May 01--Springfield stands to haul in $25 million a year under a proposed deal struck with MGM yesterday as the city chose to go all in on the Las Vegas firm's nearly $1 billion casino plan.

"It's a great deal for the city," said MGM Resorts president Bill Hornbuckle. "It's been a long journey, but we're excited."

Springfield Mayor Domenic Sarno picked MGM over another plan by regional gaming powerhouse Penn National. Penn, which paid a non-refundable $400,000 preliminary application fee to the state, is out of the game in Springfield but could still pursue a state gaming license in western Massachusetts -- or elsewhere, including southeastern Massachusetts, which was recently opened up to commercial bidders.

"We are obviously disappointed," Penn senior vice president of communications Eric Schippers said. "We put forth the very best package we felt we could justify from a shareholder-return perspective."

MGM will be competing for the sole western Massachusetts license against Hard Rock, which is considering building a casino at the Big E in West Springfield, and Mohegan Sun, which is targeting a Palmer site. Hornbuckle said if MGM is granted the license early next year, the 850,000-square-foot casino/entertainment mecca could be open by summer 2016.

According to a host community agreement, the project includes a 200,000-square-foot hotel, a 125,000-square-foot casino and 7,000 square feet of retail space.

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