Northeast Realty files lawsuit against Mohegan Sun - KCTV5

Northeast Realty files lawsuit against Mohegan Sun

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A rendering of the Palmer Mohegan Sun proposal. A rendering of the Palmer Mohegan Sun proposal.
PALMER, MA (WSHM) -

On Thursday, Mohegan Sun announced they were partnering with a retail advisory company, to determine options for the 152 acres they currently lease in the town.

Friday morning, the company that owns the land filed a lawsuit against the casino.

Town Councilor Paul Burns believes Mohegan should have had a Plan B all along, in case they lost their referendum vote.

They did by 94 votes back in November of last year.

Burns said it is hard for the town to put faith in the company now.

"You signed a binding legal agreement that said you were going to do x, y and z, and you didn't do it," said Burns. "Now you're making a vague promise that you might do something with some land when there is no legal contract behind it. If we can't trust your legal contract, how can we trust anything else?"

The lawsuit filed Northeast Realty in Hampden Superior Court, accuses Mohegan Sun of not living up to that agreement and claims they were in talks with Suffolk Downs in Revere prior to the vote in November.

Friday, lawyers for Northeast issued a statement.

They said they have tried to reach a mutually acceptable resolution, but:

"At every turn, Mohegan refused to engage in any substantive discussions, and finally we felt that we had no alternative but to pursue our legal remedies in court."

Burns said that should be a warning throughout the Bay State.

"What does that say to the people in Revere," asked Burns. "If you can unilaterally break a binding agreement and just say, 'oh well, it doesn't matter'. How binding is that host community agreement in Revere or in any place else?"

Friday, in a statement, Mohegan told CBS 3 that they do not comment on pending litigation, but:

"There were no discussions between Mohegan Sun and the City of Revere or Suffolk Downs prior to the defeat of our proposal in Palmer's Nov. 5 referendum."

Burns said any development on Northeast's property would require an upgrade to sewer lines.

He said if Mohegan was a true partner, they would have already stepped up to help with a solution to that issue.

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