Mohegan Realty Co. inks 99-year lease

Nov 15, 2008 9:00 PM

Staff & Wire Reports |

Northeast Realty Trust, the real estate company which represents the Mohegan Sun casino, has reportedly signed a 99-year lease with the owners of 152 acres of land in the city of Palmer in western Massachusetts just in case lawmakers in the commonwealth some day decide to approve casino gaming.

On Thursday, the Mohegan Tribe revealed that it had signed a 50-year lease on 152 acres in Palmer – a private lot just off Route 32 across from the Massachusetts Turnpike exit – with an option to renew it for another 49 years.

The specific cost of the lease was not disclosed, but Mohegan Tribal Gaming Authority vice president Paul I. Brody said they are spending millions now as an investment. There is a provision in the lease in the event that casino gambling is not made legal in the state.

This year, lawmakers in Massachusetts declined to approve casino gaming, but they may consider it again next session. Next up is to see whether or not the state Legislature and Gov. Deval L. Patrick move forward with approval of casinos and if one will be allowed in Palmer, according to Brody.

If all that were to happen, state regulators would still have to grant the Mohegan Sun a license.