Negotiations continue for new Host Community Agreement with Encore

City Council seeks public safety facility to service casino

By Neil Zolot

The City will be pursuing the establishment of a public safety building in the Lower Broadway area paid for by Encore Boston Harbor as part of its renegotiation of the Host Community Agreement with Encore owners Realty Income Corp. The idea was brought up by Ward 1 Councillor Wayne Matewsky, who lives 1.3 miles from Encore, at the City Council meeting on Monday, February 12. “Fire engines and ambulances are going to the site almost 24 hours a day, seven days a week,” he said. “It gets on your nerves after a while and it’s only going to get worse,” a reference to expansion of casino property across Lower Broadway.

“We have expressed the importance of having a public safety building to Wynn, but we have not come to an agreement,” Mayor Carlo DeMaria’s Chief of Staff, Erin Deveney, told the Councillors. “The City and representatives for Wynn have met on several occasions and have exchanged information, and negotiations continue.”

Councillor-at-Large Katy Rogers asked if it’s possible to make Encore funding a public safety building a legal requirement for expansion. Deveney answered that the matter would require research.

The expansion is the impetus behind renegotiation. “Development across the street, with the exception of a few parcels, is owned by Wynn,” Deveney said.” We’re able to renegotiate because development across the street will have a gaming component,” although she cautioned things are still contingent on approvals by the state Environmental Protection Agency and Mass. Gaming Commission.

Realty Income Corp. properties will be generating more income and, not surprisingly, people feel the City should have a share in that. Casinos and stadiums, among other things, have agreements with their host communities to contribute to them in some way. Winthrop has a mitigation agreement with the Mass. Water Resources Authority (MWRA) because a sewage treatment plant is there; Foxboro benefits from the New England Patriots’ football stadium and Mansfield benefits from the Xfinity Center, formerly Great Woods.

City Council President Robert Van Campen feels additional funds “could transform the city.” He’s referring to money and how it can benefit a community hosting a facility that while being an asset also can add stress to its infrastructure. DeMaria has expressed similar sentiments.

A Host Community Agreement substitutes for standard property assessment. Right now, Encore pays about $33 million to Everett, $23 million of which is in the Host Community Agreement and $6.7 million in Community Impact Payments.

Wynn Resorts, Limited recently sold their land to Realty Income Corp. for $1.7 billion, which is another opportunity for restructuring. “It will give the City the ability to assess personal property not in the previous Host Agreement,” Deveney said. Personal property refers to items in commercial and industrial parcels, like office equipment and, even, barbershop chairs. At Encore it might cover gaming tables as well.

Without a new Host Community Agreement, Realty Income Corp. would pay standard assessment rates of $25 per $1,000 of assessed value across Lower Broadway.

A new Host Community Agreement will not require approval by the Council, although Deveney said DeMaria would keep them informed. “I’d encourage each of you to have open dialogue with the administration and you don’t need to wait for City Council meetings,” she said.

“I will forward the request for the City Council to review an agreement before its signature,” Deveney reacted.

Meanwhile, there are long-term plans to build a 26,000-seat soccer stadium for the New England Revolution, which is owned by NE Patriots owner Robert Kraft, and other teams in the area or other events, although things are moving slowly. Rewording of zoning to change the status of 43 acres in the area from a Designated Port Area (DPA) for other uses made its way through the State Senate, but was not included in legislation in the House of Representatives. Both State Senator Sal DiDomenico and DeMaria have expressed disappointment in the situation.

“I filed a bill that was referred to the Joint Committee on Economic Development and Emerging Technology, but the House has not come forward,” DiDomenico said. “Until that happens there can’t be a public hearing. Hopefully, they will eventually accept it before the end of the session in July. It’s a routine thing to do. It affects DPA status only, not other processes. Massachusetts General Law Chapter 91, Waterways, and MEPA reviews will still be in effect.”

A stadium, the casino and completion of Malden River waterfront access and businesses and amenities that go with them, like theatres and high-end restaurants, could transform Everett from a working-class city that was the site of polluting power plants and gas tanks into a destination for recreation. The cost of environmental work is $60-80 million, to be borne by Kraft. He has also pledged $10 million for the Affordable Housing Trust. DiDomenico called it a potential “economic boom and environmental windfall to transform a dirty area that has been polluting the air and water for decades, a blighted piece of land that is an entry to the city.”

However, development brings new sets of problems with it. A hiccup in the stadium plan could be the City’s desire to have only 75 parking spots, which would necessitate enhancing public transportation in the area. “The process will need to be robust to upgrade the infrastructure,” DiDomenico knows.