Don Quixote Note: The article below dated back in May of 2004 illustrates how one of the provincial Destination Casino sites (New Westminster) negotiated a couple of clauses that NO other Destination Casino has in their contract with the Provincial Government. They had effective control over unused DAC FUNDS and could use them for city requested projects. They had 4 phases stretching all the way to 2025.
This is in effect what Penticton, the BCLC and the Casino operator in Penticton actually renegotiated in effect to transfer control of 32 million worth of DAC funds from Lake City Casino to the City of Penticton over next 13 years. The BCLC was necessary as the umbrella partner to the original agreement and the Province made an appearance to claim the Public Relations glory.
++++++++++++++++++++++
By Theresa McManus, Record reporter Wednesday, May 12, 2004 http://www.royalcityrecord.com/issues04/052204/news/052204nn7.html
The British Columbia Lottery Corporation wants to accelerate the destination casino development proposal so it's completed by 2009. Community casinos provide the host municipality with 10 per cent of net gaming wins and destination casinos provide 16 per cent (or one-sixth). In addition, destination casinos must provide a second one-sixth of net gaming revenue for economic development projects, which is known as development assistance compensation - or DAC. "New Westminster is unique. We have a destination casino and we have a community casino," said Lisa Spitale, director of strategic services. "This casino proposed in Queensborough will in fact be an amalgamation." As a result, the city will receive one-sixth of the net gaming wins (16 per cent) of the 300 slots in the destination casino, plus 10 per cent of the net gaming wins of the 300 slots in the community casino - for an average of 13 per cent of all slot machine winnings.
When Star of Fortune Gaming Management opened the Royal City Star destination casino at Westminster Quay in 1999, the city negotiated a DAC agreement and determined the use of those funds. Since then, Gateway Casinos has purchased a 50 per cent share of Star of Fortune and proposed a major casino development in Queensborough. As part of the current casino application, the city has been negotiating the DAC funding with the proponents. Because New Westminster was the first community to negotiate the use of DAC for a destination casino, it negotiated two conditions that other host municipalities have not been granted: the City of New Westminster must approve all DAC-eligible projects; and if the destination casino operator doesn't use its DAC for eligible projects, DAC may be used by the city for the construction of DAC-eligible projects. According to a staff report, the DAC funds for the Queensborough project will be available to the city as follows: park land/greenway enhancement ($1.8 million) - 2005; transportation network ($7.5 million) - 2007; and convention centre ($10 million) - 2009. The city can use the funds for those purposes at the noted dates, or it can use the funds by borrowing money and having the DAC fund repay the city at the above dates. "For us to build it and know the money is there at a later date is something new," said city solicitor Michael McAllister. "It's a great opportunity." The city's priorities of parkland/ greenway enhancement, transportation link and convention centre are allocated at 100 per cent DAC.
"I am very much supportive of the three projects that have been identified," said Coun. Jerry Dobrovolny. "They are projects that will greatly benefit the city."
Under the accelerated proposal, three phases of the DAC plan would be completed by 2009. Phases 1 to 3 will be financed from the DAC fund from cash accruing to 2013. Phase 4 would see DAC funds accumulating from 2014 to 2025 to an estimated value of $55 million. The city has developed new guidelines and principles for the use of DAC: Priority 1 - immediate casino development projects; Priority 2 - community amenity projects for Queensborough; and Priority 3 - economic development projects with linkages to the downtown and projects in the downtown. Gateway Casinos has provided a preliminary schedule for the development to the city and the B.C. Lottery Commission:
* Phase 1: construction of a 100,000 square foot casino, a 10,000 square foot restaurant, a trail network around the site, and acquisition of a future park site and/or greenway enhancement in Queensborough.
* Phase 2: construction of a 25,000 square foot sports bar and an 11-floor, 200-room apartment/hotel, and the allocation of $10 million DAC for a conference centre in the downtown.
* Phase 3: construction of a second 11-storey, 200 room apartment/ hotel and the allocation of $7.5 million DAC for the development of a transportation link between the casino and downtown.
No comments:
Post a Comment