Item - 2012.EX24.1
Tracking Status
- This item was considered by Executive Committee on November 5, 2012 and was adopted with amendments.
EX24.1 - Considering a New Casino in Toronto
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Decision
The Executive Committee:
1. Authorized the City Manager to conduct public consultation to seek input from Torontonians on the matter of establishing a casino in Toronto, using the information contained in the report (October 22, 2012) from the City Manager, and Attachment 1 (Report dated October 26, 2012) from Ernst & Young, titled, "Potential Commercial Casino in Toronto", and report to the Executive Committee in February/March 2013 on the results of the consultation, and any further analysis conducted.
2. Requested the City Manager to give consideration, in the requested report due in February/March 2013 to:
a. the possibility of a temporary casino in Toronto.
b. the establishment of a signed "social contract" between the City and the Ontario Lottery and Gaming Corporation.
3. Requested the City Manager to include in the requested report due in February/March 2013, recommendations which address:
a. the recommended location, and the size and type of facility required for that location;
b. alternate locations, and the size and type of facility required for the alternate locations; and
c. revenue for the recommended and alternate locations, including revenue from the Ontario Lottery and Gaming Corporation (OLG), from land sales and/or leases, from various types of agreements and/or offers from potential operators.
4. Requested the City Manager:
a. in conjunction with the Medical Officer of Health and the Centre for Addiction and Mental Health (CAMH), to consult with the Ontario Lottery and Gaming Corporation (OLG) to ensure that the economic benefits are weighed against potential social costs with a view to increasing the funding formula to enhance educational and addition support systems, to be incorporated into the requested report in February/March 2013.
b. to request the Ontario Lottery and Gaming Corporation (OLG) to release all background studies and employment data, as well as revenue projections and customer surveys to the City Manager for verification.
c. to include one public consultation meeting in each Community Council area and to provide the City Manager's toolkit for public consultation in individual wards at the request of the Ward Councillor.
d. to confirm the proposed hosting fees with Ontario Lottery and Gaming Corporation (OLG).
Origin
Summary
OLG Modernization Plan
At the request of the Ontario Ministry of Finance, the Ontario Lottery and Gaming Corporation (OLG) initiated a process in December 2010 to identify ways to expand and modernize gaming across the province. Through its analysis, the OLG identified 29 zones in which the Crown Corporation intends to offer a gaming venue. Provincially sanctioned gaming venues (either slots-at-racetracks or casinos) currently operate in 24 of the 29 gaming zones, including Woodbine Racetrack in Toronto.
Two of the 29 gaming zones, identified as C1 and C2 in OLG's Modernizing Lottery and Gaming Report, include parts of Toronto. The C1 zone (see map in Attachment 2) is split into three distinct areas around the GTA: the central Toronto waterfront, a western section including parts of south-western Toronto and south-eastern Mississauga, and an area along Highway 407 including parts of Markham and Richmond Hill. The C2 zone (see map in Attachment 2) includes the Woodbine Racetrack and stretches north along Highway 427 covering parts of Mississauga, Brampton and Vaughan.
Purpose of Report
On May 14, 2012, the Executive Committee requested the City Manager to consult with the OLG and any necessary provincial officials on their ongoing process for the selection of future casino locations in the Greater Toronto Area, and report back to Executive Committee with analysis on hosting a new casino in Toronto. The purpose of this report is to present Executive Committee with a summary of the provincial government process to license new gaming venues; the municipal planning process; the pros and cons of various gaming and development options including anticipated financial, economic and social impacts; and relevant background information. The report also provides the basis for informed public discussion and consultation.
Economic Impacts
The economic impacts of a casino depend on its location and the form that it takes, including amenities. It is difficult to assess the implications of a casino in Toronto without a specific proposal. However, the City has engaged an external consultant to examine different scenarios. The table opposite estimates the economic impacts of an illustrative integrated entertainment complex and a standalone casino, both within the central Toronto waterfront (C1 zone) and at Woodbine (C2 zone). There will be a gaming venue in both zones but the economic impacts will differ, as described below.
C1 Zone
The analysis indicates that an integrated entertainment complex located within the Toronto portion of the C1 Zone would generate between $1.9 billion and $2.4 billion in construction expenditures and 6,800 to 8,500 Full-Time Equivalent (FTE) construction related jobs over a three-year period.
Based on an estimate that 36.5 percent of the total gaming and non-gaming revenue generated by this type of development through ongoing operations is net new spending in Toronto, an integrated entertainment complex in the C1 zone would generate net annual GDP of about $640 million and result in between 5,850 and 7,300 net new jobs. Certain elements added to a casino, such as new convention space, could benefit local businesses and the city more broadly. It is within City Council's discretion to specify the amenities or limitations that should be attached to any new casino in Toronto.
A standalone casino within the C1 zone, without significant hotel, retail and entertainment amenities attached would generate between $0.8 and $1.1 billion in construction expenditures, and between 2,900 and 3,800 construction and related jobs over a three-year period.
Ongoing operations at a standalone casino, based on an estimate that 30 percent of total revenue is net new spending in Toronto, would generate net annual GDP of $315 million and between 2,700 and 3,600 net new jobs. Without associated amenities, casino patrons could seek hotels and other services in the surrounding area.
C2 Zone
An integrated entertainment complex in the Toronto portion of the C2 zone would generate between $1 billion and $1.3 billion in construction expenditures and 3,600 to 4,400 FTE construction related jobs over a three-year period.
Ongoing operations at an integrated complex, again based on an estimate that 36.5 percent of total revenue is net new spending in Toronto, would generate net annual GDP of $495 million and between 4,400 and 5,100 net new jobs.
A standalone casino at Woodbine is not expected to require significant additional construction given the existing facility, but would generate net annual GDP of $270 million and between 2,100 and 2,700 net new jobs.
Estimated Economic And Fiscal Impacts
Zone | C1 | C1 | C2 | C2 | |
Development | Integrated Entertainment Complex | Standalone Casino | Integrated Entertainment Complex | Standalone Casino | |
Description | Gaming Floor | 300,000 ft² | 300,000 ft² | 300,000 ft² | 150,000 ft² |
Slots | 4,500 | 3,500 | 3,500 | 3,000 | |
Tables | 250 | 150 | 150 | 100 | |
Hotel | 800 rooms | N/A | 800 rooms | N/A | |
Meeting & Exhibition Space | 300, 000 ft² | N/A | 300, 000 ft² | N/A | |
Other Amenities | 450, 000 ft² | 100, 000 ft² | 450, 000 ft² | 100, 000 ft² | |
Parking | 3,600 spaces | 3,600 spaces | 3,600 spaces | 3,600 spaces | |
Total Building & Parking | 3,800,000 ft² | 2,300,000 ft² | 3,800,000 ft² | 400,000 ft² | |
Construction
| Jobs | 6,800 – 8,500 FTEs | 2,900 – 3,800 FTEs | 3,600 - 4,400 FTEs | No Change |
Annual Income | $60,000 | $60,000 | $60,000 | No Change | |
Value | $1.9 billion – $2.4 billion | $0.8 billion – $1.1 billion | $1.0 billion – $1.3 billion | No Change | |
Ongoing Operations (Gross) | Gaming Revenue | $1,400 million | $1,020 million | $1,000 million | $790 million |
Non-Gaming Revenue | $350 million | $80 million | $250 million | $63 million | |
Total Revenue | $1,750 million | $1,100 million | $1,250 million | $853 million | |
Jobs | 16,000 – 20,000 FTEs | 9,000 – 12,000 FTEs | 12,000 – 14,000 FTEs | 7,000 – 9,000 FTEs | |
Annual Income | $45,000 | $45,000 | $45,000 | $45,000 | |
GDP | $1.75 billion | $1.05 billion | $1.35 billion | $0.90 billion | |
Ongoing Operations (Net) | Jobs | 5,850 – 7,300 FTEs | 2,700 –3,600 FTEs | 4,400 – 5,100 FTEs | 2,100 – 2,700 FTEs |
GDP | $640 million | $315 million | $495 million | $270 million | |
City Revenues | Hosting Fees | $106 million - $168 million | $66 million - $120 million | $70 million - $120 million | $32 million - $95 million |
Property Taxes | $27 million | $10 million | $12 million | No Change | |
City Land Sale/Lease | $0 - $250 million | $0 - $200 million | $0 | $0 | |
Hosting Fees, Property Tax Revenue, and Potential Proceeds from City –owned Lands
The consultant has also examined several scenarios to estimate the hosting fees that the City could seek from OLG if it agrees to host a casino. The analysis indicates that the City could receive hosting fees of $106 million to $168 million for an integrated entertainment complex in the C1 zone, and $70 million to $120 million at Woodbine. An integrated entertainment complex could also generate $27 million per year in additional property taxes.
A standalone casino would generate somewhat less revenue of $66 million to $120 million in C1 hosting fees, $32 million to $95 million in C2, and up to $10 million in new property taxes, depending on the site.
The City could also realize additional land sale or lease revenue if the casino is situated on City-owned lands. The consultant estimates the revenue potential to be between $35 million and $250 million, depending on location.
Health and Social Impacts
The Medical Officer of Health (MOH) has prepared a technical report on the public health impacts of gambling and of expanded access to gaming venues. The key findings are summarized herein. The MOH's report concludes that increasing access to gambling through any means (including a casino) is associated with an increase in the prevalence of problem gambling which presently affects 0.2% of the population. Consequently, a casino located anywhere in the GTA will likely increase health risks for Toronto residents and nearby communities.
The OLG contributes approximately $40 million annually – 2 percent of its annual slot revenues – to the provincial government's programs to fund the treatment, research, prevention and public awareness of problem gambling. The corporation additionally spent $12.9 million in 2011/12 on internal responsible gambling initiatives including staff training and self-exclusion programs. OLG works with other provincial agencies including CAMH to develop staff training, and the Ontario Problem Gambling Research Centre to conduct research.
Planning Review
As with any major development, a casino/entertainment complex would have social and neighbourhood impacts that would have to be addressed, including problem gambling, increased traffic and increased competition for entertainment expenditures. The Provincial requirement for municipal consent provides an opportunity for City Council to shape the development before proposals have been prepared by setting out conditions to reduce or mitigate negative impacts and improve the likelihood of a positive contribution to the surrounding community and the City as a whole. The proponent of any proposed development would subsequently also be subject to the City's planning and development review and approvals processes.
Strategic Considerations
A key issue for Council, as well as residents and businesses, to consider is that the OLG Modernizing Lottery and Gaming initiative identifies two zones (C1 and C2) within the GTA and both zones will have a casino. The City must weigh the importance of being in a position to manage the various impacts noted in this report.
If a casino is located in the C1 zone but outside Toronto, as is possible through the OLG process, the City would have less ability to shape the development proposal and would not participate in any revenue sharing. In addition, a casino located outside Toronto (i.e. in Mississauga, Markham or Richmond Hill) would divert $150 million to $224 million of gaming revenue away from Woodbine. This would impact local jobs and reduce revenue to the City. Toronto residents and businesses would however still be subject to broader impacts associated with problem gambling, increased traffic and competition for discretionary entertainment expenditures given that many Toronto residents would travel to a casino in a neighbouring municipality.
Conclusion
Together with the attached Ernst & Young Consultant Report, and the technical report by the Medical Officer of Health that will be considered at the November 19th meeting of the Board of Health, this report provides the basis to engage the public in a discussion about what elements a gaming venue would need to have, or to exclude, to provide an overall gain for the city. Public consultation will be an important part of the decision making process. This report recommends that the Executive Committee authorize the City Manager to conduct public consultation to seek input from Torontonians on the matter of establishing a casino in Toronto.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-51514.pdf
Attachment 1 - Ernst and Young Consultant Report Potential Commercial Casino in Toronto
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-51515.pdf
Attachment 2 - OLG Modernizing Lottery and Gaming Report, Map of Zones C1 and C2
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-51516.pdf
Attachment 3 - Results of 1997 Municipal Election Referendum Questions
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-51517.pdf
(November 5, 2012) Presentation from the City Manager and Ernst & Young on Considering a New Casino in Toronto
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-51746.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32505.pdf
(May 17, 2012) E-mail from Wilfredo Mendez (EX.Main.EX24.1.2)
(May 18, 2012) E-mail from Stephane de Auer (EX.Main.EX24.1.3)
(May 18, 2012) E-mail from Sylvia McLelland (EX.Main.EX24.1.4)
(May 18, 2012) E-mail from Gary Patton (EX.Main.EX24.1.5)
(May 18, 2012) E-mail from Andy Henderson (EX.Main.EX24.1.6)
(May 19, 2012) E-mail from Tony Li (EX.Main.EX24.1.7)
(May 19, 2012) E-mail from Donna-Marie Smiley (EX.Main.EX24.1.8)
(May 19, 2012) E-mail from Carol Ciarallo (EX.Main.EX24.1.9)
(May 26, 2012) E-mail from Brigitte Straub (EX.Main.EX24.1.10)
(May 28, 2012) E-mail from Camille Shaw (EX.Main.EX24.1.11)
(July 9, 2012) E-mail from Mary Ann Lundy (EX.Main.EX24.1.12)
(October 2, 2012) E-mail from J. Denis Powell (EX.Main.EX24.1.13)
(October 15, 2012) E-mail from Murray Morello (EX.Main.EX24.1.14)
(October 22, 2012) E-mail from J. Cameron Nelson (EX.Main.EX24.1.15)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32519.pdf
(October 24, 2012) E-mail from Jack Lee (EX.Main.EX24.1.16)
(October 30, 2012) Letter from Woodbine Entertainment, forwarding 662 letters and a DVD, on file with the City Clerk (EX.Supp.EX24.1.17)
(October 31, 2012) E-mail from Vincent Peets (EX.Supp.EX24.1.18)
(October 31, 2012) E-mail from Robert Woodcock (EX.Supp.EX24.1.19)
(October 31, 2012) E-mail from Ed VandenDool (EX.Supp.EX24.1.20)
(October 31, 2012) E-mail from Watson Chan (EX.Supp.EX24.1.21)
(October 31, 2012) E-mail from Patricia Anne Waugh (EX.Supp.EX24.1.22)
(November 1, 2012) E-mail from Marc Petruccelli (EX.Supp.EX24.1.23)
(November 1, 2012) E-mail from Eugene Tse (EX.Supp.EX24.1.24)
(November 1, 2012) E-mail from Johan Lee (EX.Supp.EX24.1.25)
(November 2, 2012) E-mail from Wei Rong Zheng (EX.Supp.Ex24.1.26)
(November 5, 2012) E-mail from Dr. Nigel Turner and Jean-Francois Crepault, Centre for Addiction and Mental Health (EX.Supp.EX24.1.27)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32695.pdf
(November 2, 2012) E-mail from Brian Ashton, President, Canadian National Exhibition Association (CNEA) (EX.Supp.EX24.1.28)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32698.pdf
(November 2, 2012) E-mail from Larry Webb, Corktown Residents & Business Association (EX.Supp.EX24.1.29)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32737.pdf
(November 5, 2012) Letter from Robert J. Orr (EX.New.EX24.1.30)
(November 5, 2012) Letter from Jerry Sprackman (EX.New.EX24.1.31)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32787.pdf
(November 5, 2012) Submission from Alexander Greer (EX.New.EX24.1.32)
(November 5, 2012) Petition from Jane Holmes, VP, Corporate Affairs, Woodbine Entertainment Group submitted with 10,237 names (EX.New.Ex24.1.33)
(November 5, 2012) Submission from Robert I. Simpson (EX.New.EX24.1.34)
(November 5, 2012) Letter from Maureen Lynett - Social Impacts of Casinos (EX.New.EX24.1.35)
(November 5, 2012) Letter from Maureen Lynett - No Casino Toronto (EX.New.EX24.1.36)
(November 5, 2012) Letter from Maureen Lynett (EX.New.EX24.1.37)
(November 5, 2012) Letter from Woodbine Entertainment Group titled "A Long-Standing Tradition of Driving Business Benefits Beyond the Track" - September 2012 (EX.New.EX24.1.38)
(November 5, 2012) Submission from Jason Applebaum (EX.New.EX24.1.39)
(November 5, 2012) Submission from Patrick Au, Executive Director, Chinese Family Services of Ontario (EX.New.EX24.1.40)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32872.pdf
(October 31, 2012) E-mail from J. Richard Blickstead, Wellesley Institute, Advancing Urban Health (EX.New.EX24.1.41)
https://www.toronto.ca/legdocs/mmis/2012/ex/comm/communicationfile-32874.pdf
(November 5, 2012) Submission from Frederick Harrison (EX.New.EX24.1.42)
(October 23, 2012) Letter from John Campbell, President and Chief Executive Officer, WaterfronToronto, submitted by Councillor Fletcher (EX.New.EX24.1.43)
Speakers
Dr. Nigel Turner, Centre for Addiction & Mental Health (CAMH)
Jane Holmes, VP, Corporate Affairs, Woodbine Entertainment Group
Nick Eaves, President & CEO, Woodbine Entertainment Group
Rod Phillips, President and CEO, Ontario Lottery and Gaming Corporation (OLG)
Paul Pellizzari, Director of Responsible Gambling and Social Responsibility, Ontario Lottery and Gaming Corporation (OLG)
Dan Loiselle, Announcer, Woodbine Entertainment Group
Wendy Muir, Woodbine Entertainment Group
M Currie, Woodbine Entertainment Group
Josie Carroll, Trainer, Woodbine Entertainment Group
Glenn Sikura, President, Canadian Thoroughbred Horse Society, Ontario Division
Cameron Nelson, President, Service Employees International Union (SEIU), Local (BGPWU)
Randy Otto, CEO, Pattison Outdoor Advertising
Rob Simpson
Ken Mayhew, President and CEO, William Osler Health System Foundation
Stephen Wong, Champions Teletheatre Operator
Jill Cunningham, Ernestine Women's Shelter
Shawn Kennedy, Racetrack Chaplaincy
Jason Applebaum, Student
Patrick Au, Chinese Family Services of Ontario
Fred Luk, Fred's Not Here/Red Tomato Restaurants
Julie Beddoes, West Don Lands Committee
Peggy Calvert, No Casino Toronto
Alexander Greer
Janice Solomon, Toronto Entertainment District BIA
Jerry Sprackman, Landlord of 11- 55 Polson Street
Lis Pimentel, President, UNITE HERE Local 75
Mike Yorke, Carpenters Union
Doug Carroll
Brett Kennedy
Charles Finlay, Volunteer Board Member, Social Planning Toronto
Sam Papaleo
Miguel Avila, Citizens Advisory
Frederick Harrison
Brad James, United Steelworkers
Edward Homonylo
Councillor Raymond Cho
Councillor Gary Crawford
Councillor Janet Davis
Councillor Sarah Doucette
Councillor Paula Fletcher
Councillor Mary Fragedakis
Councillor Mike Layton
Councillor Joe Mihevc
Councillor Frances Nunziata
Councillor Gord Perks
Councillor Adam Vaughan
Motions
1. That questions of staff occur after public presentations are concluded.
2. That questions from Members of Council (including Executive Committee Members) to staff be limited to 5 minutes in total, with only one round of questions per Councillor.
3. That public presentations be limited to 3 minutes.
4. That questions of deputants by Members of Council (including Executive Committee Members) be limited to 2 minutes, with only one round of questions per Councillor.
5. That speaking times for all Members of Council (including Executive Committee Members) be limited to one round of 5 minutes of speaking time per Councillor.
Vote (Set Committee Rule) Nov-05-2012
| Result: Carried | Majority Required - EX24.1 - Holyday - Motion 1 |
|---|---|
| Total members that voted Yes: 8 | Members that voted Yes are Michelle Berardinetti, Mike Del Grande, Rob Ford (Chair), Doug Holyday, Norman Kelly, Peter Milczyn, Denzil Minnan-Wong, David Shiner |
| Total members that voted No: 4 | Members that voted No are Paul Ainslie, Giorgio Mammoliti, Cesar Palacio, Michael Thompson |
| Total members that were Absent: 1 | Members that were absent are Jaye Robinson |
That Wendy Muir, Woodbine Entertainment Group and Melanie Currie, MicroSkills be permitted to make a joint presentation lasting a maximum of 6 minutes.
Vote (Set Committee Rule) Nov-05-2012
| Result: Carried | Majority Required - EX24.1 - Mayor Ford - Motion 2 |
|---|---|
| Total members that voted Yes: 10 | Members that voted Yes are Paul Ainslie, Mike Del Grande, Rob Ford (Chair), Doug Holyday, Giorgio Mammoliti, Peter Milczyn, Cesar Palacio, Jaye Robinson, David Shiner, Michael Thompson |
| Total members that voted No: 1 | Members that voted No are Norman Kelly |
| Total members that were Absent: 2 | Members that were absent are Michelle Berardinetti, Denzil Minnan-Wong |
That the City Manager give consideration, in the requested report due in February/March 2013, to the establishment of a signed "social contract" between the City and the Ontario Lottery and Gaming Corporation (OLG).
That the City Manager give consideration, in the requested report due in February/March 2013, to the possibility of a temporary casino in Toronto.
That the City Manager, in conjunction with the Medical Officer of Health and the Canadian Association for Mental Health (CAMH), consult with the Ontario Lottery and Gaming Corporation (OLG) to ensure that the economic benefits are weighed against potential social costs with a view to increasing the funding formula to enhance educational and addition support systems, to be incorporated into the requested report in February/March 2013.
That the City Manager include in the requested report due in February/March 2013, recommendations which address:
1. the recommended location, and the size and type of facility required for that location;
2. alternate locations, and the size and type of facility required for the alternate locations; and
3. revenue for the recommended and alternate locations, including revenue from the Ontario Lottery and Gaming Corporation (OLG), from land sales and/or leases, from various types of agreements and/or offers from potential operators.
That the City Manager be directed to request the Ontario Lottery and Gaming Corporation (OLG) to release all background studies and employment data, as well as revenue projections and customer surveys to the City Manager for verification.
Vote (Amend Item (Additional)) Nov-05-2012
| Result: Carried | Majority Required - EX24.1 - Thompson - Motion 7 |
|---|---|
| Total members that voted Yes: 8 | Members that voted Yes are Paul Ainslie, Michelle Berardinetti, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Cesar Palacio, David Shiner, Michael Thompson |
| Total members that voted No: 4 | Members that voted No are Mike Del Grande, Rob Ford (Chair), Doug Holyday, Norman Kelly |
| Total members that were Absent: 1 | Members that were absent are Jaye Robinson |
That the City Manager be requested to include one public consultation meeting in each Community Council area and to provide the City Manager's toolkit for public consultation in individual wards at the request of the Ward Councillor.
That the City Manager be requested to confirm the proposed hosting fees with Ontario Lottery and Gaming Corporation (OLG).
Vote (Adopt Item as Amended) Nov-05-2012
| Result: Carried | Majority Required - EX24.1 - Milczyn - Motion 10 |
|---|---|
| Total members that voted Yes: 12 | Members that voted Yes are Paul Ainslie, Michelle Berardinetti, Mike Del Grande, Rob Ford (Chair), Doug Holyday, Norman Kelly, Giorgio Mammoliti, Peter Milczyn, Denzil Minnan-Wong, Cesar Palacio, David Shiner, Michael Thompson |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 1 | Members that were absent are Jaye Robinson |