Artist's rendering of a proposed commercial casino in New Bedford, Massachusetts. Image from KG Urban Enterprises
A non-Indian developer that was working with the Mashantucket Pequot Tribal Nation on a commercial casino in Massachusetts has dropped out of the race. KG Urban Enterprises said it was unable to secure financing for the $650 million in the city of New Bedford. The firm had won local support for the facility, which would have been managed by the tribe from neighboring Connecticut. “Given the uncertainty of obtaining viable financing for the project and the time constraints of the license application process we cannot justify investing any additional funds in the project beyond the significant amount already invested," chief executive Barry Gosin wrote in a letter to the Massachusetts Gaming Commission, according to news reports.
The New England Casino Race: Tribal and commercial gaming facilities in Connecticut, Massachusetts and Rhode Island
KG Urban's withdrawal leaves just one developer in the running for the southeastern region of the state. However, the commission may never award a license due to uncertainty surrounding the casino sought by the Mashpee Wampanoag Tribe. “The reluctance of lenders to provide the requisite financing is due to several factors, including the possibility of competition from a nearby Indian casino which would pay no taxes or other compensation to the commonwealth,” Gosin's letter stated, The Boston Herald reported. The tribe's First Light Resort and Casino has yet to gain approval from the Bureau of Indian Affairs despite years of review. Get the Story:
New Bedford developer drops out of casino competition (The Worcester Telegram Lack of funding sinks New Bedford casino plan (The Boston Herald 7/23)
Developer abandons proposed New Bedford casino Foxwoods would have managed (The New London Day 7/23) DOI Solicitor Opinion:
M-37029: The Meaning of "Under Federal Jurisdiction" for Purposes of the Indian Reorganization Act (March 12, 2014) Federal Register Notice:
Final Environmental Impact Statement for the Proposed Fee-to-Trust Transfer of Property and Subsequent Development of a Resort/Hotel and Ancillary Facilities in the City of Taunton, MA and Tribal Government Facilities in the Town of Mashpee, MA by the Mashpee Wampanoag Tribe (September 5, 2014)
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