Monday, February 25, 2008

Tribe's Expansion Budget Increases Approved By Bankers

Feather News

The vision of Mohegan Sun becoming a world-class destination coupled with increased gaming competition in the Northeast resulted in a November 2006 tribal annnouncement for a massive expansion planned at its Connecticut casino. The $800 million expansion budget was increased to $925 million in recent months and the tribe's bankers approved on Feb. 13 a total Connecticut expansion budget up to $950 million.

The expansion budget at the Mohegan's Pocono Downs facility in Pennsylvania was also increased from the $140 to $150 million budget announced in November 2006 to $215 million, also approved by the tribe's bankers on Feb 13.

The tribe asked for a $5 million grant from a Pennsylvania economic development fund that was set up out of Pennsylvania casino revenues and designated to be used for health and development projects in the state. The tribe's $5 million request would be used to remove garbage to enlarge the parking lot at the Pocono Downs facility and it has created a controversy over whether the tribe should be awarded such a large grant out of that fund, according to the Times Leader. The $5 million grant, if approved, would deplete half of the $10 million in funds available under the program.

Follow the controversy in the Times Leader newspaper articles:

December 2007 Feather News expansion budget article: