Negotiating a Side deal with Lake City Casino should have been a no-brainer ! That it was NOT even put up for a vote as a condition of relocation was a product of ignorance and fear from some councilors on the no side and the frustration and resignation of those councilors who pushed for a better deal and more money.
'Lippert is confident an agreement for additional funds can be worked out with Lake City Casinos. “We will continue to work to get more. When they were at the public hearing, they said they wanted to be good corporate citizens,”'
Well the Mayor And Administrator tried and the answer from the Casino is NO. (Agenda Package (P. 81) Email dated Jan 17, 2008, from Mr. Steve Kumpf, Vice President Operations – Okanagan, Lake City Casinos Administration Office, re: Social Responsibility Fund. )
The Casino failed to see the Public Relations Value of presenting a Cheque for $50,000 to the Mayor as a matching contribution to the City's $50,000 annually for a Social Responsibility fund. (see below for details of Vancouver's $200,000 Annual Fund). The Casino could have approached the Province to take $50,000 from the more than $123,000 that they have been directed to pay for a joint marketing fee that increased from 0.75% to 1.5% of net win and that they will now be forced to pay for the first time at the Vernon Casino. (see details below)
The City will have to debate raising the Business licence Fee charge of $20 per slot machine to a more reasonable franchise fee type charge of $145 per slot machine. This will raise $58,000 per year and the City can dedicate $50,000 of this revenue annually to the Social Responsibility Fund.
Each Slot machine in Vernon had an average win of more than $125,000. Increasing our licensing fee to offset the costs of addiction. policing etc. is a way of providing a Reserve that can be used for all social addictions.
Will our Council step up to the plate and set up such a Funding reserve ? If it is good enough for Vancouver it is fair that Vernon do so too.
At the same time the City should also debate a maximum limit of 400 slot machines in total slots being allowed in Vernon. By including this in the zoning bylaws it retains the Council's option to approve any further expansion of gaming. Without it, any future expansion at this site could be at the discretion of the BCLC and their men in black.
----------------------
Vancouver's $200,000 Annual Fund
http://www.city.vancouver.bc.ca/ctyclerk/cclerk/20070612/documents/a7.pdf
http://www.city.vancouver.bc.ca/ctyclerk/cclerk/20061003/documents/a6.pdf
http://www.city.vancouver.bc.ca/ctyclerk/cclerk/20050913/documents/a7.pdf
Above are the 3 reports from the City of Vancouver for 2005 - 2006- 2007 concerning the Social Responsibility Fund - Edgewater Casino side agreement in which the City Of Vancouver receives $200,000 EACH YEAR towards a Social Responsibility fund.
Joint marketing fee
On April 1, 2006, the joint marketing fee increased from 0.75% to 1.5% of net win, which amounted to an increase in marketing and promotion expenses at the Burnaby Casino of $325,000 in the six months ended June 2007 from the same period in 2006. These funds, as well as those paid by other operators, are placed in a joint marketing fund held by the BCLC to promote BC’s casino industry, both within and outside the province. Of the Fund’s casinos, the Burnaby Casino and Cascades Casino are the only two casinos that currently contribute to this fund. )
Vernon's Lake City Casino will probably have to contribute the 1.5% of net win if expansion and relocation is approved. I had calculated the Casino operators share at $8,205,832 million or 28.75% of the gross win of $28,540,144. A 1.5% promotional contribution will be $123,087. Perhaps the BCLC will give up the increase and allow the Casino to pay 1/2 of this money to the City of Vernon Annually for a Social Responsibility Fund ? This would go a long way towards a satisfactory annual contribution by the Casino operator towards the public benefit that is asked from all developers.
City of Vernon BUSINESS LICENCE BYLAW #3272
08 Casino................................................................................................. 110.00 +
+ $20.00/table/slot machine
No comments:
Post a Comment