MGM SPRINGFIELD

MGM SPRINGFIELD

ADDITIONAL COMMITMENT STATUS REPORT

This report provides the status of Blue Tarp reDevelopment, LLC's and MGM Springfield reDevelopment, LLC's additional commitment obligations pursuant to Paragraph 6.1(d) of

the Host Community Agreement.

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MGM SPRINGFIELD ADDITIONAL COMMITMENT STATUS REPORT

CONTENTS

MassMutual Center and Arena. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Symphony Hall/City Stage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Additional Event Commitment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Quadrangle and Basketball Hall of Fame . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Local Business Promotion and Cross-Marketing Efforts. . . . . . . . . . . . . . . . . 3 Regional Marketing Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 General Employment Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Construction Jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Operations Jobs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Workforce Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 MBE/WBE/VBE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Opportunities for Local Business Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Surrounding Community Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Traffic Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Union Station . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Riverfront Park. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 DaVinci Park . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Skating Rink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Public Trolley. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Franconia Golf Course. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Employee Child Care. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Displaced Tenant Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Community Support Efforts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Off-Street Parking ? Springfield Parking Authority. . . . . . . . . . . . . . . . . . . . . 7 Responsible Gaming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Underage Gaming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Non-Violation of Equal Employment Opportunity Laws . . . . . . . . . . . . . . . . 7 Non-Violation of Radius Restriction and Restriction of Transfer Provisions . 7

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MGM SPRINGFIELD ADDITIONAL COMMITMENT STATUS REPORT

MGM SPRINGFIELD ADDITIONAL COMMITMENT STATUS REPORT

This report provides the status of Blue Tarp reDevelopment, LLC's and MGM Springfield reDevelopment, LLC's (collectively, "MGM") obligations pursuant to Paragraph 6.1(d) of the Host Community Agreement ("HCA").

MassMutual Center and Arena (HCA Exhibit B)

This obligation does not begin until the Operations Commencement Date. No update at this time.

Symphony Hall/City Stage (HCA Exhibit B)

This obligation does not begin until the Operations Commencement Date. No update at this time.

Additional Event Commitment (HCA Exhibit B)

This obligation does not begin until the Operations Commencement Date. No update at this time.

Quadrangle and Basketball Hall of Fame (HCA Exhibit B)

This obligation does not begin until the Operations Commencement Date. No update at this time.

Local Business Promotion and Cross-Marketing Efforts (HCA Exhibit B)

This obligation does not begin until the Operations Commencement Date. No update at this time.

Regional Marketing Efforts (HCA Exhibit B)

This obligation primarily arises upon the Operations Commencement Date. However, MGM is already in the process of undertaking regional marketing efforts including an early March, 2015 meeting with the Greater Springfield Visitors and Convention Bureau to discuss tourism marketing opportunities. In addition, MGM had an introductory meeting with the MassMutual Center to discuss marketing efforts.

General Employment Compliance (HCA Exhibit C)

MGM affirmatively states: a) It has complied with all applicable equal employment opportunity, non-discrimination and affirmative action requirements, including, but not limited to, the provisions of Chapter 151B of the Massachusetts General Laws, as amended, and all other applicable anti-discrimination and equal opportunity laws; b) It has not discriminated against any employee or applicant for employment because of race, color, religious creed, national origin, sex, sexual orientation, genetic information, military service, age, ancestry or disability; c) It has undertaken, in good faith, affirmative action measures to eliminate discriminatory barriers in terms and conditions of employment on the grounds of race, color, religious creed, national origin, sex, sexual orientation, genetic information, military service, age, ancestry or disability. Such affirmative action measures include those listed in Paragraph 1(c) of Exhibit C to the Host Community Agreement; and

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MGM SPRINGFIELD ADDITIONAL COMMITMENT STATUS REPORT

d) It has established a tracking system that tracks all of the employees that are working on or at the Project and such records and system is subject to inspection by the City of Springfield. Copies of MGM's tracking system template reports related to construction and design are attached hereto as Exhibit A. Such reports will be available to the City upon request.

Construction Jobs (HCA Exhibit C)

MGM estimates the creation of 2000 construction jobs. MGM is required to provide quarterly reports to the Massachusetts Gaming Commission. MGM will provide the same reports to the City concurrently upon submission to the Massachusetts Gaming Commission. In addition, MGM's Diversity and Affirmative Marketing Plan ("Approved Diversity Plan") was approved by the MGC on January 22, 2015; see copy attached hereto as Exhibit B. MGM affirmatively states that it has abided, and will continue to abide, by an affirmative action program of equal opportunity as approved by the Massachusetts Gaming Commission.

Operations Jobs (HCA Exhibit C)

As of the date of this report, MGM has created and maintained six (6) full-time Operations Jobs. Four (4) of those employees are residents of the Greater Springfield area, including two residents of the City of Springfield. MGM is working closely with the Massachusetts Casino Careers Training Institute (MCCTI) to provide City residents with information and access to training programs relating to positions at the Project. MGM, in partnership with Holyoke Community College and Springfield Technical Community College, is designing strategic plans and implementation models to increase the capacity of training and educational programs to prepare the workforce for the opening of the Project in Fall 2017. Since 2012, MGM has been in contact with career services teams and the Regional Employment Board to understand the talent and skills available and to engage with the community on the topic of career opportunities. In the past three years, MGM and representatives of MGM Resorts International have participated in career fairs at UMass Amherst, Springfield College, Boston University, American International College and the National Society of Minorities in Hospitality Northeast Regional Conference in Amherst. MGM has sponsored and attended programs in Western Massachusetts since 2012, where its team has created personal contact with students enrolled in two-year and four-year college degree programs in hospitality, culinary arts, management, operations and IT systems. Additionally, through the partnerships with the Massachusetts Casino Careers Training Institute, UMass Amherst and other four-year college partners in Western Massachusetts, MGM is collaborating on curriculum development to prepare individuals for potential job opportunities through job readiness classes, English as a Second Language courses, and increasing the availability of adult basic education courses. Additionally, MGM Resorts International has recruited and hired students from Western Massachusetts for internship and management training opportunities in our Las Vegas properties. These students, representing a number of Springfield and regional institutions of higher education, are receiving hands-on experience in a variety of operational areas and gaining management insights from mentors and executives of MGM Resorts International. The remainder of this obligation does not begin until the Operations Commencement Date and, therefore, requires no further update at this time.

Workforce Development (HCA Exhibit C)

As noted above, MGM is in the process of developing a training program to offer workforce skills development courses to City residents. The remainder of this obligation does not begin until the Operations Commencement Date and, therefore, reuires no further update at this time.

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MGM SPRINGFIELD ADDITIONAL COMMITMENT STATUS REPORT

MBE/WBE/VBE (HCA Exhibit C)

In accordance with its Approved Diversity Plan, MGM continues to use best efforts to award contracts for the design and construction of the Project to Minority-Owned Businesses, Women-Owned Businesses and Veteran-Owned Businesses in the following percentages: 5%, 10% and 2%, respectively. See the Diversity Commitment Reports for Design and Construction attached hereto as Exhibit C for details on the percentages of awards to date to minority, woman and veteran owned businesses. In addition, MGM is in the process of setting up training and seminar sessions to educate businesses and assist businesses in applying for MBE, WBE and VBE certification. The remainder of this obligation does not begin until the Operations Commencement Date and, therefore, requires no further update at this time.

Opportunities for Local Business Owners (HCA Exhibit C)

MGM's obligations to use best efforts to ensure that at least Fifty Million Dollars ($50,000,000) of its annual biddable goods and services are prioritized for local procurement, and to work with local business associations to educate businesses on the opportunities provided by MGM's commitment to source such goods and services locally, does not begin until the Operations Commencement Date. However, since 2013, MGM has sponsored or participated in a number of engagement events in Western Massachusetts and the Commonwealth. A sampling of these activities is listed below:

? In 2013, MGM Resorts International, MGM's parent company, invited members of area chambers of commerce to a presentation on its vision for MGM at the Basketball Hall of Fame and to meet MGM Resorts International's financial executive team. At that same event, MGM Resorts International presented the commitments it was, and is, prepared to make in engaging businesses throughout Western Massachusetts as suppliers, vendors and services contractors.

? MGM continues to meet regularly and work closely with the Affiliated Chambers of Commerce of Greater Springfield to provide information regarding opportunities for local sourcing of goods and services by its member businesses.

? For three years in a row, MGM Resorts International representatives from its diversity relations and procurement teams have manned a booth at the Western Mass Business Expo held at the MassMututal Center.

? In the fall of 2014, MGM hosted a regional vendor showcase at DCU Center in Worcester in cooperation with Penn Gaming, which attracted business owners, suppliers and vendors from the Central Massachusetts area.

? Also in the fall of 2014, MGM Resorts International participated in the matchmaking sessions with women business owners at the Women's Business Expo sponsored by the Center for Women in Business and Enterprise in Natick, Massachusetts.

? As a result of MGM's outreach, 140 suppliers from Massachusetts registered in the MGM Resorts International vendor database by the end of 2014 with 93 of those businesses with addresses from Springfield and West Springfield. Thirty-five percent of those registered in 2014 were classified as having diverse business ownership. As of February 2015, the number of businesses registered with the MGM Resorts International procurement team stands at 206 and will continue to grow.

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