Boston-Mohegan Sun Deal Official With Walsh’s Signature

Boston Mayor Martin Walsh has finalized a surrounding community agreement with Mohegan Sun over its proposed Suffolk Downs.
Boston Mayor Martin Walsh has finalized a surrounding community agreement with Mohegan Sun over its proposed Suffolk Downs.
David L. Ryan/Boston Globe

Boston Mayor Martin Walsh has signed the city’s surrounding community agreement with Mohegan Sun for its proposed Revere casino project.

As had been reported, the city will receive at least $18 million per year from the gaming company if it is awarded the state’s only Boston-area casino license, and SJC Rules Repeal of Mass. Casino Law Can Go To Ballot in November that would wipe the state’s 2011 gambling legislation off the books.

Mohegan Sun will also pay for $45 million in transportation improvements near the casino in Boston and another $30 million over 10 years for capital improvement projects in East Boston, located next door to the proposed Suffolk Downs site. And the developer says it will use local vendors at the casino and give hiring preference to East Boston residents.

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Details of the deal began to emerge over the course of this week before Walsh officially signed it this afternoon.

Walsh had fought over the course of the spring to get Boston recognition as a host community for both the proposed Revere and Everett casinos. In addition to pay-outs, that designation would have respectively given East Boston and Charlestown the opportunity to vote on whether to allow either development to be built. (East Boston voted against serving as a co-host with Revere for the casino last November, prompting Mohegan Sun to push the proposed development entirely over the Boston-Revere border.) The Massachusetts Gaming Commission denied that bid, leading Walsh to say he would consider legal action.

The surrounding community deal with Mohegan Sun marked an end to the battle, at least on the Revere side. It has not reached an agreement with Mohegan Sun’s rival developer, Wynn Resorts, which is seeking to build in Everett.

The city and Wynn were expected to hand in their final offers on a deal to an arbitrator today. One analyst speculated to The Boston Globe that the state gaming board might look more favorably on the Revere deal because of its ability to reach an agreement with the city. The commission is expected to decide between the two bids by September.