SPRINGFIELD, the only Massachusetts city weighing two competing casino bids, has put its chips on MGM Springfield. On Tuesday Mayor Domenic Sarno announced that he had concluded a host community agreement with Blue Tarp Development, the MGM-backed casino development company headed by Springfield real estate mogul Paul Picknelly.
In so doing, Sarno also picked sides in a sibling battle that pitted Paul Picknelly against his older brother Peter Picknelly, chairman of Peter Pan Bus Lines and a partner in with Penn National Gaming in the competing casino proposal that lost out. Springfield’s all-in-the-family casino smackdown was teed up in the current issue of CommonWealth.
MGM has proposed an $850 million casino project for the South End area of Springfield’s downtown. As part of the deal, the city would receive an advance $15 million lump sum payment and $25 million annually once the casino opens. About 3,100 jobs come with the MGM plan.
As mayor, Sarno had unilateral authority to choose which developer to negotiate an agreement with. Sarno’s roots in the South End of the city run deep. He grew up in the neighborhood, represented the area on the City Council before he became mayor, and served as the head of the neighborhood’s community center. This section of the city, which would see millions of dollars of redevelopment under the MGM plan, also incurred significant damage during the tornado that tore through the region in 2011.
Peter Picknelly’s plan with Penn National Gaming called for a casino in the North End neighborhood that included land now occupied by the Peter Pan bus depot and the Springfield Republican newspaper. Peter A., as he is sometimes known locally, had pulled at all the stops on the Penn National bid. Despite Sarno’s South End ties, many residents thought that Peter Picknelly had the edge. He became the local face of the Penn National plan and was seen often seen around town at the company’s promotional events. In partnering with Penn National, Picknelly stressed his deep roots in the city and his interest siting a casino in roughly the same place in the North End that his late father, Peter L. Picknelly, the Peter Pan Bus Lines magnate, had proposed some 20 years ago.
But Peter A. may have overreached in his negotiations with the city. He had signed a non-binding letter of intent to move his bus operations to a renovated Union Station train depot, part of a plan to create a single, multi-modal transit hub in the city. However, he unexpectedly announced in mid-March that he would keep Peter Pan’s bus operations in the North End if Penn National’s casino proposal did not get the go-ahead from Springfield officials.
His ultimatum came as an unpleasant surprise to city officials and to the community at-large. “If that position is meant to push the process or somehow influence the process, it’s not proper,” Kevin Kennedy, the city’s chief economic development officer, told The Republican at the time. Peter’s petulance also provided fodder for local talk radio audiences. If Penn National had any early advantage in Springfield, Picknelly’s comments may have chipped away at it.
Penn National may also have underestimated the dollars that MGM was willing to sink into a well-thought out, political-style public relations campaign to garner local support. According to a Boston Globe report, as of early April, MGM had spent about $10 million on outreach, setting up shop in a large, centrally located downtown casino office that offered residents a range of informational flyers, bumper stickers, and other tchotchkes. Stop by Penn National’s smaller dimly storefront office in a grittier downtown area and the best you could do was a single glossy information flyer.
Before his death, the senior Picknelly tapped Paul to run Monarch Enterprises, the family’s real estate development arm, while Peter remained at the helm of the bus company. The move helped minimize the sibling tension already roiling the family business. It may also have given Paul Picknelly, who has built a reputation for savvy real estate maneuverings, an edge years later when it came to the battle for rights to build a casino.
Paul operated mostly out of the public eye on the MGM proposal. He refused to be interviewed for the CommonWealth story, emailing statement about his role casino project. Meanwhile, MGM declined to comment on Picknelly’s financial stake in the project.
The Springfield City Council must ratify the agreement with MGM before it goes before city voters, who will have the final say on whether Springfield gives a green light to casino gambling. A referendum is likely as early as mid July. Meanwhile, Palmer and West Springfield are also in the running for the single Western Massachusetts casino license up for grabs.
