paragon gaming letter to vancouver city council - march 14, 2011

6650 Via Austi Pkwy Suite 150 Las Vegas, NV 89119 (702) 631-5161 Phone (702) 631-9820 Fax

GAMING • DEVELOPMENT • MANAGEMENT

March 14, 2011 Hon. Mayor Gregor Robertson and Council Vancouver City Hall 453 West 12th Avenue Vancouver, BC V5Y 1V4 RE: PUBLIC HEARING STATEMENTS REGARDING RELOCATION OF

EDGEWATER CASINO Dear Mayor Robertson and Members of the Council: It is clear from the numerous statements regarding the status of the current Edgewater Casino as made by both Council members and public speakers through the first two nights of the public hearing that a crucial fact is not being addressed: the continued operation of the temporary casino beyond February, 2013 is uncertain. As Council knows, the Edgewater Casino was originally permitted in 2004 as a “Temporary” Class 2 Casino facility, with Development Permits originally set to expire December 3, 2008. As part of Paragon’s due diligence prior to purchasing the assets of Edgewater Casino, Inc., Paragon needed to, among other things, secure the extension of the casino’s Development Permits through July, 2013 so as allow adequate time to “identify, secure, entitle, finance, construct and open a permanent casino based mixed use destination project in the City of Vancouver” (Administrative Report – Extension of Time-Limited Permits for Casino-Class 2 Use, May 25, 2006). A copy of the report is attached. On May 30, 2006 City Council approved by unanimous resolution that:

“Council advise the Development Permit Board that based on the merits of the Paragon Gaming Inc. proposal it supports the Board’s consideration to the time-limited development permits for the Edgewater Casino from the current expiry date of December 3, 2008 to the earlier of:

a) Relocation of the casino operation to a premises other than the Plaza of Nations; and

b) July 31, 2013.”

On June 6, 2006 the Development Permit Board approved the extension of Edgewater Development Permits (DE408507 and DE40862). The Development Permit Staff Committee Report (May 31, 2006; copy attached) noted:



“Following a Public Hearing on January 20 and 21, 2004, City Council agreed to amend the CD-1 By-law governing the Plaza of Nations site to include “Casino-Class 2” as a permissible use. On the basis that the Plaza of Nations was intended to be a temporary location for a casino, enabling the proponents to secure a site and construct a new permanent casino facility elsewhere, Council adopted two resolutions relating to the Casino-Class 2 use being “time limited”.

Paragon was advised by City staff the City’s long term plans for the Plaza of Nation did not envision casino use and was ultimately seen as being more suited to civic, public assembly and performance events. Accordingly, both the City Council’s unanimous resolution of May 30, 2006 and the Development Permit Board’s June 5, 2006 approval of the permits’ extension included conditions that preclude the Plaza of Nations as a site for the Permanent Casino. During this same time period, Paragon was, prior to making the decision to purchase the assets of Edgewater Casino, Inc., negotiating with Canadian Metropolitan Properties, Inc. (CMP), the landlord of the Edgewater Casino, to extend the existing lease through 2013. Through that process Paragon learned that CMP would ultimately be seeking to redevelop the entire Plaza of Nations site. On August 9, 2006 CMP outlined its major development objectives for Paragon, including moving from an overall “entertainment” designation to, primarily, residential towers and a limited amount of commercial development. Paragon acknowledged that CMP’s expectations of the value of its waterfront lands were inherently greater than the values associated with securing a site on which to build a destination casino complex: values which would be driven more by attributes of visibility, access, and parking as opposed to the more subjective cache and value of expansive waterfront views. Specifically, CMP has presented plans to the City for the redevelopment of the entire site which, among other things, ultimately call for the demolition of Building B (where Edgewater’s offices and security/surveillance suite is) and Building C (where the casino is), to make way for CMP’s proposed build out of their new residential/commercial development. A recent comment made by the press: “in fact, the landlord is willing to consider building around the existing casino or incorporate it into the new community” is misleading in light of the fact that CMP made it quite clear in 2006 that its main focus was residential uses, and in 2010 CMP announced its intent to partner with Aquilini Group to build a hockey rink and a 200 room hotel: all of which would render the CMP site as unacceptable for Paragon’s long stated plans for developing a destination casino complex in Vancouver. In short, the development program presented by CMP is mutually exclusive of, and detrimental to, Paragon’s development objectives: CMP’s objective is essentially residential in character, with all site considerations designed to maximize the build out and value of residential uses. Additionally, statements made to the press by a representative of CMP that “with a tenant of that size, if we are able to accommodate them we would certainly look at that” are similarly misleading as CMP has been aware of our development program for four years, and acknowledged in 2006 that Paragon’s program was incompatible with what CMP sought for the Plaza of Nations lands, and the current plans presented to the North East False Creek Task Force are proof of that incompatibility.



Finally, Paragon has had discussions with CMP regarding the extension of the existing lease for a short term period beyond the current expiry of February, 2013 so as to allow the completion of construction and opening of the proposed destination casino complex at BC Place. As has been noted in the press comments of a CMP representative, CMP rejected Paragon’s proposal to extend the existing lease, and countered with a proposal for a new lease. Paragon has rejected that approach, as it will progressively remove Paragon’s existing lease rights to parking and use of the Plaza of Nations assembly area as CMP commences with construction of its development plan. Council will appreciate that, during the 2010 Olympic period, the Edgewater Casino was progressively shut off from its customers through loss of parking, loss of vehicular access and, ultimately, loss of patron access to the casino. What CMP has proposed will result in the same operating conditions for the Edgewater as it experienced during the Olympic period: Paragon would have been better off closing the doors to the facility. Accordingly, if the proposed project at BC Place is not approved by Council, Paragon will not seek any extension of the CMP lease beyond the July, 2013 expiry of the Development Permits. In summary, the ability to stay at the Plaza of Nations past 2013 is negated by:

1. the City of Vancouver’s Development Permit conditions: it was always intended to be an interim location;

2. the fact that CMP’s proposed project is not conducive to destination casino use; and 3. the fact that CMP is unwilling to extend Paragon’s existing lease rights beyond the

current February, 2013 termination date of the lease. Throughout this entire process, Paragon has worked in concert with the City, PavCo, and the BCLC to secure the entitlements required to relocate and develop the Permanent Casino as originally presented to City Council in 2006. As we have emphasized from the beginning, time is of the essence: a fact that was relayed in meetings Brent MacGregor and I had with individual councilors last summer and, of course, in meetings with City staff commencing in May, 2006. Council should consider the near term future of the existing Edgewater beyond February, 2013 is highly uncertain given the inability to achieve a lease term extension and, more importantly, pending operational impacts caused by development of CMP’s site. Accordingly, the flow of gaming revenues to the City and the permanence of over 600 jobs which currently exist at Edgewater are not guaranteed, and Council needs to understand that as it considers its decision on this application.



Very sincerely yours,

John Cahill Paragon Gaming, Inc. It’s Secretary CC: City Clerk, City of Vancouver Dr. Penny Ballem, City Manager, City of Vancouver Mr. Michael Magee, Chief of Staff, City of Vancouver Mr. Brent Toderian, Director of Planning, City of Vancouver Attachments: Administrative Report: Edgewater Casino – extension of time-Limited Permits

for Casino-Class 2 Use (May 24, 2006); Development Permit Staff Committee Report – 760 Pacific Boulevard (May 31,

2006); Plaza of Nations Concept Plan (July 10, 2006)

CITY OF VANCOUVER

ADMINISTRATIVE REPORT

Report Date: May 24, 2006 Author: Rob Jenkins Phone No.: 604.873.7082 RTS No.: 06006 VanRIMS No.: 11-3500-10 Meeting Date: May 30, 2006 TO: Vancouver City Council

FROM: Director of Current Planning in Consultation with the Directors of Social Planning, Legal Services and Development Services

SUBJECT: Edgewater Casino (at the Plaza of Nations) – Extension of Time-Limited Permits for Casino-Class 2 Use

RECOMMENDATION

THAT Council advise the Development Permit Board that based on the merits of the Paragon Gaming Inc. proposal, it supports the Board's consideration of an extension to the time-limited development permits for the Edgewater Casino (DE408507 and DE40862), from the current expiry date of December 3, 2008 to the earlier of: a) relocation of the casino operation to a premises other than the Plaza of

Nations; and b) July 31, 2013,

and requests the Development Permit Board consider this matter by June 9, 2006; and THAT if the Development Permit Board approves the extension, any consequential adjustments in the legal relations between the City and Edgewater Casino Inc. that the Director of Legal Services considers advisable shall be made by her on behalf of the City.

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of the foregoing.

A14 LATE DISTRIBUTION FOR COUNCIL – MAY 30, 2006

Edgewater Casino (760 Pacific Boulevard) - Extension of Temporary Permits 2

COUNCIL POLICY

Following a Public Hearing on January 20 and 21, 2004, Council approved in principle the application by Patrick Cotter Architect Inc. to amend CD-1 By-law No. 7592 for 750 Pacific Boulevard (Plaza of Nations) to permit a Casino – Class 2, this being a casino that includes slot machines. One of the conditions for approval is that the casino would operate at this site for a period no greater than four years from initial occupancy. False Creek North Official Development Plan identifies the Plaza of Nations complex as a commercial precinct. False Creek North: Land Use Policy (2005) (1) Special Event, Festival and Entertainment Functions – Commercial, entertainment, retail, hotel and tourist facilities are considered to be compatible uses at the Plaza of Nations; and (2) The Enterprise Hall (Edgewater Casino) is identified as a Legacy Building.

PURPOSE

This report seeks Council support for an extension to the time-limited development permits for the Edgewater Casino at the Plaza of Nations (760 Pacific Boulevard).

The Temporary Casino Use Covenant (BW315817) applicable to the Plaza of Nations site requires that any application for a time extension of the Casino use be referred to City Council for consideration.

BACKGROUND

Council approved an amendment to the CD-1 zoning on the Plaza of Nations site in 2004, to permit a Casino – Class 2 including slot machines. The Edgewater Casino subsequently opened on February 4, 2005.

Edgewater Casino Inc. (Edgewater), the Service Provider (casino operator) for the Edgewater Casino at the Plaza of Nations has been unable to operate on a profitable basis. Paragon Gaming Inc. (Paragon) entered into a contract to purchase all the issued and outstanding shares of Edgewater from its current shareholders. Subject to a number of conditions, including approval by the BC Lottery Corporation (BCLC) and the BC Gaming Policy and Enforcement Branch (GPEB), Paragon will, through this share purchase, become the new Service Provider to the BC Lottery Corporation for the Edgewater Casino. On May 2nd 2006, the Supreme Court of British Columbia granted initial creditor protection to Edgewater to June 9, 2006, at which time Paragon expects to be able to advise the Court whether or not it will complete the purchase of the Edgewater shares.

A key factor in its decision whether or not to complete the share purchase is the City’s extension of development permits DE408507 and DE40862. Paragon is seeking to obtain from the City an amendment to Development Permit DE408507 to extend the term of the current approved Casino - Class 2 use in Building "C" at the Plaza of Nations (BC Enterprise Building) and a similar amendment to Development Permit DE40862 to extend the term of the use of


138 parking spaces below Building "B" at the Plaza of Nations, for the exclusive use of the Casino. These development permits, issued on December 3, 2004, permit the Casino - Class 2 use and related parking for the Casino for a limited period of time expiring December 3, 2008. This date was chosen to allow the Casino operator sufficient time to secure a permanent site and facility in or near the downtown, an agreed long-term objective of both the operator and the City. It was not Council’s intent that the Casino use be temporary, just the location. The extension requested is until July 31st, 2013. A Temporary Casino Use Covenant (BW315817) applicable to the Plaza of Nations site, requires that any application for extension be referred to City Council for consideration. This report is scheduled for the May 30, 2006 meeting of Council. With Council’s advice, the extension to the development applications will be considered by the Development Permit Board at its meeting scheduled for June 5, 2006. Public delegations can address the matter at that time, before a decision is made by the Board. DISCUSSION At the time of the Edgewater Casino opening on February 4, 2005, the BCLC annual revenue projections for this casino were approximately $125 million, but only $73 million of gross revenues were actually generated during the first year of operations. This level of revenue makes it difficult for the Service Provider to pay for the ongoing operating costs out of their share of the gross revenues. Therefore, the Service Provider has not been able to pursue the long-term objective of securing a relocated permanent facility. Paragon’s application requests the extension "….to allow a seven year term of operation through July 2013 so as to: (1) secure financing required to acquire and reposition the Edgewater Casino; and, (2) identify, secure, entitle, finance, construct and open a permanent casino based mixed-use destination project in the City of Vancouver….. Paragon's first priority will be the stabilizing and repositioning of the Edgewater so as to generate the benefits all stakeholders originally envisioned." It is noted that a seven year maximum extension from now to July 2013 represents a four and one-half year extension from the existing approved expiry date of December 3, 2008. The property owner, Canadian Metropolitan Properties Corp., and the casino Service Provider, Edgewater Casino Inc., have confirmed in writing that they are aware of and authorize the application by Paragon. Stabilization and repositioning plan (see Appendix A for a full description) - Paragon advises that in the short run, with BCLC, GPEB, and City approval to proceed, they will complete the acquisition and commence a program of physical improvements and service enhancements permitted in 2004 but never completed. They further note that these improvements will significantly improve customer service and, importantly, the customer experience at the Edgewater Casino, including dining, entertainment, and community benefit improvements. Paragon is not seeking to increase the total gaming use already approved (up to 60 gaming tables and 600 slots).


Process to secure a permanent facility - Paragon notes that since the 2004 permit approvals no progress was made in identifying a permanent site and it is no longer possible to complete that process and open a permanent facility by December 3, 2008. Upon completion of the above-noted stabilization and repositioning of the Edgewater Casino, Paragon would commence a five- to seven-year comprehensive process to develop a concept, identify and secure a site, entitle, design, finance, construct, and operate a permanent facility in Vancouver in collaboration with BCLC and the City of Vancouver. A detailed description and schedule is provided in Appendix A. Paragon concludes it will take five to seven years to complete the process. City Public Benefits – City economic development policy supports employment opportunities for local residents. The Casino provides significant direct employment in the order of 600 jobs as well as indirect employment and economic and social benefits including a local hiring program, the funding of a social responsibility fund, and enhanced community access to the Plaza of Nations performance space. The public benefits related to the local hiring program and the social responsibility fund resulted from the 2004 CD-1 rezoning and are secured through legal agreements. The community access to the outdoor performance space at Plaza of Nations has been secured through a separate legal agreement with the owner of the Lands. It is not proposed that these agreements change. If the Casino can survive, these agreements would continue to apply with the noted public benefits accruing. The Casino also generates significant and necessary revenues for the City. (See Financial Implications section, following.) New Bingo Facility - A key factor in Council’s 2004 support for allowing the proposed casino at this location was the proponents’ commitment to build, as part of the permanent facility, a new adjacent or free standing bingo facility to benefit Vancouver-based bingo charities. This commitment was confirmed through a memorandum of understanding between the two parties (not by way of an agreement directly involving the City). The financial difficulties of Edgewater Casino Inc. have meant this commitment has not been pursued. However, Paragon and the bingo charities have agreed on a new plan to realize this commitment (see Appendix B, letters from Paragon and the Community Gaming Management Association [representing the bingo charities] confirming the agreed arrangement). Future development and other applications – Paragon, as part of its stabilization and repositioning plan has also discussed with senior staff, on a preliminary basis, a number of changes it is contemplating to the Edgewater Casino. These include, for example, changes to the pedestrian and vehicular access, signage, landscaping, an addition to the exterior of the building to contain a restaurant, and interior changes to provide a lounge/bar area. The applicant has deferred submission of development applications related to these matters until after the key matter of the extension of the time limits is addressed.

FINANCIAL IMPLICATIONS

Prior to the approval of the Casino in 2004, it was estimated that a fully operational casino at this location would generate approximately $6.5 million a year for the City. In 2005, being the first year of operation, the Operating Budget had only included $5.0 million of revenues.


However, given the changing regional gaming market conditions and the delay in opening the Casino, only $3.4 million revenues were realized by the City in 2005. For 2006, a total of $4.0 million has been assumed in the Operating Budget based on the last quarter results for 2005. The projection appears to be reasonable given the receipt of $985,000 in the first quarter of 2006. Without the continued operation of the Casino, there is a budget risk due to the loss of revenues to the City. Further, the extension of the development permits to 2013 would allow the operator to find an alternate location that in the long run would most likely increase revenue contributions to the City.

CONCLUSION

Extending the temporary time limit for the Edgewater Casino would enable the new proponent, Paragon Casino Inc. to improve the economic viability of the Casino, and in turn provide Paragon enough time to meet a commitment to the City to find a relocated permanent facility in Vancouver. The eventual relocation to a new facility at a new location would require a public hearing prior to a Council decision. There would also be a number of other public benefits which would result from the extension which include continued and potentially increased direct and indirect jobs, continued and potentially increased revenue to the City, and the delivery of benefits related to the Casino’s social responsibility and job creation program agreements. In addition, extension of the time limit will assist the Casino in pursuing its commitment to build a bingo facility to benefit Vancouver’s bingo charities.

* * * * *

CITY OF VANCOUVER COMMUNITY SERVICES GROUP

DEVELOPMENT PERMIT STAFF COMMITTEE REPORT

May 31, 2006

FOR THE DEVELOPMENT PERMIT BOARD June 5, 2006

760 PACIFIC BOULEVARD (COMPLETE APPLICATIONS) DE408507 & DE408622 – ZONE CD-1

RJ/AH/DK DEVELOPMENT PERMIT STAFF COMMITTEE MEMBERS Present: Also Present: B. Boons (Chair), Development Services R. Jenkins, Current Planning M. Thomson, Engineering Services A. Higginson, Development Services V. Morris, Social Planning K. Mulji, Engineering Services L. Gayman, Real Estate Services

APPLICANT: PROPERTY OWNER: John Cahill Canadian Metropolitan Properties Inc. Paragon Gaming Inc. 750 Pacific Boulevard 10072 Jasper Avenue Vancouver, BC Edmonton, AB V6B 5E7 T5J 1V8

EXECUTIVE SUMMARY

● Proposal: To extend the time-limited approval of the Casino-Class 2 use in Building C at the Plaza of

Nations until July 31, 2013 and to extend the time-limited use of 138 parking spaces in Building B to coincide with that date.

See Appendix A Standard Conditions Appendix B Standard Notes and Conditions of Development Permit Appendix C Report to Development Permit Board, DE408507, August 16, 2004 Appendix D Report to Development Permit Board, DE408622, August 16, 2004 Appendix E Memorandum to Development Permit Board, dated December 14, 2004 Appendix F Report to City Council, dated May 25, 2006 Appendix G Minutes of Development Permit Board, August 16, 2004 Appendix H Minutes of Development Permit Board, December 20, 2004 ● Issues: 1. Status of Casino Operator’s commitments to Bingo Charities ● Urban Design Panel: N/A DEVELOPMENT PERMIT STAFF COMMITTEE RECOMMENDATION: APPROVE THAT the Board APPROVE an extension to the time limit placed on the Casino-Class 2 use at the Plaza of Nations (Edgewater Casino) and the provision of parking to serve the Casino, as per Development Application Nos. DE408507 and DE408622, to July 31, 2013, subject to the following:

760 Pacific Boulevard (Complete Application ) May 31, 2006 DE408507 & DE408622 – Zone CD-1 RJ/AH/DK

2

1.0 Prior to the issuance of the development permit extensions, the following must be completed:

1.1 suitable arrangements must be made, to the satisfaction of the Director of Social Planning,

to confirm the commitment between the Casino Operator and the Bingo Charities, to realize the agreements reflected in the earlier memorandum of understanding between those parties.

Note to Applicant: See discussion on page 6. 2.0 That the conditions set out in Appendix A be met prior to the issuance of the Development

Permit extensions. 3.0 That the Notes to Applicant and Conditions of the Development Permit set out in Appendix B

be approved by the Board.


3

● Legal Description ● History of Application: Lots: 155 06 05 08 Request for time Extension submitted Plan: 21425 06 05 31 Development Permit Staff Committee District Lot: False Creek and 6352 ● Site: The Plaza of Nations site is located on the south side of Pacific Boulevard, across from BC Place Stadium. Three buildings surround the Plaza performance stage. The Edgewater Casino is located in the Enterprise Centre, known as Building C, (DE408507), immediately adjacent to False Creek. A portion of the parking for the casino is located under the adjacent building, known as Building B, addressed as 750 Pacific Boulevard (DE408622). ● Context: Significant adjacent development includes: (a) BC Place Stadium (b) GM Place (c) Area 9, False Creek North ODP (future park) (d) Area 6C, False Creek North ODP (e) Coopers Park (f) Coopers Park neighbourhood (under construction) (g) Area 5B, False Creek North ODP


4

● Background: Rezoning and Development Permit Approvals:- Following a Public Hearing on January 20 and 21, 2004, City Council agreed to amend the CD-1 By-law governing the Plaza of Nations site to include “Casino-Class 2” as a permissible use. On the basis that the Plaza of Nations was intended to be a temporary location for a casino, enabling the proponents to secure a site and construct a new permanent casino facility elsewhere, Council adopted two resolutions relating to the Casino-Class 2 use being “time-limited”: (a) That, prior to enactment of the CD-1 amending by-law, the proponents shall make arrangements to

the satisfaction of the Director of Planning and the Director of Legal Services to ensure that the Casino-Class 2 use at the Plaza of Nations complex will only operate at this location for up to four years after the issuance of the initial occupancy permit for this use.

(b) That, prior to approval by Council of an amended form of development for the Plaza of Nations

complex to accommodate a temporary Casino-Class 2, the applicant shall obtain approval of a development application by the Development Permit Board which shall have particular regard to the following:

(i) Casino-Class 2 use to be limited to a period of no greater than four years from initial

occupancy.” Prior to enactment of the amending by-law, a covenant was registered in the Land Title Office, establishing that the Casino-Class 2 use “will only operate on the Lands at this location for up to four (4) years after the issuance of the initial occupancy permit for this use”. The development permits for this project, related to the casino building and to the parking located under Building B, were also time limited for four (4) years. An Occupancy Permit was issued in January 2005 and the Edgewater Casino opened for operation on February 4, 2005. Request for Extension of the Time-Limited Approvals: In April 2006, City staff were advised that Paragon Gaming Inc. (Paragon), a Nevada-based gaming and entertainment company, had entered into an agreement with Edgewater Casino Inc. (Edgewater), the operators of the Edgewater Casino, to purchase all existing and outstanding shares of that company. If the purchase is completed, Paragon intends to make improvements to the Edgewater operation to increase its viability. In addition, and more germane to the request for the extension of the time-limited use at this site, Paragon has expressed their intention to pursue a permanent facility for a casino in the City and has laid out a time-line for the project, from concept to completion, which would extend until 2013. (See Appendix A within Appendix F) Paragon has requested, therefore, that the two development permits related to the Casino-Class 2 use, be extended until July 31, 2013. The request from Paragon does not seek to alter any of the existing agreements or commitments negotiated previously between Edgewater and the City, nor does it involve any proposed changes to the building or operation. A subsequent development permit application proposing changes to the building, the vehicular and pedestrian access, and landscaping is expected in the near future.


5

Council’s Consideration of the Request for a Time Extension: As required in the restrictive covenant registered prior to enactment, any request to extend the four-year time limit on operation at the Plaza site requires Council’s consideration. On May 30, 2006, Council passed the following resolution (See report attached as Appendix F):

“A. THAT Council advise the Development Permit Board that based on the merits of the Paragon Gaming Inc. proposal, it supports the Board’s consideration of an extension to the time-limited development permits for the Edgewater Casino (DE408507 and DE408622) from the current expiry date of December 3, 2008 to the earlier of: a) relocation of the casino operation to a premises other than the Plaza of Nations; and b) July 31, 2013, and requests the Development Permit Board consider this matter by June 9, 2006; B. THAT Council request the Development Permit Board seek confirmation from Paragon and the charity bingos to realize the agreements reflected in the earlier memorandum of understanding.* C. FURTHER THAT, if the Development Permit Board approves the extension, any consequential adjustments in the legal relations between the City and Edgewater Casino Inc. that the Director of Legal Services considers advisable shall be made by her on behalf of the City.” * Resolution B was not included in the staff report, but was established by Council on May 30.

● Applicable By-laws and Guidelines: CD-1 By-law (349) – By-law No. 7592 ● Response to Applicable By-laws and Guidelines: The current permits were issued in accordance with the CD-1 By-law. ● Analysis of Edgewater Performance – Public Benefits from Rezoning: As conditions of enactment, Edgewater was required to provide public benefits to Council’s satisfaction. They comprised the following: 1)Social Responsibility Fund – Social Responsibility Fund – The casino operator is required to pay to the City Two Hundred Thousand Dollars ($200,000) annually, in two installments, for the intended purpose of mitigating potential negative consequences associated with casino gaming.

Staff response: The required annual contribution of $200,000 for 2005 was received in one installment in September, and used, in part, to develop a Responsible Gambling Information Centre (RGIC) at Edgewater Casino. The Centre, which is now operational, was developed in partnership with the BC Lottery Corporation and Edgewater. 2) Job Creation Program – secured by way of a legal agreement, the program requires that ten percent (10%) of new Full Time Employees hired must be from the targeted groups (unemployed and


6

underemployed Vancouver residents, with the emphasis on residents of the Downtown Eastside area). The program affects both initial start-up hiring as well as subsequent on-going hiring. Staff response: In a memorandum dated March 31, 2006, Social Planning staff advised that Edgewater had provided information establishing that they have met and surpassed the minimum requirements outlined in the legal agreement. Within the casino, 11% of the employees were within the targeted group and within the contractors, 27% of employees were within the targeted group. 3) Community Use of the Performance Plaza - secured by way of a legal agreement, which provides that the performance space be made available to community groups for a minimum of three days a month, during the Casino’s term, enabling access to the performance stage, seating area, washroom facilities, loading and garbage facilities and back-of house facilities. Staff response: The Managing Director of Cultural Services advises that Edgewater has met their commitments under the Community Use Agreement. This resource and ongoing access to it is very valuable to the community. ● Edgewater’s Commitment to Bingo Charities As noted in the rezoning report, in 2003 a Memorandum of Understanding (MOU) was signed by Edgewater Gaming Inc. and the group representing the city’s Bingo Charities, which provided that a new and modern bingo facility would be developed in conjunction with development of a new permanent casino facility in the City. The expectation was that the new facility would be developed no later than 2006. Staff response: The new bingo facility has not been developed to date and will not be provided prior to the end of this year. In a letter dated May 23, 2006, Paragon has committed to working “cooperatively and in good faith” with Planet Bingo to implement a resolution to the matters addressed in the earlier MOU. (See Appendix B, page 1 of 2, to the Council report) In response, a letter has been received from the Community Gaming Management Association, on behalf of the bingo charities, supporting Paragon’s request for the extension of their time-limited approvals (Appendix B, within Appendix F). On May 30, 2006, Council passed a resolution advising the Development Permit Board to seek confirmation that the previous agreements between the bingo charities and the casino operator would be realized. (See Condition 1.1) ● Other Commitments

1) Provision of Parking - 365 spaces are available on-site, including the 138 spaces secured for exclusive use by the Casino within the underground parking under Building B (750 Pacific Boulevard). There is also significant off-site parking available within a ten-minute walk of the Plaza of Nations site. Accordingly, in December 2004, the DP Board accepted the following recommendation:

Given the downtown location of the proposed Casino, the proximity of ample existing short-term public parking in the area, and the opportunities to share existing parking resources with daytime workers, staff recommend that the Board support the relaxation of the parking requirements for the Plaza site, such that no additional off-site parking be required for this proposal. Support for this approach is limited to the four-year term of the development permit for the Casino, and an updated parking assessment should be completed prior to any extensions of the Casino approvals beyond this four year period.


7

Engineering Services staff are not aware of any problems to date arising from the operation of the parking and access serving the Casino. However, the applicant has indicated that they will be applying for new development applications to allow for building and site improvements . Staff note that traffic, parking and pedestrian patterns may be changed as a result of the new Casino operations, and therefore given this new proposal and the Development Permit Board's previous direction, staff recommend condition A.1.2

2) Temporary Casino Services Agreement - An agreement registered prior to development permit issuance required the property owner to provide a mid-block pedestrian signal on Pacific Boulevard; a pedestrian signal at Carrall Street; and improvements to the Carrall Street Greenway. Staff Response: The mid-block signal has not been installed, and if required will likely be located at Griffiths Way and Pacific Boulevard instead of the original location which was planned. Staff had advised the owner that the current low pedestrian volumes do not warrant the signal being installed at this time, but the situation will continue to be monitored. Funds have been secured from the owner for both the Carrall Street signal and the Carrall Street Greenway improvements. They will be expended in conjunction with the works to be completed by Concord Pacific at its future Presentation Centre site east of Carrall Street, which is anticipated to commence construction later this year (2006). 3) Access through the site - The owner was required to design, construct and maintain a new walkway/bikeway route through the site, which would not be impacted by the Casino access route and valet parking service area. Staff response: Engineering Services staff advise that the owner has completed improvements to signage and markings to the pedestrian bikeway/walkways north and south of the plaza stage and this has contributed to improved way-finding through the site. 4) Lighting Management Plan - The applicant has installed a comprehensive and sophisticated LED exterior lighting scheme that is programmable to create different effects. As a condition of permit issuance, a Lighting Management Plan was required, to allow the City to monitor and regulate the exterior lighting of the building. Staff response: Staff are not aware of any complaints being received related to the lighting system. 5) Policing - During the rezoning application in 2003, concerns were expressed that the introduction of slot machines at the Plaza of Nations would increase pressure on the Vancouver Police Department, both in terms of the potential for increased traffic and increased crime. Social Planning staff have been advised, by the Acting District Commander for District 1, that anecdotal evidence indicates no policing concerns directly related to the Edgewater Casino. ● Conclusion: Based on the foregoing, staff recommend that the time-limited use of Casino-Class 2, and the associated permit for Casino parking, be extended until July 31, 2013, subject to the conditions recommended in this report. NOTIFICATION On May 25, 2006, 4,200 letters were sent to neighbouring property owners advising them of the application. To date, 13 responses have been received. Six respondents stated that they support the requested extensions, on the basis that:


8

• the Casino provides an entertainment alternative; • the operation has been quiet with no traffic or visual impacts; • that the casino operators have been good corporate citizens; • there has not been any noticeable increase in crime related to the casino; and • the Casino provides jobs for approximately 600 people.

Seven respondents stated that they do not support the requested extensions, on the basis that:

• gambling is addictive and destructive; and • over time, there will be noise, traffic and disturbance impacts on the surrounding

neighbourhood. DEVELOPMENT PERMIT STAFF COMMITTEE COMMENTS: With respect to the decision by the Development Permit Board, the application requires the Development Permit Board to exercise discretionary authority as delegated to the Board by Council. There are no new/additional relaxations sought in this application for extension to time limits imposed on both DE408507 and DE408622. (See Appendix E – parking relaxation) The Staff Committee reiterated the need to revisit the issue of parking prior to 2013, once the Casino is operating at a higher occupancy and the condition can be analysed. The Staff Committee acknowledged that a further parking assessment would be required if new permit applications that affect the required parking are received.

B. Boons Chair, Development Permit Staff Committee

R. Jenkins Assistant Director of Current Planning Project Facilitator: A. Higginson

760 Pacific Boulevard (Complete Application) APPENDIX A DE408507 & DE408622 – Zone CD-1 Page 1 of 1

DEVELOPMENT PERMIT STAFF COMMITTEE RECOMMENDATIONS The following is a list of conditions that must also be met prior to issuance of the Development Permit. A.1 Standard Conditions A.1.1 arrangements must be made, to the satisfaction of the Director of Legal Services and the

Director of Planning, to modify all necessary legal agreements and arrangements between the City and Edgewater Gaming Inc., to reflect the extension to the time-limited approval of DE408507 and DE408622; and

A.1.2 arrangements to the satisfaction of the Director of Legal Services and the General Manager of Engineering Services for completion of a parking and traffic study to the satisfaction of the General Manager of Engineering Services. This study is to be completed prior to the earlier of twelve months after the date of issuance of any further development permits, or December 3, 2008.

Note to Applicant: The proposed arrangements would require that the applicant complete, at their cost, any on-site and/or off-site improvements or alterations recommended by the study to improve pedestrian and vehicular access to the site, and if deemed necessary, secure additional parking.

760 Pacific Boulevard (Complete Application) DE408507 & DE408622 – Zone CD-1

APPENDIX B Page 1 of 1

B.1 Standard Notes to Applicant B.1.1 It should be noted that if conditions 1.0 and 2.0 have not been complied with on or before

(July 31, 2006), this Development Permit extensions shall be deemed to be refused, unless the date for compliance is first extended by the Director of Planning.

B.1.2 This approval is subject to any change in the Official Development Plan and the Zoning and

Development Bylaw or other regulations affecting the development that occurs before the permit is issuable. No permit that contravenes the bylaw or regulations can be issued.

B.1.3 A new extension application will be required for any significant changes other than those

required by the above-noted conditions. B.2 Amended Condition of Development Permit: (see Appendix B to original DP Board report

for all original conditions established by the Board) B.2.1 These permits are for a time-limited approval ending July 31, 2013.

paragon gaming letter to vancouver city council - march 14, 2011

Documents