view counter
 
view counter
 
 

Baymount Rejects OLG Offer; Plans To Seek Legal Recourse

Published: July 24, 2012 10:55 am ET

Last Comment: July 25, 2012 10:19 am ET | 7 Comment(s) | Jump to Comments

Baymount Incorporated, the company that had planned to build a new racetrack in Belleville, Ontario, has announced that it has rejected an offer by the Ontario Lottery and Gaming Corporation and is considering litigation.

Baymount had previously announced on May 4, 2012 that its wholly-owned subsidiary, Belleville Racetrack Development Corporation ('BRDC'), had received a formal notice of termination of its Site Holder Agreement (originally executed on October 23, 2006) with the Ontario Lottery and Gaming Corporation.

The Government of Ontario and the OLG announced earlier this year a significant change to the provincial gaming policy with the elimination of the 'Slots-at-Racetracks' program. This change is part of a larger modernization plan for lottery and gaming in the province of Ontario. This modernization also includes a planned Casino for the Quinte West/Belleville area, which would effectively replace the planned Racetrack and Slots facility that was being developed by BRDC.

In the termination letter received by BRDC, the OLG suggested the parties meet to discuss the relevant financial considerations pursuant to the Site Holder Agreement. In the meantime, the Company has prepared an outline of the costs incurred, excluding land costs, and has submitted this to the OLG in advance of a meeting for discussion purposes. OLG formally responded by letter to the Company on Friday, July 20 with a proposal that was far below the Company's costs incurred on this project. The Site Holder Agreement calls for mediation as the first step to a resolution of any disputes. The Company plans to pursue mediation while also evaluating potential litigation against OLG and others.

The OLG's proposal that the Company not receive adequate compensation or significant recouping of expenses is unacceptable, and the Company will take all necessary steps to resolve this situation in the best interests of its Stakeholders.

In 2004, BRDC entered into an agreement with the Belleville Agricultural Society to build a facility to relocate the Quinte Exhibition and Raceway ('QER') in Belleville, Ontario. QER was one of the 18 racetrack licenses in Ontario eligible to participate in Ontario's 'Slots-at-Racetracks' program. With the cancellation of the 'Slots-at-Racetracks' program and the termination of BRDC's Site Holder Agreement with OLG, the Company will need to fully reevaluate its current business plans and will pursue all available legal recourse against the OLG and others to protect the interest of its Stakeholders.

(Baymount Inc.)

July 25, 2012 - 10:19 amFinally, a good move by

Finally, a good move by Baymount after waiting sooo long for Belleville track. Good luck with litigation and keep it going. Hopefully we can get OHRIA and others to join you.

July 24, 2012 - 4:54 pmRacing's future at the moment

Ian Howard SAID...

Racing's future at the moment is unclear but the industry is hardly powerless.
The most effective bargaining chip has yet to be played. In the near future if it has not already happened the government will realize that they face the loss of revenue from the slot facilities at all racetracks who must tell them they have no interest in negotiating a lease agreement which excludes them from revenue from slots in their own buildings. If all the racetracks can ask the OLG to vacate the premises when the leases expire the government faces the loss of over a billion in revenue and the loss of roughly 8,000 OLG jobs in the short term. Further the OLG will then be forced to scramble to replace these facilities to the tune of hundreds of millions of dollars. Racing must then make the difficult but necessary choice to announce not to race after the leases with the OLG expires. This will then place another 40,000 to 50,000 people out of work. The NDP and PCs have yet to really attack the government on their decision to end SARP but this will give them a disaster in September that they can constantly question the government's competence on. Also it will be an issue that will come to dominate the Kitchener by-election.
If the OMAFRA panel does not point the government in a direction which keeps racing significantly involved in gaming revenues it will be then time to take the powder which has been kept dry up until now and blow this issue up until it not only receives attention but comes to dominate the news cycle for an extended period of time.

July 24, 2012 - 2:54 pmMaybe OHRIA, OHHA and COSA

Paul Gangle SAID...

Maybe OHRIA, OHHA and COSA should jump on the band wagon with their own class action lawsuit. It appears that this may be the only way to gain the attention of the Liberals and this corrupt gov't. The Ontario Medical Association did just that and both parties are now talking. I wonder how a judge would rule considering that so many people would be put out of work as a result of the gov't's actions.... not to mention the loss of investments. Let's tell this gov't and the Liberals that the party is over and we mean business.

July 24, 2012 - 12:23 pmThis is the perfect starting

This is the perfect starting place for a lawsuit against the OLG and "others". Baymount would appear to have a legitimate legal suit against our friends at the OLG and their "boss", the Ontario Liberals. Will be interesting to watch what happens.

July 24, 2012 - 12:19 pm"bad faith" ...That term

gord young SAID...

"bad faith" ...That term does not exist within Government language rules or emulations. The current reigning prov government is morally bankrupt.

July 24, 2012 - 11:18 amThe modern version of the

The modern version of the Hatfields and the McCoy's. Very hard to decide who to cheer for !!!!

July 24, 2012 - 11:04 amNow you're talking. Good for

James Feeley SAID...

Now you're talking. Good for Baymount. OLG is negotiating in "bad faith". A blind man can see the opportunities for litigation. That and the CAW demands for cost benefit analysis..and let the games begin!Jim


view counter
 
 
 

© 2021 Standardbred Canada. All rights reserved. Use of this site signifies your agreement and compliance with the legal disclaimer and privacy policy.

Firefox 3 Best with IE 7 Built with Drupal