Suffolk Downs Reaches Agreement with Boston Mayor

Correction: The original post included an inaccurate figure for the amount Foxwoods MA proposes to contribute to a Milford community development fund. It proposes a total of $15 million.

Suffolk Downs has reached an agreement with Boston Mayor Tom Menino that would pay the city at least $32 million a year, plus $33.4 million in an upfront payment to its East Boston neighborhood, according to a report on Boston.com.

The news broke Tuesday afternoon, after Menino annouced the deal. The issue will go to a referendum, but the Boston City Council also will look at the agreement.

Payments to the city would increase, depending on the profit of the gaming business. According to the Globe, the casino could generate gross gaming revenue of $1 billion, which would trigger annual payments of $52 million to Boston.

The casino is one of three competing for the single resort casino license available for the Greater Boston region. Milford, which is considering an application from Foxwoods Massachusetts, and Everett, whose voters have already endorsed a proposal from Wynn Resorts, also are competing for the license.

Everett would receive $30 million in advance, and $25 million annually under its agreement with Wynn.

Milford officials are still negotiating a deal with Foxwoods. Under a preliminary draft, Foxwoods Massachusetts has proposed paying at least $18 million in annual property taxes to Milford. Another $15 million would be directed to a community development fund in three disbursements.

The casino developer also would provide several million in up-front funds for additional public safety employees. The town has published a comparison of host community agreements in Massachusetts. That report has not yet been updated with the Suffolk Downs plan.