

A couple of deaths with a major construction project is hardly noteworthy.

[mdovell]

Well it's happening folks.
Wynn Resorts in preliminary talks with MGM to sell Everett casino - The Boston Globe
Wynn Resorts in preliminary talks with MGM to sell Everett casino.

First people said Wynn didn't have to leave. Then they said it would have no ramifications on the company after he left (still investigating) now they are saying.

Without question they are spending a fair amount.
"Wynn Resorts is spending about $3 million a day in Everett, about half on payroll. About 1,500 people work at the site. The resort is around 60 percent complete and due to open in June 2019. Wynn Resorts has said the project is the largest single-phased private development in state history."

I would argue they have 1.3 billion left to spend.

"State regulators have been tight-lipped about the investigation. But what little they have said has sounded ominous to officials at Wynn Resorts: Gaming commission chairman Stephen Crosby recently addressed the investigation with a statement that Wynn Resorts is proceeding with the project on an “at-risk basis.”"

That sounds like a progress report for a middle school that has failed algebra and has to go to summer school.

"In a statement Thursday evening, Wynn Resorts CEO Matt Maddox seemed to refer to Crosby’s comment in explaining the company’s position.

“We remain very excited about the Boston market,” the Maddox statement said. “**HOWEVER**, our obligation to shareholders is always to maximize the value of our assets and to mitigate risk. These obligations are particularly relevant in light of recent commentary that was made despite our rapid and decisive efforts to sever all ties with our former chairman, actively searching for new diverse board members, and fully cooperating with the regulators in Massachusetts and elsewhere.”

So they see this as doing too much. You need a new chairmen, new board members and now investigations of felons with mob ties to the land you operate on. Too much too soon to deal with and all of a sudden a company comes knocking asking if you'd sell it.

So if this goes though in the summer then what? You cannot operate two casinos by the same company in Mass. Springfield is set to open in Sept/October supposedly with a soft opening mid August. Wynn isn't done until June next year.

What one do you sell or do you turn one property into something else? Cutting either one off is going to be pretty bad PR. Giving the branding and advertising MGM has paid more for Springfield whereas rebranding for the old Wynn building will take awhile. If they sold MGM springfield they lose out on any revenues it would make, Wynn won't make anything until June next year.

Could they own the wynn casino but make it into something else?

Have they ever bought out a casino and sold it to someone else? Yes they have.

Could they have everything of a casino without actual gambling....that could happen.

Could they simply drop the casino from it but still have the hotels etc? Boston hotel prices are some of the most expensive in the country. They could without question run a successful hotel there. Maybe run conferences as it's just five miles from Logan.

The other debate is when does a handoff end? If the sale is made over the summer there's still another nine months of construction. Finish it off and then sell? Why would Wynn want to spend more on casino if they aren't going to use it? Why would any shareholders approve that?

[Dm84]

There is no money to be made in Springfield. MGM will sell the Springfield casino to whoever is interested (if anyone actually is).

I doubt they have any qualms about screwing Springfield over to operate a casino in Boston.

[mdovell]

Originally Posted by Dm84

There is no money to be made in Springfield. MGM will sell the Springfield casino to whoever is interested (if anyone actually is).

I doubt they have any qualms about screwing Springfield over to operate a casino in Boston.

If there wasn't any money they wouldn't have bid on it and would have bid on Boston to begin with

What would sell more in Boston. A casino or a resort with everything but. There's strong demand for hotels and having another convention center isn't a bad idea. UMass bought out the bay side expo center long ago.

Dm they are already legally bound to Springfield. MGC isn't going to allow a license to be transferred when another portion is dropped. Either Wynn is going to be resold after the buyout or developed into something else. As long as it stays with private ownership and isn't bought by academia or medical, housing in the form of condos might work as well.

[CaseyB]

Do the people of Everett get any say as to whether they want hundreds of new housing units in their city?

[Dm84]

Originally Posted by CaseyB

Do the people of Everett get any say as to whether they want hundreds of new housing units in their city?

Not if it becomes a 40B project.

[mdovell]

Originally Posted by CaseyB

Do the people of Everett get any say as to whether they want hundreds of new housing units in their city?

40B would be interesting but this gets complicated fast.

The state can't block MGM or any other company from buying the casino from Wynn. The Mayor might rant and rave but there's just too much baggage now with the Wynn casino. At this point it is better to just cut the losses and sell it.

MGM could just buy it and sell it to another casino operator, they have done this before. Foxwoods could be interesting because they are protesting against Wynn and it might ease the CT turf battle with MGM springfield.

Region C didn't happen because the MGC was afraid of the Wampanoag's but they are pretty much out of it. Having said that though the Brockton proposal was extremely poor to say the very least. I talked to some city councilors and they told me the company just asked like they'd get the license by default.

Too many companies bid on licenses in the state to let it lapse to the point of just one company in one region.

[CaseyB]

Originally Posted by Dm84

Not if it becomes a 40B project.

It depends upon whether they've already hit the 10% quota.

[mdovell]

Originally Posted by CaseyB

It depends upon whether they've already hit the 10% quota.

Unless some massive development said otherwise in the past year they are well below that.
Councillors Have Had Enough Of Multi-Unit Developments | Revere Journal – Revere Massachusetts Newspaper

“The City of Revere should have Safe Harbor status form the requirement of Chapter 40B since more than 1.5 percent of developable land is devoted to eligible affordable housing, as detailed and documented in an application for Safe Harbor status that has already been prepared for filing and is now available for review that shows 2.3 percent of our developable land area is devoted to eligible affordable housing."

Most 40B's do pass albeit with modification. The other aspect is they could try to use community preservation act funds to add units to public housing. That's the only real long term way around 40B but takes quite a bit of effort.

And you have amazon in the background as well. Naturally that wasn't the site Boston put in but if MGM buys it out for some price and they sell it to them for a few hundred million more who knows.

The potential redevelopment is significant.

[tysmith95]

Usually 40b is reserved for wealthy suburbs. Everett is not a wealthy suburb, it acts more as a city neighborhood.