Revenue Projections For Proposed Merrimack Valley Casino

The host community agreement between Penn National Gaming and the Board of Selectmen requires the company to pay the town estimated annual payments of $4.1 million should the proposed Merrimack Valley Casino receive approval.

These annual payments include:

• $3 million in estimated property taxes
• $1 million in mitigation payments (this will increase by 2.5 percent beginning in the fourth year of the agreement)
• $120,000 contributions to fund Tewksbury's capital expenditures

Attached to this post are four projections of how annual tax revenue from Merrimack Valley Casino could break down, provided by Town Manager Richard Montuori. 

The projections include Penn National Gaming's projection, a 25 percent reduction in Penn's projection, a 50 percent reduction in Penn's projection and a hybrid projection.

• The Penn projection has total annual tax revenue from the facility at $5,110,000.
• The 25 percent reduction in Penn's projection has total annual tax revenue from the facility at $4,112,500.
• The 50 percent reduction in Penn's projection has total annual tax revenue from the facility at $3,115,000.
• The hybrid projection has total annual tax revenue from the facility at $3,717,500.

Each revenue projection is based on the Fiscal Year 2013 tax rate of $25.60, and food and beverage revenue is taxed at .75 percent.

Check out the spreadsheet attached to this post for a full breakdown of each projection.