Up to $76 million in total mitigation payments to be made
LAS VEGAS—(January 7 2015)—Wynn Everett made the first payment in its mitigation package for the City of Boston/Charlestown today. The upfront payment of $1 million is the first in a mitigation package agreed to by Wynn that could reach $76 million.
The initial payment was required as part of a package set forth in the Massachusetts Gaming Commission License Award to Wynn. The package was imposed when the City of Boston failed to participate in discussions regarding a Surrounding Community Agreement and traffic mitigation to support Charlestown for the Wynn Resort to be built in Everett. According to the License Agreement, the $1 million payment is to be used for 1) support of Charlestown’s nonprofits, parks, after-school activities, senior programs, job training programs, cultural events and related activities that promote Charlestown’s heritage, quality of life, recreational and cultural activities 2) staffing and other public safety initiatives related to increased vehicular and pedestrian traffic, and 3) improvements to facilitate water transportation in the Boston Harbor. Wynn is unaware of what specific uses the City of Boston intends.
The package of $56 million minimum on Boston's behalf was imposed by the Commission to cover impacts from the Wynn project, including traffic mitigation for Sullivan Square in Charlestown. Wynn agreed to the package and it was then included in the project's licensing agreement.
The Boston/Sullivan Square mitigation package includes:
• $1 million upfront payment
• $24 million in total annual payments to the City of Boston
• $25 million toward a long-term traffic solution for Sullivan Square in Charlestown
• $6 million in short-term Sullivan Square traffic mitigation
In addition, up to $20 million in fees may be assessed by the Commission if the project fails to meet its traffic projections. The package also includes a commitment by Wynn to spend at least $15 million in annual purchasing from Boston businesses; $225 million over the term of the license. The company will also hold vendor and career fairs in the City of Boston, to educate and attract future construction and operational vendors, and to appeal to potential resort employees who live in Boston.
"We believe the $56 million package for Boston, which is primarily dedicated to Charlestown traffic solutions, will be critical in solving the decades-long problems of Sullivan Square. The package is comprehensive in that it also includes vendor and employee commitments consistent with our other Surrounding Community Agreements. This initial payment, so closely following the acquisition of our land parcel, is still another step that keeps us on track to make our 5-star resort a reality," said Robert DeSalvio, President of Wynn Everett.
The check was delivered to the Gaming Commission offices to be held in escrow for the City, after the City refused to accept the check.