Longmeadow wins arbitration hearing

LONGMEADOW, Mass. (WWLP) – An arbitration panel has sided with Longmeadow over MGM for its surrounding community agreement. Longmeadow will receive an upfront payment of $850,000 and 13 annual payments of $275,000.

In a news release sent to 22News, Longmeadow says it will receive a baseline value $4.425 million over 15 years with an additional annual inflationary increase as well as direct reimbursement of legal and consultant costs incurred through this process.

MGM’s Best and Final Offer gave Longmeadow two options: (1) one limited to only certain traffic intersections, with a fixed value of $200,000 and a potential overall value of up to $800,000; and (2) another based on a cumulative value of $1.6 million with a “look back” provision to address impacts after they had already occurred.

MGM Springfield spokesman Carole Brennan sent 22News this statement:

“While MGM respects the arbitrators’ and the town’s hard work in this matter, we are disappointed with this latest decision.  We strongly disagree that Longmeadow will be impacted any more than the other similar sized and proximate surrounding communities.  The Massachusetts Gaming Commission will now make final determinations on the two outstanding negotiations, with Longmeadow and West Springfield.  We have submitted objections for its consideration, and we look to the Commission’s review of the terms of the arbitrators’ decision for the final say on this matter.”

On Friday, a different arbitration panel ruled in favor of West Springfield over MGM.

West Springfield should receive $425,000 per year, $375,000 of that is an impact payment that will increase each year, based on the consumer price index (CPI).

West Springfield will receive $665,000 upfront for the Memorial Avenue engineering design to repair/replace this road, plus payments for consultant costs (likely around $150k).

MGM had already agreed to surrounding community deals with Ludlow, Wilbraham, East Longmeadow, Chicopee, Agawam and Holyoke.

MGM representatives will go in front of the Gaming Commission on Friday and ask if the arbitrators followed the letter of the law, the way it was written and see if their were any inconsistencies.

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