MGM Springfield Project Demolition To Start In January 2016

MGM Springfield has had a rough couple of months as casino officials have been summoned by the Massachusetts state gaming commission to explain why a 14% reduction to the original proposal was being made. The state gaming commission made it clear that they weren’t very happy with the proposed changes as it would reduce the number of employment opportunities the $800 million facility was going to create and also reduce the gaming revenue the state was expecting to collect.

After MGM reaffirmed its commitment to the city of Springfield and confirmed that the overall estimate of project spending would be around $950 million, the state gaming commission finally gave MGM Springfield the green-light to proceed with the demolition process and confirmed that the new proposal would be review before a decision would be made on proceeding with construction.

MGM Springfield has confirmed that demolition work will commence from January 2016 and the Zanetti School will be one of the firms buildings to be demolished. The biggest task for the demolition crew will be to re-locate the First Spiritualist Church to a new location which is just a couple of blocks away. This shifting is critical as the First Spiritualist Church was built in 1887 and the crew must come up with a strategy that does not damage the church in the shifting process.

MGM Springfield has engaged a number of contracts to assist in the demolition and construction process and one of those contracts are Tishman Construction. The company has been fighting a lawsuit filed by former clients who allege that Tishman Construction defrauded them during a 10 year period from 1999 and 2009 as they billed them for extra man hours and unworked hours to the tune of $5 million. The company has worked on construction for a number of major companies including the One World Trade Center, GM Mirage CityCenter complex and the Bank of America Tower in New York City.

Tishman Construction was found guilty of federal fraud charges and has been hit with a $20 million fine. In a statement, Robert Capers, U.S. Attorney for the Eastern District of New York said

Through a systemic practice, Tishman Construction bilked its clients by charging them for unworked time and at rates higher than those bargained for by their clients. By doing so, Tishman Construction defrauded its clients and abused the trust placed in it to provide construction services on some of New York’s most storied buildings.

MGM Springfield is yet to release any statement over the Tishman Construction ruling.