Application for Relocation of the Delta Mayfair Bingo Hall

from 525 Wilson Avenue (Ward 8) to 1860 Wilson Avenue (Ward 6)

(City Council on December 16 and 17, 1998, adopted Recommendation No. (2) embodied in the following Clause and deferred consideration of the balance of this Clause to the meeting of Council to be held on March 2, 1999.)

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(Clause No. 1 of Report No. 14 of The Emergency and Protective Services Committee)

(City Council on December 16 and 17, 1998, adopted Recommendation No. (2) of the Emergency and Protective Services Committee and deferred consideration of the balance of the foregoing Clause to the regular meeting of Council to be held on March 2, 3 and 4, 1999.)

The Emergency and Protective Services Committee recommends:

(1)the adoption of the following joint report (October 15, 1998) from the Commissioner of Corporate Services and the City Clerk;

(2)that a Task Force chaired by Councillor Frances Nunziata, York Humber, be established with a mandate to report back to the Emergency and Protective Services Committee within six months on a City-wide bingo hall policy; and that Councillor George Mammoliti, North York Humber, also be appointed to said Task Force.

The Emergency and Protective Services Committee reports, for the information of Council, having:

(a)requested the City Solicitor to report back to the Emergency and Protective Services Committee with the proposed terms of reference for the Task Force to Review the City-wide Bingo Hall Policy;

(b)requested the Commissioner of Works and Emergency Services to submit a report to the Emergency and Protective Services Committee on the impact that the establishment of a bingo hall at 1860 Wilson Avenue will have on traffic in the community; and

(c)referred the following motion to the Task Force to Review a City-wide Bingo Hall Policy for consideration:

Moved by Councillor Nunziata:

"That the Commissioner of Corporate Services and the City Clerk be requested to:

(i)review the overall policy dealing with the locations of bingo halls in an effort to distribute halls evenly among communities; and

(ii)review the policy dealing with the number of halls and the number of sessions per charity in order to allow access into the gaming marketplace."

The Emergency and Protective Services Committee submits the following joint report (October15, 1998) from the Commissioner of Corporate Services and the City Clerk:

Purpose:

The purpose of this report is to outline options available to Council with respect to an application by Delta Mayfair Bingo to relocate a bingo hall from 525 Wilson Avenue to 1860 Wilson Avenue.

Funding Sources, Financial Implications and Impact Statement:

If the bingo hall relocation proposal is not approved, and Delta Mayfair Bingo Hall closes outright, the City's lottery licensing revenues would be reduced by approximately $150,000.00.

Recommendations:

It is recommended that City Council, in accordance with Provincial criteria and procedures for the establishment of Bingo Halls approve the relocation proposal by Delta Mayfair Bingo.

Background:

The Approval Process:

All applications to relocate existing bingo halls must be processed in accordance with the Province's "Criteria and Procedures for Bingo Halls", a copy of which is attached. Under these Criteria and Procedures, the municipal council's role is to review the application and forward its decision to the Province. The final decision is made by the Director of the Provincial Alcohol and Gaming Commission.

The applicant must file a copy of the proposal with the municipal council and the Director of the Alcohol and Gaming Commission, place a public notice advertising the proposal in a daily newspaper for two consecutive Mondays, and in a local newspaper, and ensure that the proposal complies with all municipal zoning requirements and by-laws. Respondents are given thirty days in which to comment on, or object to the proposal.

After the 30-day public notice requirement has lapsed, a municipal council may:

(1)hold a public meeting to obtain further information upon which to base its decision and to allow the applicant and respondents to outline their positions in a public forum;

(2)require additional information from the applicant to substantiate the proposal or address any of Council's concerns;

(3)require that the applicant fund an independent market study to be undertaken at the direction of and reporting to Council to determine the impact that a new commercial bingo hall would have on existing halls and charitable licences. The costs of the study are to be borne by the applicant.

The role of the City Clerk is to ensure that the process followed by the applicant is in compliance with provincial terms and conditions and to assess the benefit of the relocation proposal to the local community.

The Application:

On August 21, 1998, the City Clerk's Division of the City of Toronto received an application from Delta Mayfair Limited and an accompanying market study prepared by Kenneth Stroud & Company Ltd. for the relocation of an existing bingo hall from 525 Wilson Avenue to 1860 Wilson Avenue.

The Delta Mayfair Bingo Hall is currently located at the southeast corner of the intersection of WilsonAvenue and Tippet Road in Ward 9. The hall has been in operation since 1988. The building was last renovated in 1993 and the applicants advise that the building is in need of significant updating, upgrading and repair in order to bring it up to the standard of a modern bingo parlour. The applicants have been unable to negotiate a long-term lease for the facility at what they consider reasonable market rents and feel that without a long-term lease, the costs of renovating the facility cannot be justified. The lease situation, the urgent need to renovate, and other building and parking deficiencies are cited as the reasons for the proposed relocation.

The proposed site at 1860 Wilson Avenue is located approximately 6.3 kilometres west of the present site of the Delta Mayfair Bingo Hall on the north side of Wilson Avenue, just west of Clayson Road in Ward 6. The building was originally built for industrial uses, but has most recently been used as a flea market. The flea market has ceased operation. The facility has a gross floor area of approximately 24,000 square feet with separate smoking and non-smoking areas, and parking for 400 vehicles. The applicants advise that some renovations will be required to upgrade the building's appearance and the parking area lighting. A letter is also on file from the City's zoning staff confirming that the site is zoned for bingo hall use.

The applicant has complied with all Provincial requirements to date, having submitted a complete proposal and published notice of the proposed application in accordance with the provincial Criteria and Procedures. The applicant has also submitted a market study, on file in the Clerk's office, in anticipation of Council's need to determine the impact that the relocated hall would have on existing bingo halls and charitable licences. Objections have been filed by Keele Street Bingo Country Charities Association, Steeles West Bingo Country Sponsors Association and by two other individual charities, copies of which are attached. The City has also received two written submissions prepared on behalf of Bingo Country by Cadith Entertainments Limited and Price Waterhouse, objecting to the proposal, both of which are on file in the Clerk's office.

The Councillors for Wards 6 and 8 have been consulted on this relocation proposal.

Comments:

Delta Mayfair Market Impact Study:

The market impact study prepared by Kenneth Stroud & Company Ltd. focused on the impact of the relocated Delta Mayfair Bingo Hall on the other bingo halls in the area - namely Steeles West Bingo Country, Finch Bingo Country and Keele Bingo Country. The study included a patron survey of four bingo halls (Delta Mayfair, Steeles West, Finch and Keele), analysis of demographic data for the study area, interviews with key participants in the bingo industry, and an analysis of data on bingo hall attendance and income. Although the study was not done at the direction of Council, it does address the critical components that would normally be addressed be contained in an independent market study.

The major finding of the study was that the proposed relocation would not negatively impact Steeles West or Keele Bingo Country, but that it would reduce the number of patrons attending the 1:00 p.m, 7:00 p.m. and 10:00 p.m. time slots at Finch Bingo Country by an estimated 10 percent. The study concludes that the 1:00 p.m., 7:00 p.m. and 10:00 p.m. sessions would be negatively affected by the 10 percent loss of patrons, but for the most part, would remain profitable. A further analysis shows that a 15 percent loss in patrons would place many of the sessions at Finch Bingo Country in a loss position. The argument is made, however, that the charities at Finch Bingo Country will continue to receive proceeds, over and above bingo proceeds, from ancillary gaming events such as Super Jackpot, Nevadas and Superstar.

The study concludes that the relocation of the Delta Mayfair Bingo Hall is appropriate even though approval of the relocation will reduce the net proceeds to charities at the Finch Bingo Hall. This is based on the opinion that denying the relocation would result in the outright closure of Delta Mayfair Bingo Hall and eliminate all bingo fundraising opportunities for the 37 charities operating there.

Price Waterhouse Study:

The Price Waterhouse study is not a market study, but a financial analysis conducted on behalf of Bingo Country. The study shows the reduction in net charity profit at five Bingo Country halls that would result from a 5 percent, 10 percent, 15 percent and 20 percent reduction in attendance. The study concludes that there is a strong indication that the proposed relocation would result in reduced charity profits at one or more the of the five Bingo Country halls included in the study.

Cadith Entertainment:

The submission by Bingo Country (Cadith Entertainment) analyzed the annual impact on gross bingo hall charity receipts in the five Bingo Country Halls most affected by the relocation of Delta Mayfair. Using an across the board figure of a 10 percent reduction in attendance, the total reduction in annual charity receipts at the five Bingo Country halls would be $1.8 million.

Analysis:

The provincial "Criteria and Procedures for Bingo Halls" require that the following principles be applied in reviewing a proposal to relocate a bingo hall:

(a)that there be fair and equal access to the charitable gaming marketplace;

(b)that charitable organizations have the opportunity to maximize lottery fundraising dollars while recognizing the impact on other charitable organizations currently conducting bingos;

(c)that decisions respecting new bingo halls be made in the best interests of the local and regional communities where the proposed bingo hall is to be located; and

(d)that there be public input into the decisions concerning proposed new bingo halls or relocations of existing bingo halls.

Keeping these principles in mind, the following is an analysis of the options available to Council:

Option 1 - Approve the relocation.

Approval of the relocation of Delta Mayfair will enable the 37 charities currently operating out of Delta Mayfair to continue to raise funds through bingo events. However, based on the analysis provided in the Market Study, approval of the relocation will impact on the profitability of sessions at the Finch Bingo Hall and, ultimately, reduce the amount of bingo proceeds at the hall. Based on a sample analysis of the 1:00 p.m., 7:00 p.m. and 10:00 p.m. time slots at Finch, an estimated 40percent of the time slots would operate at a loss or on a break even basis as a result of the Mayfair relocation. It should be noted, however, that in the current situation, some of the sessions at Finch are already operating at a loss. Thus, the Mayfair relocation will put additional pressure on Finch to eliminate less profitable sessions, and to consider upgrading the hall facility to attract additional patrons.

Option 2 - Not Approve the relocation.

Delta Mayfair has stated that it will likely close if the relocation is not approved, leaving 37 Delta Mayfair charities without the ability to fundraise through bingos. If Delta Mayfair closes down outright, the 37 displaced charities would be placed on the unified City of Toronto waiting list for time slots in bingo halls across the City. This waiting list currently stands at 135 charities.

Conclusions:

Based on the above analysis, and recognizing that any decision made regarding this relocation will impact on charities conducting bingos, the priority must be to maximize access to fundraising opportunities to as many charities as possible. It is therefore recommended that Council adopt Option 1 - Approval of the Delta Mayfair Relocation proposal.

Contact Name:

Barbara McEwan

Director, Legislative Services

Tel: 392-4373

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The Emergency and Protective Services Committee reports, for the information of Council, also having had before it the following communications:

(a)(October 28, 1998) from Councillor George Mammoliti, North York Humber, advising that it is with great reluctance that he will endorse this item to be accepted by the Committee; expressing his opposition to the process followed to place this item on the agenda as he was not consulted thereon; and that he is opposed to the relocation of the Delta Mayfair Bingo Hall, due to the fact that it will be in the vicinity of a provincial welfare office and another Bingo Hall within his ward;

(b)(October 28, 1998) from Councillor Betty Disero, Davenport, advising of her support for the relocation of the Delta Mayfair Bingo Hall from 525 Wilson Avenue to 1860 Wilson Avenue;

(c)(October 30, 1998) from Mr. Ira T. Kagan, Solicitor, Kagan, Zucker, Feldbloom, Shastri, requesting, on behalf of the applicant, that the Committee support the recommendations in the staff report and advising that he will be at the meeting to address this issue;

(d)(November 2, 1998) from Mr. Cesar A. Palacio, Chair, Police Community Partnership, advising of his organization's support of the proposed relocation of the Delta Mayfair Bingo from 525 Wilson Avenue to 1860 Wilson Avenue;

(e)(November 23, 1998) from Mr. Orest Steciw, Executive Member, Desna Foundation, advising of his organization's strong opposition to the proposed relocation of the Delta Mayfair Bingo Hall from 525 Wilson Avenue to 1860 Wilson Avenue;

(f)(November 25, 1998) from Mr. Jack Scollnik, St. Basil The Great Ukrainian Catholic Parish, advising of his organization's support of the proposed relocation of the Delta Mayfair Bingo Hall from 525 Wilson Avenue to 1860 Wilson Avenue;

(g)(November 25, 1998) from Mr. Harry Nesmasznyj, Executive Director, Ukrainian Youth Association of Canada, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(h)(November 23, 1998) from M. Shepetyk, President, Ucrainica Research Institute, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(i)(November 25, 1998) from Ms. Bonnie Charbonneau, Executive Director, and Mr.JimmyDibartolomeo, SBHAO Member, Spina Bifida and Hydrocephalus Association of Ontario, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(j)(November 26, 1998) from Ms. Verna Tardiff, Bingo Coordinator, Canadian Mental Health& Oakville Waldorf Support Group, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(k)(November 26, 1998) from Ms. Sylvia Kunanec, Ukrainian Catholic Women's League of Canada, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(l)(November 24, 1998) from Mr. Dennis LaPrise, President, Toronto and Central Ontario Regional Hemophilia Society, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(m)(November 25, 1998) from Mr. John J. Maroney, Duffield Sports' Club of North York, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(n)(November 23, 1998) from W. Okipriuk, President, "Dim Prosvity" Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(o)(November 26, 1998) from Ms. Mary Wilton, Executive Director, Ontario Water Polo Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(p)(November 26, 1998) from Ms. Faye Blackwood, Technical Director, Sport for Disabled Ontario, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(q)(November 26, 1998) from Mr. David Archer, The Hannaford Street Silver Band, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(r)(November 27, 1998) from Ms. Lena Jackson, Executive Director, Canadian Mental Health Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(s)(November 30, 1998) from Councillor Joan King, Seneca Heights, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(t)(November 27, 1998) from Ms. Donna Webb, Associate/Fundraising, The Ontario Soccer Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(u)(November 26, 1998) from Ms. Shadell Permanand, Acting Director, Conflict Mediation Services of Downsview, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(v)(November 27, 1998) from Mr. Cecil Smith, Executive Director, Ontario Track and Field Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(w)(November 27, 1998) from Mr. Shelly R. Rodney, Emery Collegiate Institute, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(x)(November 27, 1998) from Mr. Jack Herson, Beth Sholom Synagogue, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(y)(undated) from Mr. Gary Gladstone, Chair, Mayfair Bingo Downsview Pooling Associations, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(z)(November 30, 1998) from Mr. Walter Hall, President, Albion Bingo Country Charities Sponsors Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(aa)(November 28, 1998) from Mr. John Long, President, Etobicoke Volleyball - Toronto West, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(bb)(November 26, 1998) from The John Brooks Community Foundation and Scholarship Fund in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(cc)(November 30, 1998) from Mr. George Ullman, President, Counterpoint Musical Services and Board Member of the Hannaford Street Silver Band, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(dd)(November 27, 1998) from Rev. Peter Babej, Vice-President of The C.U.C.E. and Ms.Jaroslawa Kisyk, Secretary of The C.U.C.E., The Committee for Ukrainian Christian Education, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(ee)(November 30, 1998) from Ms. Francine Raymond, President, Ontario Water Polo Athlete Development, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(ff)(November 29, 1998) from Ms. Theresa Labrecque, Chairperson, St. Benedict Church, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall;

(gg)(November 27, 1998) from Mr. Murray Goodfellow, Trustee, Knights of Columbus, 3945Charitable Trust, in support of the proposed relocation of the Delta Mayfair Bingo Hall;

(hh)(November 30, 1998) from Ms. Sandra Whiting, President, Black Business and Professional Association, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall; and

(ii)(November 30, 1998) from St. Alban's Boys' and Girls' Club, in opposition to the proposed relocation of the Delta Mayfair Bingo Hall.

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The following persons appeared before the Emergency and Protective Services Committee in connection with the foregoing matter:

-Mr. Ira Kagan, Kagan, Zucker, Feldbloom, Shastri, Barristers and Solicitors, Toronto, and filed a written submission ;

-Mr. Cam Johnstone, Delta Mayfair Bingo; Mississauga;

-Mr. Adam Brown, Brown, Dryer, Karol, Barristers and Solicitors, Toronto;

-Mr. David Welch, Toronto;

-Ms. Jane Bishop, Executive Director, Toronto and Central Ontario Hemophelia Society, Toronto;

-Mr. Murray Goodfellow, Humber Valley Council 3945 Knights of Columbus, Toronto;

-Ms. Linda Stapleton, Manager Athletics and Recreation, Seneca College of Applied Arts and Technology, Toronto;

-Mr. Mike Stacey, Managing Director, York Lions Steel Band, Toronto, on behalf of the York Bingo Association;

-Ms. Jean Bickford, on behalf of the York Bingo Association, Etobicoke;

-Mr. Walter Huculak, Toronto;

-Ms. Mary Wilton, Executive Director, Ontario Water Polo Association, Toronto;

-Mr. Barry Lowe, Toronto Humber Rotary Club, Finch Bingo Hall, Toronto;

-Mr. John Craig, Ontario Track and Field Association, Thornhill;

-Mr. Florian Markon, Our Lady of Miraculous Medal Church, Mississauga;

-Dr. John Brooks, Chair, Fundraising Committee Director, The John Brooks Community Foundation and Scholarship Fund, Toronto;

-Mr. Domenic Muia, Chairman of the Steeles West Charities Association, Toronto;

-Ms. Jaroslawa Kisyk, Toronto;

-Mr. Gary Gladstone, Chair, Mayfair Bingo Downsview Pooling Associations, Toronto, and filed a written submission; and

-Mr. Allan O'Neill, Kenneth Stroud and Company Ltd.

The following Members of Council also appeared before the Emergency and Protective Services Committee in connection with the foregoing matter:

-Councillor George Mammoliti, North York Humber; and

-Councillor Joan King, Seneca Heights.

(City Council on December 16 and 17, 1998, had before it, during consideration of the foregoing Clause, the following communications with respect to an application for relocation of the Delta Mayfair Bingo Hall from 525 Wilson Avenue (Ward 8) to 1860 Wilson Avenue (Ward 6):

(i)(December 5, 1998) from Mr. Jeff Phillips, Sexton, Congregation Shaarei Tzedek;

(ii)(December 11, 1998) from Ms. Mary Wilton, Executive Director, Ontario Water Polo Association;

(iii)(December 14, 1998) from Mr. Chris Foster, Executive Director, St. Alban's Boys' and Girls' Club; and

(iv)petition submitted by various charities operating bingo at Delta/Mayfair Bingo.)