Community and Protective Services Committee
Comité des services communautaires et de protection
and Council / et au Conseil
27
August 2009 / le 27 august 2009
Submitted
by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint,
City Operations/Opérations
municipales
Contact Person/Personne ressource : Linda Anderson, Manager
By-law and Regulatory
Services/Services des règlements municipaux
(613) 580-2424, x29257,
Linda.Anderson@ottawa.ca
Que le Comité des services communautaires et de protection recommande au
Conseil que:
1.
la
demande du Rideau Carleton Raceway auprès de la Commission des alcools et des
jeux de l’Ontario pour ouvrir une nouvelle salle de bingo reçoive l’appui du
Conseil; et,
2. la décision du Conseil, le procès
verbal et le rapport en entier soient envoyés à la Commission des alcools et
des jeux de l’Ontario.
The Alcohol and Gaming Commission of Ontario (AGCO) is a quasi-judicial agency, which, among other activities, regulates gaming in the Province to ensure that it is conducted in the public interest by people with integrity and responsibly. In that regard, the AGCO has established “Criteria and Procedures for Establishing Bingo Halls”, which outline the requirements for applications to the AGCO to open a new bingo hall including submission of the application to the local municipality. The Guidelines also outline the role of the local municipality in the review of any such applications, including the requirement to make a recommendation to the AGCO with respect to the application. The AGCO considers the recommendation of the Council in its decision to permit the new bingo hall or not.
Earlier in 2009, the Rideau Carleton Raceway (RCR) applied to the
AGCO to open a new bingo hall and subsequently submitted the application to the
City of Ottawa, in accordance with the aforementioned Guidelines. In addition to the application, the AGCO generally
requests of its applicants that they submit an independent market study undertaken
to determine the impact that a new commercial bingo hall would have on the
existing bingo halls and charitable licensees.
The RCR retained an independent consultant to conduct the study, which
also meets the AGCO’s requirements. The
market study concluded generally that, although there is a potential for more
bingo halls in Ottawa to close regardless of whether the proposed new facility
is opened, the RCR bingo hall has the potential of increasing the
sustainability of the bingo industry in Ottawa. Both the application and the market study were made available to
the public earlier this year, in accordance with the AGCO’s Guidelines.
The public notification and consultation requirements outlined by the AGCO as part of its process, and by the City as part of its own policies in that regard, have been met. For the most part, the general public did not provide comment directly to the City on the proposed new bingo hall, although 3400 individuals – a significant number being Ottawa residents – signed a petition in support of the RCR’s proposal, which was displayed at the entrance to the RCR facility. The City did however receive comments from representatives of the existing bingo halls and the charity associations affiliated with those halls, which were opposed to the new bingo hall. The concerns expressed by those groups centre largely around issues that are not with the purview of the City but, rather, within that of the Province.
Based
on the foregoing and in view of the City’s role with respect to consideration
of new bingo halls, there does not appear to be sufficient rationale to reject
the application for the RCR’s proposed bingo hall.
There are no adverse legal or risk management implications associated with the recommendations.
If the opening of the proposed bingo hall is approved, revenue will be generated through the licensing of the charities holding events there.
La Commission des alcools et des jeux de
l'Ontario (CAJO) est un organisme quasi judiciaire qui, entre autres activités,
réglemente les jeux de hasard dans la province de façon à s'assurer qu'ils sont
menés dans l'intérêt public par des gens intègres, d'une manière responsable. À
cet égard, la CAJO a publié les « Critères et procédures concernant
l'établissement de salles de bingo », document qui énonce les exigences
relatives aux demandes qui lui sont adressées pour ouvrir une nouvelle salle de
bingo, notamment l'obligation de présenter la demande à la municipalité locale.
Ces lignes directrices définissent également le rôle de la municipalité locale
dans l'examen de ces demandes, y compris l'exigence de formuler une
recommandation à l'intention de la CAJO concernant la
demande. La CAJO tient compte de la recommandation du Conseil municipal
dans sa décision d'autoriser ou non la nouvelle salle de bingo.
Plus tôt en 2009, l'Hippodrome
Rideau-Carleton (HRC) a adressé une demande d'ouverture de salle de bingo à la
CAJO et, par la suite, a présenté la demande à la Ville d’Ottawa, conformément
aux lignes directrices susmentionnées. Outre la demande, la CAJO exige généralement
que les demandeurs présentent une étude de marché indépendante portant sur les
répercussions qu'une nouvelle salle commerciale de bingo aurait sur les salles de bingo existantes et sur les organismes de bienfaisance
titulaires de permis. L'HRC a fait appel à un consultant externe pour mener
cette étude, qui satisfait également aux exigences de la CAJO. L'étude de
marché, tout en admettant la fermeture éventuelle d'un certain nombre de salles
de bingo à Ottawa indépendamment de
l'ouverture de l'installation projetée, concluait généralement que la salle
de bingo de l'HRC offrait la
possibilité d'accroître la viabilité du secteur du bingo à Ottawa. La demande
et l'étude de marché ont été publiées plus tôt cette année, conformément aux
lignes directrices de la CAJO.
Les exigences d'avis et de
consultation publics établies par la CAJO dans le cadre de son processus et par
la Ville en vertu de ses propres politiques dans ce domaine ont été respectées.
Le grand public, dans une large mesure, s'est abstenu d'adresser directement à
la Ville des commentaires sur le projet de nouvelle salle de bingo, bien qu'une
pétition affichée à l'entrée de l'installation de l'HRC ait recueilli
3 400 signatures – dont beaucoup de résidents d'Ottawa – en faveur du
projet de l'HRC. Cependant, la Ville a reçu des commentaires de la part de
représentants de salles de bingo existantes et d'organismes de bienfaisance qui
leur sont associés, lesquels s'opposaient à la nouvelle salle de bingo. Les
préoccupations exprimées par ces groupes portaient en grande partie sur des
questions n'étant pas du ressort de la Ville, mais plutôt de celui de la
Province.
Eu égard à ce qui précède et au rôle
de la Ville dans l'examen des demandes de nouvelle salle de bingo, il ne semble
pas avoir suffisament de rationale pour le rejet de la demande d'ouverture de
la salle de bingo projetée par l'HRC.
La recommandation n'aura aucune
incidence défavorable sur le plan juridique ou en matière de gestion des risques.
L'ouverture de la salle de bingo
projetée, si elle est approuvée, produira des recettes grâce à la vente de
permis aux organismes de bienfaisance qui y tiendront des activités.
The Alcohol and Gaming Commission of Ontario (AGCO) was established in 1998 under the Alcohol and Gaming Regulation and Public Protection Act, 1996. It is a quasi-judicial regulatory agency, which, in addition to regulating beverage alcohol, ensures that casino gaming, charitable gaming and lotteries are conducted in the public interest, by people with integrity, and in a manner that is socially and financially responsible.
The
Registrar of AGCO regulates and registers suppliers to, and gaming employees
of, charitable gaming events (e.g. bingos), casinos, charity casinos, slot
machine facilities at racetracks and lotteries managed and conducted by the
Ontario Lottery and Gaming Corporation (OLG). The Registrar is also
responsible for the administration of the regulatory framework governing the
issuance of lottery licences to religious and charitable organizations.
In relation to bingo halls specifically, the AGCO has,
under the Gaming Control Act, 1992, established “Criteria and Procedures
for Establishing Bingo Halls”, which outline the requirements for applications
to the AGCO to open a new bingo hall.
The Guidelines require that the local municipal council review any such
applications in accordance with the provisions set out in the Guidelines and
that it make a recommendation to the AGCO with respect to the application –
generally, either to approve or not to approve, although reasonable conditions
on the license (registration) may be suggested by the council. The AGCO considers the recommendation of the
Council in its decision as to whether or not to issue the license.
By letter dated January 15, 2009, the Rideau Carleton Raceway (RCR) submitted to By-law and Regulatory Services a copy of its application (Document 1) to the Alcohol and Gaming Commission of Ontario (AGCO), made in late 2008, to open a new bingo hall at its location at 4837 Albion Road. Included in the submission was a copy of the “Market Study for Proposed Bingo Facility: Rideau Carleton Raceway” (Document 4), a copy of which has been distributed to all Members of Council and is held on file with the City Clerk. To clarify a few issues and to improve upon presentation of its initial application, the RCR submitted a revised application dated June 15, 2009 (Document 2). The revised application is not considered a new one.
Application
and Notification Requirements
Under the AGCO’s
“Criteria and Procedures for Establishing Bingo
Halls”, the proponent’s responsibilities with respect to an application to open
a new bingo hall include the submission of a proposal to the
local municipality in which the proposed bingo facility will be located. A copy of the proposal must be submitted to
the AGCO Registrar at least two weeks before it is submitted to the
municipality. The content of the
proposal must be consistent with the specifications outlined in the Guidelines,
including:
·
a covering letter outlining the request
·
evidence that the proposed location for a new bingo
hall meets local zoning requirements
·
if the applicant has a valid Certificate of
Registration as a gaming supplier, a copy of the Certificate, along with the
applicable registration fee. The RCR is already registered with the AGCO as a gaming supplier in
relation to its other gaming activities.
·
a map identifying the location of the proposed bingo
hall as well as the location of all existing registered bingo halls within a 30
km radius of the proposed site
·
a description of the proposed operation of the bingo
hall including amount of prize board (per session) indicating the fixed and
variable games and prize values; number of bingo sessions proposed; paper/book
prices; seating capacity; realistic estimate of attendance by session;
realistic estimate of spend per player by session; realistic estimate of
profits for charities; realistic estimate of hall operating costs and profits;
where the customer base will be drawn from; a list of ancillary functions
(banquet facilities, food concessions, etc).
·
a list of charities supporting the opening of a new
hall, including names, contact person, addresses and telephone numbers
·
background of the applicant including demonstrated
experience of the applicant and all key personnel in the operation of a bingo
hall, and an outline of cash and inventory reconciliation procedures for the
operation of bingo events
·
details of the proposed facility (blueprints, floor
plan, air circulation system, etc.)
·
an outline of the reasons why a new bingo should be
approved summarizing the benefits to the community
The aforementioned information is provided in the RCR’s application to
open a new bingo hall, as provided in Documents 1 (January) and 2 (June)
attached. The content of each is
essentially the same – the latter was revised somewhat for clarity, but largely for improved presentation.
In addition, the applicant must
provide suitable notification that a proposal has been submitted to the
municipality. The notification must be
in accordance with the AGCO’s Guidelines including placement of an
advertisement of minimum size dimensions in specified local publications,
notification to adjacent municipalities and bingo sector organizations, and
posting of the public notice at the site of the proposed bingo hall for thirty
(30) days. Respondents must be
given a minimum of thirty (30) days from the last day on which the
advertisement appears to comment on the proposal. Comments on the proposal have been accepted from January until
August 2009.
As an outcome of its public notification process, the RCR collected 3400 names, addresses and signatures collected on a petition, which was displayed at the entrance of its facility, in support of the bingo hall at that location. The target audience was that of the current patrons of the RCR, many of which are from the City of Ottawa. The RCR anticipates that, if the application for a new bingo hall is accepted, its bingo patrons will be drawn from its own facility.
A survey commissioned by the RCR in the fall of 2008 showed that 15%-20% of its existing patrons would attend the new bingo hall if one were to exist there. Currently, attendance at the RCR exceeds 150,000 patrons per month or approximately 1.8 million annually. This demonstrates that the introduction of bingo at the RCR could be successful without having to attract players from other bingo halls. The type of gaming proposed is expected to complement programs currently operating within the RCR rather than impacting charity bingos in Ottawa.
The RCR has met the application and notification
requirements.
Municipal
Role
Under the AGCO’s
“Criteria and Procedures for Establishing Bingo
Halls”, the municipality’s role in an application for a new bingo hall is as
follows:
·
After the applicant has met the notice requirements
outlined in the Guidelines and after the time periods elapsed, the municipal
council may:
a)
Approve the proposal.
b)
Not approve the proposal.
c)
Hold a public meeting to obtain further information
upon which to base their decision and to allow the applicant and respondents to
outline their position in a public forum.
d)
Require additional information from the applicant to
substantiate the proposal or address any concerns of the municipal council.
e)
Require that the applicant fund an independent market
study to be undertaken at the direction of and reporting to the council to
determine the impact that a new commercial bingo hall would have on the
existing bingo halls and charitable licensees. Costs of the study will be borne
by the applicant. The market study will
include, but is not limited to, the following elements:
·
population characteristics within 5 to 10 kilometres
of the proposed site
·
transportation/accessibility review, i.e. outline of
transit service availability, road accessibility, etc.
·
an outline of the primary trading area, i.e. where
will the customer base come from
·
an outline of the demonstrated demand for a new bingo
hall by charitable organizations
·
an analysis of the economic impact of the new hall on
existing bingo halls and charitable licensees
·
evidence that the public in the immediate area of the
proposed bingo facility would support the opening of a bingo hall in their
community.
·
The municipality shall inform the applicant, in
writing, of its decision with reasons regarding the proposal and forward same
to the Registrar. The council may place
reasonable conditions on its approval as long as such conditions do not
contravene provincial regulations/terms and conditions/policies.
· The municipality shall notify any person who responded in writing to the proposal of the council's decision, and inform them that, except in the case of a relocation, the Registrar may review council's decision if a request for a review is made within 14 days of the date of notification of the municipal council's decision.
Public Meetings/Consultation
Staff facilitated a public meeting on March 26, 2009. In addition, staff, in May and again in August, convened meetings with representatives of the three remaining bingo halls and affiliated charity associations. The details and results of the various meetings are outlined in the Consultation section of this report.
Further, the Community and Protective Services Committee meeting of September 3, 2009 at which this item will be considered, also constitutes a public meeting.
Additional Information –
Transportation Overview
Due to concerns related to the potential impact on traffic resulting from a new bingo hall, the RCR was requested to conduct a transportation study and voluntarily retained Delcan, a local transportation consultant, to conduct the necessary study, which is attached as Document 3. The study concluded that the proposed Bingo Hall facility at the RCR will be benign from a traffic impact perspective.
Market Study
It should be noted that the AGCO has advised that,
notwithstanding the option of the municipality to do so, its current practice
is to request of its applicants that
they submit, with their application, an independent market study undertaken to
determine the impact that a new commercial bingo hall would have on the
existing bingo halls and charitable licensees.
The RCR late last year retained an independent consultant to conduct the
study, which also meets the AGCO’s requirements. The market study was made available to the public earlier this
year, along with the application, in accordance with the AGCO’s
guidelines. The study concluded
generally that, although there is a potential for additional bingo halls in
Ottawa to close, it would not be as a result of the opening of a new bingo hall
at the RCR. In fact, the market study
indicates that the RCR bingo hall has the potential of increasing the sustainability
of the bingo industry in Ottawa.
Once Council renders its decision with respect to the application and
the appropriate notifications of the decision have been provided, the City of
Ottawa has fulfilled its role in this process.
Conclusion
Based on the foregoing, there does not appear to be sufficient
rationale, pertinent within the limits of the City’s role in the process of
considering the opening of new bingo halls, to reject the application for the
RCR’s proposed bingo hall.
There are no direct implications on the rural areas associated with the recommendation.
As part of the City’s consultation on the RCR’s
application, staff facilitated a public meeting, in accordance with the AGCO’s
Guidelines. An advertisement was placed
in each of the three local daily newspapers on March 13 and March 20 notifying
the public that:
·
the Rideau
Carleton Raceway had made an application to the Alcohol and Gaming Commission
of Ontario (AGCO) to open a new bingo hall at its location at 4837 Albion Road;
·
as part of the
application process, the City of Ottawa may hold a public meeting to allow the
applicant to present its proposal and the public to make comment; and,
·
subsequently, the
City must make a recommendation to the AGCO with respect to the application.
Interested parties were invited to attend a public meeting to receive information about and discuss the proposal, on March 26, 2009 at the Fred G. Barrett Arena on Leitrim Road. The RCR made a presentation detailing its proposal and was available to answer questions. Individuals wishing to comment on the proposed new bingo hall were asked to do so in writing by April 17, 2009. The public meeting was attended by approximately 45 participants representing the four existing bingo halls at the time – Bingoland South, Friends Bingo Hall, Merivale Bingo Hall and Overbrook Bingo Palace – as well as the charity associations affiliated with the halls. The general sentiment at the public meeting was one of concern about the impacts of a bingo hall at the RCR on the existing bingo halls. The participants were opposed to the opening of a new bingo hall at the RCR.
Following the public meeting, twenty-eight written submissions were received from administrators and charities associated with the four existing bingo halls, including a number of petitions signed by several hundred individuals involved with charity groups. Of the comments and petitions received, two, which were submitted by individuals who appeared to be bingo players, indicated support for the application. The remaining submissions, from the existing bingo hall administrators and local charities accessing existing bingo halls, indicated opposition to the RCR’s application, citing as rationale a significant negative impact on the four current halls in the city and on the fundraising ability of the charities associated with those halls. Submissions were also received from the Ontario Charitable Gaming Association, which represents charities and non-profit organizations engaged in charitable bingo in the Province, provided similar comments.
Noteworthy is that, effective April 30, 2009, Merivale Bingo Hall closed. The twenty-five charities displaced as a result of the closure of that hall have, as of the writing of this report, not been accommodated in any other hall.
Subsequently, staff convened additional meetings with representatives of the three remaining bingo halls and affiliated charity associations in May and again in August.
The opposition to the RCR’s application to open a new bingo hall centres largely around the concerns outlined below. Staff responses are included.
RCR’s
Application and Notification
Comment: The
RCR’s January application and the public notification that it undertook are
inadequate and improper. The June
application, which was not circulated to all parties in a timely fashion, is a
new one and therefore, the notification process and comment period should be
undertaken again. The application
generally does not contain sufficient information to provide for an informed decision
by Council. The RCR has not complied
with the AGCO’s process.
Staff response: The RCR’s application to open a new bingo hall
is provided in Documents 1 (January) and 2 (June) attached. The content of each is essentially the same
– the latter was revised somewhat
for clarity, but largely for improved presentation. It is not considered a new application and therefore, a new
notification process and comment period are not required. The application has essentially been in
circulation since January. Further, the AGCO recently advised that it feels that
the application has met its requirements and that the RCR has followed the
AGCO's process satisfactorily.
Comment: The market study should not have been undertaken by the applicant – it should have been conducted under the supervision of the City, with the applicant covering the cost. Further, the market study assumes the demise of the existing bingo halls and it does not provide sufficient information or analysis, in accordance with the AGCO’s guidelines.
Staff response:
The AGCO has advised that, notwithstanding the option of the
municipality to do so, its current practice is to request of its applicants that they submit, with
their application, an independent market study undertaken to determine the
impact that a new commercial bingo hall would have on the existing bingo halls
and charitable licensees. The RCR late
last year retained an independent consultant to conduct the study. The AGCO has advised that it considers that
the market study undertaken by an independent consultant has met its
requirements – there are no irregularities and it is a professional study done
by a reputable firm. Further, the
market study concludes generally that, although there is a potential for
additional bingo halls in Ottawa to close, it would not be as a result of the
opening of a new bingo hall at the RCR.
In fact, the RCR bingo hall has the potential of increasing the
sustainability of the bingo industry in Ottawa.
Revenue Sharing
Model
Comment: The RCR does
not understand the revenue sharing model (55/45 split) prescribed by the AGCO
nor is there any reference to it in the RCR’s application. The other amenities at the RCR, such as the
buffet, should form part of the revenue sharing arrangement applied at the RCR
should the opening of a bingo hall there be approved. This is an issue of fairness and equity amongst the bingo halls
in Ottawa – existing and proposed.
Staff response: The issue of the revenue sharing model is not within the purview of the City. However, it should noted that an indication of the manner in which the revenue sharing model will be applied and the amenities that will be included in the revenue sharing arrangement in the case of a proposed new bingo hall is not a requirement of the application. Although the RCR has voluntarily submitted to the AGCO a proposal in that regard, the AGCO has indicated that it will review the proposal and make a determination following receipt of the Council decision on the application.
Slot
machines
Comment: The
RCR has an unfair advantage over the existing bingo halls in that it offers
gaming through slot machines. The
existing bingo halls have expressed to the Province interest in obtaining and
operating slot machines, but are not permitted to do so under the current
regulations. There has been some
discussion – at a high level – of possibly allowing this, but the suggestion
has not come to fruition. This
is another issue of fairness and equity.
Staff response: While it is recognized that there may be a valid issue of fairness and equity in this regard, the concept of permitting slot machines in bingo halls is not within the purview of the City. The AGCO will however be notified of this concern.
Impact on the
Remaining Bingo Halls
Comment: The opening
of a new bingo hall at the RCR will result in the loss of patrons at the
existing halls and therefore, in a loss of revenues to the charities running
bingos at those halls, which will negatively impact the community. Ultimately, the existing bingo halls will be
forced to close.
Staff response: The RCR in its application, and the market study conducted in relation to the application, indicate that bingo patrons will be drawn from the RCR’s existing clientele. Further, the market study indicates that it is not expected that the proposed new bingo hall at RCR will have a significant negative impact on the remaining existing halls because the new facility would be the only bingo hall in the southern suburban area of the City, whereas the existing halls are located within the greenbelt. Additionally, it is not expected that the proposed site will directly compete with the primary trade areas of existing bingo halls, which depend on easy accessibility or proximity to residents within their respective communities for their core repeat players. Public transit services are not available to the RCR site, which is accessible predominantly by car. Walk-in traffic is also very limited because of the RCR’s rural, peripheral location.
In addition, an advertisement giving notice of the time, date and location of the Community and Protective Services Committee meeting at which the proposal would be considered appeared in the August 21st and 28th edition of the Citizen, the Sun and Le Droit. As well, groups and individuals who attended the public meeting and/or made written submissions on the item were notified of the meeting.
There are no adverse legal or risk management implications associated with the recommendations.
Should the AGCO approve the opening of the proposed bingo hall, any revenues generated by the licensing of the charities holding events at the new hall will be credited to the non-departmental Lottery revenue account, 119967. The impact of the revenue will only be known once the proposed bingo hall is operational and hence the budget, if required, will be revised accordingly.
The recommendation has no direct impact on the City Strategic Directions.
Document 1: Bingo Application for Rideau Carleton Entertainment Centre (January 15, 2009)
Document 2: Rideau Carleton Entertainment Centre – Application for a new Bingo Hall – June 15, 2009 – Revised
Document 3: Proposed Bingo Hall, Rideau Carleton Entertainment Centre – Transportation Overview
Document 4: “Market
Study for Proposed Bingo Facility: Rideau Carleton Raceway” (previously
distributed to all Members of Council and held on file with the City Clerk)
By-law and Regulatory Services Branch to implement Council direction
emanating from this report.