Code of Massachusetts Regulations › 205 CMR - MASSACHUSETTS GAMING COMMISSION › Title 205 CMR 122.00 - Capital Investment › Section 122.03 - Costs Included in the Calculation of Capital Investment

Current through Register 1525, July 5, 2024
For purposes of calculating the capital investment for a
				category 1 or category 2 gaming license, the following costs shall be
				included:
(1) Costs related to the
			 actual construction of the gaming establishment and site including any hotels,
			 gaming areas, and other amenities, including overhead and indirect costs
			 attributable to the construction activities.
(2) Costs related to preparation of the site
			 including, clearing, demolition and abatement.
(3) Costs related to the design of the
			 project, including building design, interior design, and exterior site
			 design.
(4) Costs associated with
			 consulting and due-diligence necessary to fund studies and devise engineering
			 solutions in accordance with M.G.L. c. 23K including traffic studies,
			 environmental studies, and other associated mitigation studies.
(5) Costs associated with minimizing the
			 environmental impact of the project including upfront costs aimed at minimizing
			 a carbon footprint or implementing sustainable elements and/or smart growth
			 practices.
(6) Costs associated
			 with designing, improving or constructing the infrastructure inside the
			 property boundaries of the site of the gaming establishment including those
			 related to drainage, utility support, roadways, interchanges, fill and soil or
			 groundwater or surface water contamination issues, sewer, storm water,
			 landscaping, and public transportation. Provided, however, in accordance with
			 M.G.L. c. 23K, § 11(a), that any infrastructure improvements necessary to
			 increase visitor capacity and account for traffic mitigation for a category 2
			 gaming establishment shall not be considered as part of the capital investment
			 in a category 2 gaming establishment license application.
(7) Costs associated with the pre-opening
			 purchase of fixtures, equipment, gaming equipment, information technology
			 equipment, and personal property to be used within the gaming establishment and
			 site including those within hotels, restaurants, retail and other service
			 businesses associated with the establishment.
(8) Costs associated with applying for
			 federal, state, or municipal permits.
(9) Professional and management fees
			 including for engineers, architects, developers, contractors, or operators to
			 the extent that they represent indirect and overhead costs related to the
			 development of the project, and do not represent profits or payout as part of
			 partnership agreements or "home office" overhead (
i.e
., out of
			 state).
(10) Costs associated with
			 the safety, training, quality assurance, or testing incurred during the
			 construction of the gaming establishment and site.
(11) (For Region C applicants) Capitalized
			 interest.
(12) (For Region C
			 applicants) Costs associated with designing, improving or constructing the
			 infrastructure outside the property boundaries of the site of the gaming
			 establishment including those related to drainage, utility support, roadways,
			 interchanges, fill and soil or groundwater or surface water contamination
			 issues, sewer, storm water, landscaping, and public transportation whether or
			 not such costs are the result of a host community agreement, a surrounding
			 community agreement, required by any regulatory body or as part of the
			 permitting process.