Item - 2018.EX33.2

City Council considered Items EX33.2 and EY29.2 together.

The Executive Committee recommends that:  

1. City Council amend the Community Benefits Agreement with Ontario Gaming Greater Toronto Area Limited Partnership set out in Attachment 1 to the report (April 12, 2018) from the Interim City Manager, for the purposes of clarification, as follows:

a. Under the section Employment in Operations (p.g. 3), strike the first bullet and replace it with: "OGGLP will hire a minimum of 40% new hires (to be tracked through headcount) through local or social hiring, of which at least half must be local hiring. Youth hiring initiatives will prioritize youth who are also members of other equity-seeking groups."

b. Under the section Employment in Construction (p.g. 3), strike the first bullet and replace it with "OGGLP will use all reasonable commercial efforts to require its construction contractors to ensure that a minimum of 10% of the overall trade and craft working hours will be worked by apprentices or journeypersons from the Woodbine Local Area or equity- seeking groups, with priority for apprenticeships to be given to youth who are also members of other equity-seeking groups."

c. Under the Definitions section, add a footnote to the definition of Equity-Seeking Group that reads: "While undocumented individuals are recognized as an equity-seeking group, social hiring does not include undocumented job seekers and there is not any expectation of employers to hire people who are not legally entitled to work in Canada."

2.  City Council confirm that, subject to the execution of a Community Benefits Agreement with Ontario Gaming Greater Toronto Area Limited Partnership in accordance with the terms and conditions set out in Attachment 1 to the report (April 12, 2018) from the Interim City Manager, as amended by Recommendation 1 above, and in a form satisfactory to the City Solicitor, the 21 conditions (12 planning conditions [Item EY29.2] and 9 social conditions [Item EX33.2]) for expanded gaming set out by City Council by its approval of Item EX7.4, Expanded Gaming at Woodbine Racetrack on July 7, 2015 are met, being the conditions required by City Council when it passed a conditional resolution in support of expanded gaming at Woodbine Racetrack (555 Rexdale Boulevard) as required by Ontario Regulation 81/12.

3.  City Council authorize the Interim City Manager, in consultation with the City Solicitor, to enter into a Community Benefits Agreement with Ontario Gaming Greater Toronto Area Limited Partnership referenced in Recommendations 1 and 2 above, in accordance with the terms and conditions set out in Attachment 1 to the report (April 12, 2018) from the Interim City Manager, as amended by Recommendation 1.

4.  City Council direct that once the Community Benefits Agreement referred to in Recommendations 1, 2 and 3 above has been executed by Ontario Gaming Greater Toronto Area Limited Partnership and the City, City Council's decision on Item EX33.2, Expanded Gaming at Woodbine Racetrack - City Conditions, Item EY29.2, Final Report - 555 Rexdale Boulevard - Zoning By-law Amendment and Draft Plan of Subdivision Applications, together with its decision on item EX7.4, Expanded Gaming at Woodbine Racetrack, made at its meeting on July 7, 2015, be forwarded to the Province of Ontario and the Ontario Lottery and Gaming Corporation.

5.  City Council direct the Interim City Manager and the Interim Chief Financial Officer to report back to City Council:

a.  as part of the 2019 budget process, on the costs required to implement the Community Benefits Agreement;

b.  once future growth and activity projections are determined for the gaming facility, on the incremental operating costs to City Programs and Agencies to support expanded gaming; and

c. in 2022, once Phase 1 of the proposed development is completed and the total incremental revenues from expanded gaming are confirmed, with proposals on utilizing any unallocated incremental revenues from expanded gaming.

6.  City Council request that the Toronto Police Services Board provide estimates for incremental policing costs that may be required due to expanded gaming at Woodbine Racetrack.

7.  City Council request that the Ontario Lottery and Gaming Corporation (OLG) incorporate an assessment of Ontario Gaming Greater Toronto Area Limited Partnership's (OGGLP) past progress, soliciting the views of the City of Toronto, towards implementing the City-Ontario Gaming Greater Toronto Area Limited Partnership Community Benefits Agreement in Gaming Zone C2 as a criterion when making future decisions to renew or extend the Ontario Gaming Greater Toronto Area Limited Partnership contract in Ontario Lottery and Gaming Corporation's sole discretion pursuant to the terms of the Ontario Lottery and Gaming Corporation-Ontario Gaming Greater Toronto Area Limited Partnership Casino Operating Services Agreement.

8.  City Council request that the Province of Ontario:

a.  amend Ontario Regulation 81/12 as necessary to provide a clear requirement for municipal approval prior to any decision to substantially expand or renew gaming sites and related contracts with operators within the municipality; and

b.  continue to enhance and invest in its Responsible Gambling framework and approaches to minimizing the potential social, health, financial and other harms to Ontario residents due to gambling expansion in Ontario by directing funds to prevention, treatment, research, knowledge translation, and education (including to secondary school students).

9. City Council reaffirm its previous request to the Province of Ontario and the Ontario Lottery and Gaming Corporation of July 7, 2015 (Part 8a of Item EX7.4):

"8. City Council request the Government of Ontario and the Ontario Lottery and Gaming Corporation to amend the existing municipal "Hosting fee" formula, considering the following:

a. the hosting fee is governed by a standard province-wide Municipal Contribution Agreement (MCA) which must be reviewed to reflect a fair equity return, if Council consents to expanded gaming at Woodbine…"

10.  City Council request that Woodbine Entertainment Group work with the City of Toronto and local residents on Community Benefit Agreements as part of future development of lands at 555 Rexdale Boulevard outside of the proposed Gaming District.

The Executive Committee:

1. Requested the Interim City Manager to report directly to the April 24, 2018 City Council meeting on the possibility of the Ontario Gaming Greater Toronto Area Limited Partnership providing child care for casino employees, and any other plans for child care in close proximity to the site.

2. Referred the following Motions 1, 2 and 3 by Councillor Thompson to the Interim City Manager, with the request that she consult with the Ontario Gaming GTA Limited Partnership and report directly to Council on April 24, 2018 with an analysis of the implications (including legal and financial) of the proposals and the positive benefits for equity seeking groups implied in his motions:

"1. That the following amendment be made to the City of Toronto-Ontario Gaming Greater Toronto Area Limited Partnership Community Benefits Agreement Terms Sheet contained in Attachment 1 of the report (April 12, 2018) from the Interim City Manager:

1) Under the section Local Employment and Hiring, Employment in Construction (p.g. 3), delete the wording "use all reasonable commercial efforts to" so that it now reads: "OGGLP will require its construction contractors to ensure that minimum of 10 percent of the overall trade and craft working hours will be worked by apprentices or journeypersons from the Woodbine Local Area or equity seeking groups"."

"2. That the Toronto Community Benefits Network be included in the Employment and Labour Market Advisory Working Group and the Casino Woodbine Responsible Gaming Oversight Committee."

"3. That the Toronto and York Regional Labour Council be included in the Community Steering Committee and the Employment and Labour Market Advisor Group."

On July 7, 2015, City Council passed a conditional resolution supporting expanded gaming at Woodbine Racetrack subject to, among other things, Ontario Lottery and Gaming Corporation's (OLG) service provider (Ontario Gaming Greater Toronto Area Limited Partnership or OGGLP) meeting 21 conditions (EX7.4). The conditions include 12 planning conditions, and 9 social (or non-planning) conditions focused on community benefits (economic development, local employment, access to community space and Responsible Gambling matters).

The purpose of this report is to provide an assessment on how Ontario Gaming Greater Toronto Area Limited Partnership has met or has contractually committed to meeting the 9 social (non-planning) conditions and identifies the terms and conditions of a Community Benefits Agreement (CBA). It is recommended that the City enter into the Community Benefits Agreement as per the terms and conditions in Attachment 1.

City staff are of the opinion that the 9 social conditions (13 to 21) have been met subject to the signing of the Community Benefits Agreement. City staff are also of the opinion that the 12 planning conditions have been met (as included in Item EY29.2, Final Report - 555 Rexdale Boulevard - Zoning By-law Amendment and Draft Plan of Subdivision Applications which was adopted unanimously by Etobicoke York Community Council on April 4, 2018):

http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2018.EY29.2

It is recommended that the decision in regard to this report and the decision on Item EY29.2, together with the City Council decision on item EX7.4, Expanded Gaming at Woodbine Racetrack, made at its meeting on July 7, 2015, be forwarded to the Province of Ontario and the Ontario Lottery and Gaming Corporation once the City and Ontario Gaming Greater Toronto Area Limited Partnership have entered into the Community Benefits Agreement.

Summary Assessment of the 9 Social Conditions (Further details can be found in Attachment 5)

Condition 13: The service provider will develop an international marketing plan and outline what measures it will implement to maximize the facility's ability to attract tourists both nationally and internationally.

City staff are of the opinion that Condition 13 has been satisfied. As outlined in Attachment 1 (Community Benefits Agreement Terms Sheet), Ontario Gaming Greater Toronto Area Limited Partnership has committed to developing and implementing an International Marketing Plan (IMP) and to working with City staff on the International Marketing Plan over the course of the buildout, including updating metrics and performance indicators.

Condition 14: The service provider will develop an Employment and Labour Market Plan satisfactory to the City, which will apply to the gaming facility and related development and operations.

City staff are of the opinion that Condition 14 has been satisfied. Attachment 1 outlines Ontario Gaming Greater Toronto Area Limited Partnership's commitments to developing and implementing a 20-year Employment and Labour Market Plan (ELMP), outlines key commitments to employment targets and commitments to monitor, track and report on progress. The Employment and Labour Market Plan will be monitored by the Employment and Labour Market Advisory Working Group.

Key employment targets include:

- Use all reasonable commercial efforts to ensure a minimum of 10 percent of all construction trade and craft working hours be apprentices or journeypersons from the Woodbine Local Area or equity-seeking groups.

- A minimum of 40 percent new hires (to be tracked by headcount) through local or social hiring, in which at least half is dedicated to local hiring.

- In the first two years of operations, at least 40 percent of total employees will work full-time (at least 35 hours per week). After two years of operation, at least 50 percent of employees will work full-time.

The total number of jobs to be created is outlined in the comments section of this report, while the terms Woodbine Local Area, social hiring and equity-seeking groups are defined in Attachment 1.

Ontario Gaming Greater Toronto Area Limited Partnership also commits to working with technical schools and local employment services networks as part of the hiring process for construction professional, technical and administrative roles.

Condition 15: The service provider will establish an Employment and Labour Market Advisory Working Group to oversee the implementation and reporting of outcomes of the Employment and Labour Market Plan.

City staff are of the opinion that Condition 15 has been satisfied. As outlined in Attachment 1, Ontario Gaming Greater Toronto Area Limited Partnership has committed to convening an Employment and Labour Market Advisory Working Group and has submitted draft Terms of Reference for the Group that they will chair (Attachment 6).  Further, the Working Group will oversee the implementation and reporting of outcomes of the Employment and Labour Market Plan, including skills training and apprenticeships. The Terms of Reference will be finalized by the Working Group once it is convened.

Condition 16: The service provider will implement a Supply Chain Diversity Policy, which will include opportunities to secure agreements that support operational requirements and provide added-value to local businesses; and require the service provider to take all reasonable steps to create opportunities for local businesses to benefit from the proposed development, and encourage the hiring and purchasing of skilled service providers that resemble the diversity and multicultural makeup of Toronto.

City staff are of the opinion that Condition 16 has been satisfied. As outlined in Attachment 1, Ontario Gaming Greater Toronto Area Limited Partnership has committed to develop and implement a Supply Chain Diversity Policy and Procedures. In addition, Ontario Gaming Greater Toronto Area Limited Partnership has committed to ensuring a minimum 10 percent of annual operational procurement, excluding specialized items such as gaming devices and technology, are procured from a local or diverse supplier (including existing contracts). This target is similar to the City of Vancouver's 10 percent local procurement target in at least seven Community Benefits Agreements to date, including two gaming facilities.

Ontario Gaming Greater Toronto Area Limited Partnership commits to working collaboratively with the City and Supplier Councils (established non-profit supplier certification organizations) and will develop targeted lists of certified diverse suppliers to be included in Ontario Gaming Greater Toronto Area Limited Partnership's procurement processes. Ontario Gaming Greater Toronto Area Limited Partnership also committed to engaging in a number of supporting activities during the Supply Chain Diversity Policy development and implementation phases.

Condition 17: The City will not consent to the expansion of the gaming at Woodbine unless the Ontario Lottery and Gaming Corporation (OLG) and service provider have entered into agreements through which the service provider: (a) acknowledges that it is bound by existing collective agreements in accordance with the "sale of business" provisions of the Labour Relations Act, 1995 and (b) agrees to refrain from interfering in union related matters. 17(c) is a City Council request that Ontario Lottery and Gaming Corporation and the service provider enter into an agreement with any trade union recognizing them as the exclusive bargaining agent where they can establish 50 percent plus 1 of employees are members and have signed authorization cards.

City staff are of the opinion that this condition has been satisfied as such agreements were entered into on January 23, 2018 when Ontario Gaming Greater Toronto Area Limited Partnership assumed operations of the gaming facility. Ontario Lottery and Gaming Corporation has verified the presence of said agreements and Ontario Gaming Greater Toronto Area Limited Partnership has sent a letter confirming that they have entered into such agreements with Ontario Lottery and Gaming Corporation. The response is consistent with the City Council conditions and the provisions of the Labour Relations Act, 1995 upon which they are based. Further information on 17(c), which is a request of Ontario Gaming Greater Toronto Area Limited Partnership, not a condition of City Council's approval of expanded gaming, is provided in Attachment 5.

Condition 18: The service provider will identify commitments for the provision of access to suitable live event and/or large venue facilities, at little or no cost, for a limited number of operational hours within its facilities, for appropriate community cultural purposes.

City staff are of the opinion that Condition 18 has been satisfied. As outlined in Attachment 1, Ontario Gaming Greater Toronto Area Limited Partnership has committed to making space available at the 4,200 seat entertainment venue for a minimum of 1 large-scale event per month, or 12 per year, for little to no cost to the community. In addition, Ontario Gaming Greater Toronto Area Limited Partnership has committed to providing access to the 5,000 square foot on-site training centre as well as other spaces at 555 Rexdale Boulevard which may become available.

To provide a framework and process for community use of space, Ontario Gaming Greater Toronto Area Limited Partnership has also committed to developing and implementing a Community Access to Space Policy and Procedures that will address guidelines for registration and accessing space, fee guidelines to access spaces, weekly, monthly, and/or annual targets for each venue or space, and number and type of spaces available.

Condition 19: The service provider must maintain all existing and planned Responsible Gambling measures and work with City staff and the Toronto Medical Officer of Health to implement harm mitigation measures to address the negative impacts of problem gambling.

City staff are of the opinion that this condition has been satisfied by Ontario Gaming Greater Toronto Area Limited Partnership and Ontario Lottery and Gaming Corporation. As outlined in Attachment 1, Ontario Gaming Greater Toronto Area Limited Partnership has committed to maintaining all Responsible Gambling (RG) measures in place as required by Ontario Lottery and Gaming Corporation and the Alcohol and Gaming Commission of Ontario (AGCO), and implementing and maintaining all planned Responsible Gambling measures required by Ontario Lottery and Gaming Corporation. It is City staff's opinion that the current regulatory framework for Responsible Gambling in Ontario, in combination with the accountability mechanisms outlined under Condition 21 provides assurance that Ontario Gaming Greater Toronto Area Limited Partnership will maintain all existing and planned Responsible Gambling measures in accordance with Ontario Lottery and Gaming Corporation requirements.

Condition 20: The service provider will address the potential negative impacts of expanded gaming at Woodbine and identify community benefits it will contribute to mitigate any potential risks, including:

a. the preparation of regular reports assessing the health and social impacts of gaming operations at Woodbine;

b. providing additional social and health services to address any increase in vulnerability to Toronto residents brought about by expanded gaming at Woodbine;

c. a commitment to proactively addressing the negative impacts of problem gambling through prevention, intervention, treatment referral and harm mitigation initiatives based on internationally recognized best practices;

City staff are of the opinion that Conditions 20a, 20b and 20c have been satisfied through Condition 19, the commitments of Ontario Gaming Greater Toronto Area Limited Partnership as outlined in Attachment 1, and through the committee proposed by Ontario Lottery and Gaming Corporation under Condition 21 (see below and Attachment 7). Together, these items indicate that both Ontario Lottery and Gaming Corporation and Ontario Gaming Greater Toronto Area Limited Partnership will be continuously examining these issues in collaboration with the City and key stakeholders.

Condition 20 (continued):

d. the identification of and commitment to social procurement opportunities and strategies that are aimed at providing benefits to local businesses and residents;

e. the identification of and commitment to the principles of an Employment and Labour Market Plan to support the development and operation of the proposed expansion;

f. the identification of and commitment to the principles of a Supply Chain Diversity Policy to encourage meaningful employment opportunities; and

g. the identification and commitment to building sustainable community relationships and initiatives that benefit Toronto residents.

City staff are of the opinion that Conditions 20d, 20e, 20f and 20g have been satisfied through details outlined under Conditions 14-16 and 18-19 which demonstrate commitment to social procurement, supply chain diversity and the principles of an Employment and Labour Market Plan. Further, Condition 20g is also specifically addressed in the governance section below which includes pathways to identifying future impacts and benefits and building sustainable community relationships over the long term.

Condition 21: The service provider will develop and enter into an agreement (or multiple agreements) with the City identifying the terms and conditions of community benefits it will contribute to mitigate any potential risks of expanded gaming at Woodbine, including the establishment of an oversight committee responsible for reporting on progress, and comprising representatives from the service provider, the City of Toronto, including Public Health, and invite representatives from the Ministry of Health and Long-Term Care, the Centre for Addiction and Mental Health and relevant research and community-based stakeholders.

City staff are of the opinion that Condition 21 has been satisfied through Ontario Gaming Greater Toronto Area Limited Partnership's commitment to enter into a Community Benefits Agreement (CBA) with the City on the terms and conditions set out in Attachment 1, and through Attachment 7 which outlines Ontario Lottery and Gaming Corporation's Terms of Reference for a Responsible Gambling Oversight Committee (with members as identified by City Council in 2015).

The Community Benefits Agreement includes specific requirements and targets that secure local employment, economic development, access to community space, and Responsible Gambling commitments from Ontario Gaming Greater Toronto Area Limited Partnership for the local community and Toronto residents. It sets the stage for a 20-plus year relationship between the City and Ontario Gaming Greater Toronto Area Limited Partnership with transparent reporting and accountability to stakeholders and the broader community.