Report Released on Proposed Casino in Toronto
Toronto city manager Joe Pennachetti published his findings ahead of an executive vote to move forward with the proposal to construct a mega gambling and tourism complex in the city.
Pennachetti recommended that Toronto offer the Ontario Lottery and Gambling Corp to host the casino in the downtown core or at Exhibition Place, on condition of 43 requirements.
The main requirement - and the one attracting the most attention at present - is that Toronto is assured 50% of the casino's gaming revenues, which could reach sums of up to $148 million a year.
This is compared to the average 5% currently received by other casinos around Ontario.
According to the report, "city staff strongly advise that the revised municipal hosting fee formula must reflect the unique opportunity of a potential Toronto C1 downtown casino."
Pennachetti argued that Toronto wasn't getting any "special deal" out of the elevated hosting fees, saying that any other Ontario community which was able to attract the $3 billion that private consortiums would spend to build the casino, could get the same cut.
Premier Shoots Down Special Deal Option
As soon as the idea of a "special deal" was discussed by Toronto city manager, Ontario Premier, Kathleen Wynne shot it down.
"Let me be very clear," she told reporters. "There needs to be one formula across the whole province. No special deals. The fair way forward is to make sure there is one formula."
She also expressed doubt about the sum of $150 million per year hosting fee that Toronto mayor Rob Ford believes the casino will be able to generate. "I have no ideas where the numbers come from," she said. "You'll have to talk to Mayor Ford."
Toronto Councillors Ask Questions
Ford has made no secret of his support for a new casino and urged city councillors to approve this "golden opportunity" when they meet to vote on May 7th. He is keen to move the proposal forward and has called for a special executive meeting for next Monday and Tuesday to discuss Pennachetti's report.
However, some councillors have expressed their reservations about taking a vote without a firm commitment on hosting fees in the Toronto casino report.
"There are many members of executive committee, like myself, that aren't sold on this yet without having some proof [that hosting fees will top $100 million a year]," said Councillor Peter Milczyn.
