MGM hasn't seen the business it expected, but promises growth
SPRINGFIELD Three thousand jobs.
Thats the promise MGM made the city of Springfield in order to get the license to build its $1 billion resort in Springfield. Its a number memorialized in MGM Resorts Internationals host community agreement with the city.
But its just not realistic, said MGM Resorts International CEO and President William Hornbuckle Friday after an hour-long meeting with Springfield Mayor Domenic J. Sarno and others.
Hornbuckle was invited to Springfield by a concerned Sarno and City Council Casino Oversight Committee Chairman Michael Fenton. His trip coincides with MGMs hosting of the Red Sox Winter weekend Friday and Saturday and comes about a week before MGM opens its legal sports book on the property Jan. 31, part of Massachusetts foray into legal sports gambling.
MGM Resorts International president and chief executive officer William Hornbuckle speaks during the meeting held at Springfield mayor Domenic J. Sarno's office Friday morning, Jan. 20, 2023. (Hoang 'Leon' Nguyen / The Republican)
Hornbuckle, whose work in getting MGM Springfield built stretches back to 2014 and lived here for a time, confirmed his personal and the companys commitment to the property and recited a punch list steps including extended restaurant hours and reopened attractions at the nearly five-year-old casino MGM plans to take in 2023.
But he also gave for the first time publicly a straightforward assessment of MGM Springfields performance.
Our original valuation of this market simply was off full stop, Hornbuckle told reporters gathered in the office of Sarnos chief of staff, Thomas M. Ashe. We are where we are now.
He also said that if the market conditions in Springfield were fully understood at the time, the casino might not have been built.
We thought there would be more business here than ultimately materialized, Hornbuckle said Scale, scope, etcetera. It is what it is.
Right now, MGM Springfield has about 1,400 employees, he said. There are also 279 open positions that MGM would like to fill. Realistically, 2,000 employees is a rational goal.
If its three things, something has dynamically changed in this marketplace. It has to, to have that happen, he said. There is capacity in that building for 3,000 jobs. But it is going to involve making Springfield more of a destination. We cant do that alone.
MGM Springfield opened in August 2018 with about 3,000 employees. But the number fell. Just prior to the COVID shutdowns in March 2020, MGM had 2,000 employees. In July 2020, it reopened with 700 workers after a round of layoffs.
Hornbuckle said MGM needs to do a better job communicating all the way around, whether with the city and especially in telling its story to potential employees.
Sarno called it a productive meeting and praised Hornbuckle for committing to reopen and rejuvenate a property that was starting to stagnate even after COVID restrictions were lifted.
Councilor Fenton said afterward that some part of the host community agreement were contractual and some were aspirational.
City councilor and chair of casino oversight committee Michael A. Fenton speaks during the meeting held at Springfield mayor Domenic J. Sarno's office Friday morning, Jan. 20, 2023. (Hoang 'Leon' Nguyen / The Republican)
What he wanted to see,, more than anything, was the casino spark investment on Main Street and on State and Union streets.
And we have seen that, Fenton said. And weve seen the seeds be planted for future development in this post COVID-19 environment.
Fenton pointed to the citys efforts to redevelop the Masonic Block at State and Main.
Sarno referred to the ongoing 31 Elm redevelopment partially financed by MGM.
We are starting to get our mojo back, Sarno said.
State Rep. Bud L. Williams, D-Springfield, has been critical of MGMs lack of reopening progress and has called for a Western Massachusetts representative on the state Gaming Commission.
The Gaming Commission hasnt had a member from Western Massachusetts since Bruce Stebbins, formerly of Springfield and a former city councilor, served from April 2012 to January 2021.
Williams specifically pointed to MGMs building at State and Main 1200 Main St. which still has concrete jersey barriers, a temporary-looking awning and is mostly vacant.
Springfield mayor Domenic J. Sarno meets with MGM Springfield president and chief operating officer Chris Kelley, MGM Resorts International president and chief executive officer William Hornbuckle, and city councilor and chair of casino oversight committee Michael A. Fenton Friday morning, Jan. 20, 2023. (Hoang 'Leon' Nguyen / The Republican)
Williams wasnt invited to the closed-door meeting and subsequent press conference in City Hall Friday. But he said he has met recently with MGM executives and hopes to set up a meeting soon between management and the city s Black and Latino communities.
Friday, Hornbuckle and MGM Springfield President and COO Chris Kelley said there are no plans for 1200 Main St. at this time.
I can give them a plan if they cant find one, Williams said. They are very smart people. And they have money. If that building was in Everett or Boston, (the Gaming Commission) would not tolerate it.
Everett is the home of Encore Boston Harbor, the states only other resort-style casino.
Hornbuckle ran through a list of plans for other reopening plans in addition to the sports book.
In the next few months, MGM plans to:Add lunch operations to TAP Sports Bar on Thursday and Friday, which currently is open for dinner seven days a week; Expand hours at the Roasted Bean coffee shop to 10 p.m. seven days a week; Eliminate the need for reservations at Top Golf Fridays to Sundays. The simulator has been open for months to groups with reservations. Open TAP Bowling seven days a week, which currently is open Friday to Sunday only; and Open Indian Motorcycle retail Fridays to Sundays.
In the second quarter, MGM plans to:Open Chandler Steakhouse on Thursdays, as well as Friday to Sunday; Open Hotel Lobby Bar from Friday to Sunday; and Finalize a path to reopen Kringle Candle.
In the third quarter of 2023:MGM Springfield will reopen The Salon on Main Street; and Formally reevaluate ongoing operations to adjust the operations of its amenities as necessary.
But both Hornbuckle, an Indian Motorcycle collector, and Kelley said that the Indian concept isnt working and theyd like to find a different attraction to fill the space.
Same goes for the closed Kringle Candle shop. Kelley said hes searching for something that would fill that space in a renovated former church building that was moved from elsewhere on the site.
Hornbuckle said MGM has met its financial commitments, generating $347 million taxes to state, $107 million to city and just more than $7 million to surrounding towns since its opening.
Kelley said MGMs offerings are driven by consumer demand.
MGM Springfield reported $22.47 million in gross gambling revenue from slot machines and table games in December, part of a record-breaking haul for the states three casinos.
That $22.47 million was up from $22.03 million in November 2022 and from $22.2 million recorded a year ago in December 2021.