Officials with the Ontario Lottery and Gaming Corp. have commented on Baymount Incorporated's announcement that it has rejected an OLG offer and is considering litigation.
The situation is in regard to the fallout from the termination of Baymount's Site Holder Agreement for the New Quinte Exhibition and Raceway.
In a termination letter received by Baymount's wholly-owned subsidiary, Belleville Racetrack Development Corporation, the OLG suggested the parties meet to discuss the relevant financial considerations pursuant to the Site Holder Agreement. In the meantime, Baymount prepared an outline of the costs incurred, excluding land costs, and submitted it to the OLG in advance of a meeting for discussion purposes. OLG formally responded by letter to Baymount on Friday, July 20 with a proposal that was far below Baymount's costs incurred on its expanded gaming project. The Site Holder Agreement calls for mediation as the first step to a resolution of any disputes. Baymount plans to pursue mediation while also evaluating potential litigation against OLG and others.
Baymount stated that the OLG's proposal did not offer adequate compensation or significant recouping of expenses and that it was unacceptable. Baymount announced it will take all necessary steps to resolve the situation in the best interests of its stakeholders.
An article by The Belleville Intelligencer has quoted OLG Spokesman Tony Bitonti as saying, “Baymount or BDRC has not triggered any legal proceedings as of yet" and "We just saw the news release. We found out that they turned it (the offer) down and then went public with it.”
Bitonti went on to state, “We (the OLG) complied with our obligations under the site holder agreement" and that "If they (Baymount) disagree, there are mechanisms to deal with that.”
(With files from The Belleville Intelligencer)