Boston appears poised to turn back millions of dollars it is due from Wynn Resorts because it has sued the state Gaming Commission challenging the validity of the license issued to the Las Vegas gaming giant's planned casino in neighboring Everett.
Wynn attempted to deliver a check to Boston for $1 million, an up-front payment due this month as a condition of its license, but it was rejected by the city's corporation counsel, Eugene O'Flaherty.
"Pursuant to the content of the complaint filed by the City of Boston and the disagreement over the lawful issuance of the license award you reference, we will not accept the check," O'Flaherty wrote Monday night in an email obtained by the Herald to Wynn lawyer Jacqui Krum, who'd written O'Flaherty asking how the money should be delivered.
The denial raises the question of whether the city will also reject other money intended to lessen the impact of the planned casino, including a piece of a $17.5 million fund for communities that, like Boston, aren't deemed casino host or surrounding communities. Wynn paid $7.5 million into the fund, which Boston expressed interest in pursuing in November. Applications for the money are due Feb. 1.
Asked if the city plans to turn down other money owed by Wynn, Bonnie McGilpin, spokeswoman for Mayor Martin J. Walsh, said the city "is now engaged in litigation and therefore cannot comment on specifics related to the lawsuit."
"Mayor Walsh is taking this action to protect the city and the neighborhood of Charlestown," she said. "Every remedy was exhausted to date and now this matter is in the hands of the litigators seeking to present this case in court on behalf of the city."
Wynn's $1 million payment was technically made to an escrow fund controlled by the Gaming Commission for dispersal, but Boston is declining to collect it. Spokeswoman Elaine Driscoll said the commission isn't sure how long it will hold on to the funds.
"At this point, we will hold that in escrow until they are ready to claim it," Driscoll said.
The conditions on Wynn's license say the $1 million up-front payment was to cover additional public safety resources to handle increased traffic, facilitate water transportation to the casino and support community programs in bordering Charlestown.
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