Ottawa Senators Kanata Casino Bid Blocked
Eugene Melnyk, the owner of the Ottawa Senators, is considering suing the City of Ottawa after the decision was made that the Rideau-Carleton Raceway would be given the support to be the only casino site.
Ottawa Senators Casino Bid
Ten years ago, Melnyk rescued the Ottawa Senators from going bankrupt. Melnyk, a wealthy businessman, had originally made his money in pharmaceuticals. The hockey team, despite being bailed out ten years ago, is not making money, and Melnyk is eager to build a casino right next door, to bring in additional revenue.
Melnyk has made it clear that he is not having "financial issues," however, the team needs an additional source of income. He saw a casino at Kanata as a possible solution to diversify and solve the team's financial problems.
Now that the city has shut down the Ottawa Senators casino bid, it should be noted that Melnyk's complaints regarding the issue are not simply about the result of the city council vote, but on the process by which the city made the decision to choose the Rideau Carleton Raceway over his Kanata casino proposal.
City Backs Raceway Over Kanata
The Ottawa city councillors, along with Mayor Jim Watson, made the decision to vote for the Rideau-Carleton Raceway to be the only possible casino site. The mayor was certainly pushing to have a casino at the Rideau-Carleton Raceway, along with a number of other city councillors.
The reason given for this decision is largely based on the preservation of a large number of jobs at the Raceway. The Raceway currently employs hundreds in full-time jobs, and locating a casino at the Raceway will ensure that those jobs are not lost.
Alex Lawryk, a spokesman from the Raceway, explained that if the Raceway was not given permission to allow a casino, that it was likely that the facility would not be able to stay in business because the revenue obtained from horse racing does not sustain the Raceway. Lawryk had said: "A vote today is a clear vote whether the Rideau stays open or doesn't stay open."
Melnyk Out of Options Over Casino
According to Melnyk, he now has no other options available to him. He had previously asked the municipality to allow him to build a soccer field in Kanata, next door to the arena. The city chose to award the soccer field permit to Lansdowne Park instead.
Melnyk has now tried for the casino bid, and says that he has no more ideas or options to bring in additional revenue to fund the Ottawa Senators. He has told the council that he will no longer continue to put money into the team.
Regarding the decision, Melnyk believes that the city voted for the Raceway in order to prop up the Raceway's business. He sees this as the city subsidising a business, and notes that municipalities are not legally allowed to do this.
