Suffolk Downs and Caesars Entertainment have reached an agreement with Boston Mayor Thomas Menino to bring a billion-dollar casino resort to the East Boston horse racetrack that could generate annual payments of $52 million to city coffers.
If Caesars Entertainment, one of three Greater Boston casino contenders, gets the go-ahead for the state license, the casino developer would hand over more than $33 million for community investments in East Boston, and more than $45 million in transportation and infrastructure improvements, according to the racetrack owners.
"We are proud of the strong partnership we have built with Boston as well as our neighboring communities," said Joe O’Donnell, principal owner of Suffolk Downs. "Our proposed development will directly benefit Boston with annual payments as well as up-front investments in schools, parks, vital services and transportation improvements."
The proposed billion-dollar resort casino will include two gaming areas of 150,000 to 250,000 square feet with between 4,000 to 6,600 gambling options; two luxury hotels with 450 rooms; up to 30,000 square feet of retail space, including a spa, thoroughbred horse racing and simulcast wagering; 1,700 and 2,600 restaurant seats; and a seven-story parking garage with up to 2,600 spaces, valet parking for up to 460 additional vehicles, and up to approximately 2,100 surface parking spaces.
The developer has committed to spend $50 million annually on "goods and services" in the city of Boston, "and shall spend $5 million annually in goods and services specifically in East Boston," according to information from Mayor Menino’s press office. Additionally, City Hall will establish a "community trust guaranteed" to receive $20 million annually to mitigate impacts to the host community, according to the press office.
"The agreement I have just signed has more revenue, more guaranteed jobs, and more protections than any other agreement in the region, and the Commonwealth," Menino said in a statement.
To hold the developer accountable for the construction work, the agreement includes penalties for non-compliance to ensure security. Penalty on deviation from the construction schedule will be $55,000 each day; penalty on the payment schedule will cost $88,000 each day; and the penalty on all other non-monetary requirements will be up to $25,000 a day.
