A provincial government response to questions surrounding the City of Penticton‘s use of casino revenues for the South Okanagan Events Centre should lift any remaining doubts about the process, says Mayor Jake Kimberley. However, West Bench resident Michael Brydon stands by his assertion that the city is losing a big chunk of its casino revenues. The city has rel
eased a copy of a letter to Brydon from Derek Sturko, assistant deputy minister in charge of the province‘s gaming policy and enforcement division. In a response to seven questions from Brydon about the casino funding agreement, Sturko said the city will not lose gaming revenues under the deal which allows it to direct up to $40 million in DAC (Development Assistance Compensation) funding for the Events Centre project. As one of three designated “destination” casino communities in B.C., Penticton had been receiving one-sixth of net revenue from the Lake City Casino. A similar amount was available for approved infrastructure upgrades to support the casino at the Penticton Lakeside Resort. The province agreed in 2006 to direct this DAC money towards annual debt payments for the Events Centre. This will be partially offset by a reduction in the city‘s share of revenue to 10 per cent from 16.67 per cent. This matches the percentage of revenue in other cities hosting “non-destination” casinos.“The city will not forgo any revenue,” said Sturko. “Under the old agreements, the city had no DAC eligible projects and was not scheduled to receive any DAC revenue. “In total, the City of Penticton will receive considerably more revenue than it was scheduled to receive under the former agreements.” Jack Kler, the city‘s director of corporate services, said the letter “basically confirms that this council acted in good faith and the decisions they put forward were all done in an open and candid process.” Copies of the letter were distributed to the media at the close of this week‘s city council meeting. Kimberley said it confirms the city‘s assertions that the casino agreement was totally above board. “I‘m pleased that the (assistant deputy) minister has responded in such a firm way,” the mayor said. “People will hopefully get the full understanding that this has gone through a tremendous amount of process.”
Brydon, who had questioned the casino funding arrangement at a news conference earlier this year, explained this week his letter was basically an attempt to gain more information about the DAC agreement with the city. He claims the agreement is part of a provincial government move to do away with destination casinos. Sturko acknowledged in his letter that the province has renegotiated its destination casino agreements with two of the three destination casino communities (Penticton and New Westminster) and is continuing negotiations with the casino near Cranbrook to match the 10 per cent revenue-sharing level with other communities. Brydon said when the DAC agreement was announced two years ago, the city never mentioned it had lost its destination casino status. “That‘s a fair bit a month that we‘ve given up forever,” he said. “We‘ve lost as much as we‘ve gained.”
Under the new agreement, the city‘s casino revenues dropped from $2.7 million in 2006 to $1.9 million in 2007 (the first year of the DAC funding agreement). The destination casino status was scheduled to continue through to 2019. Extrapolated over 13 years, the city‘s casino revenue loss would amount to $10.4 million. Kler said this money was included in the $40-million DAC agreement.
----------------------
Don Quixote Note: Cartoon from an old Sept 06, 2006 Posting called SLEIGHT OF HAND
1 comment:
More behind the scenes manipulation. Why would anyone trust the Lottery Corp and politicians that manipulate with them. It is time for Sturko to go.
Post a Comment