Armory Zanetti file.jpg

MGM Springfield is seeking to finalize the purchase of the old State Armory building, left, and former Zanetti School building, right, on Howard Street as part of its casino plan for the South End of Springfield.

(File photo / The Republican)

SPRINGFIELD – The City Council will consider granting final approval Monday for the sale of two city-owned properties to MGM Springfield for $3.2 million, a key step in plans for a casino in the South End.

The sale is proceeding despite a recent ruling by the Supreme Judicial Court that is requiring a statewide referendum vote on casinos.

On Monday, the council will consider approving the sale of the former State Armory building, 29 Howard St., and the former Zanetti School, 59 Howard St., for $1.6 million each to MGM.

MGM, through Blue Tarp Redevelopment, submitted the high bids for each property during a formal request for proposals in December, and was selected as the “preferred developer” of each site in February, subject to City Council approval.

The closing on the properties will proceed, scheduled by July 31, according to representatives of the city and MGM.

"The Old Armory and the Zanetti School are key acquisitions for MGM Springfield, and represent our eagerness to fulfill our host community commitments,” said Carole Brennan, an MGM Springfield spokeswoman in a prepared release. “While some may want to stop progress, it is important for the City and MGM Springfield to respect the voters of Springfield, and begin to move forward together to bring jobs and opportunity to residents as soon as possible."

Springfield voters approved the casino last year, but casino opponents in Massachusetts filed an appeal for a statewide referendum.

Both of the properties were severely damaged in the tornado of June 1, 2011. MGM plans to preserve a front facade of the old armory, and demolish the former school, as part of its casino development.

The council meeting begins at 7 p.m. at City Hall.

Kevin Kennedy, the city’s chief development officer, said the sale of the Howard Street sites to MGM followed the same process as has occurred with many other city-owned properties, by seeking competitive bids.

MGM has already paid a $500,000 deposit on the two properties in accordance with its agreement to buy the sites, Kennedy said.

“They have demonstrated to us that they honor their agreements with us, whether it is through an RFP (request for proposals) process or through the host community agreement,” Kennedy said.

The closing is scheduled by July 31, barring any unforeseen circumstances, Kennedy said. The $3.2 million will go to the city’s general fund.

In addition, MGM paid the city $1 million in June, as one of its negotiated requirements in its host community agreement with Springfield.