MGM Springfield is reaching an agreement with the city to develop market-rate apartments.
Developers are looking at the old Court Square Hotel on Elm Street, about a block from the MGM casino construction site, and also a block away at the old school department building on State Street.
MGM's nearly billion-dollar casino is expected to open in the fall of 2018.
MGM Springfield President Mike Mathis says he is unconcerned about a proposed East Windsor, Connecticut facility designed to protect jobs and revenues.