NEWS

New evidence obtained by the Ontario PC Caucus through Ontario's Freedom of Information Laws reveals that the Ontario Lottery and Gaming Corporation (OLG) was preparing to call for competitive bids on the future location of Casino Niagara, only to shelve those plans weeks later. The decision to abandon the Request for Proposal (RFP) came after the casino's existing landlord hired powerful Liberal lobbyist Bob Lopinski.

The existence of this previously secret RFP directly contradicts statements made by Premier Dalton McGuinty and Finance Minister Dwight Duncan that there had never been any serious consideration of a plan to move the casino. The existence of this sole-source lease extension also exposes that Dalton McGuinty was never serious about ending the practice of sole-sourced contracting, despite his repeated promises to do just that.

OLG was set to issue the detailed 55-page RFP to solicit a new permanent premise for Casino Niagara by February of 2009. Shortly before the RFP was to be issued, the current landlord for the casino hired Mr. Lopinski. OLG subsequently completely abandoned its plan for a competitive bid process and instead, handed sole-sourced lease extension to Mr. Lopinski's client.

Mr. Lopinski, who previously worked as a senior advisor in Dalton McGuinty's office, would subsequently be hired by the Maid of the Mist Steamboat Company to preserve its own untendered contract from being cancelled. Shortly after the Ontario PC Caucus raised questions about the Maid of the Mist contract in Ontario's Legislature, the McGuinty Government was forced to back down and return to a competitive process. No such re-opening of the process has taken place for the Casino Niagara deal. Dalton McGuinty's record betrays his rhetoric. Sole-sourced contracts continue to thrive in the McGuinty Government.

QUOTES

"We now have the smoking gun that proves Dalton McGuinty and Dwight Duncan misled the people of Ontario about their secret Casino Niagara Deal. Dalton McGuinty must end his cover-up and explain to the people of Ontario why OLG shelved its plans for a competitive process and what role Bob Lopinski played in this decision."

-- Ontario PC MPP Bob Runciman

"Dalton McGuinty promised he would end the practice of sole-sourced contracts. Yet not only was OLG permitted to pursue a sole-sourced lease extension, they ended up shelving a competitive bid process in order to do so."

-- Ontario PC MPP Bob Runciman

QUICK FACTS

"We have put in place new measures, including, for the first time in decades, bringing an end to a practice which allowed for the letting of untendered contracts; there now must be a competitive bidding process."
-- Dalton McGuinty, Hansard, September 30, 2009

"To not renegotiate that lease would have involved the construction of a new facility or the acquisition of another facility, and given the timelines associated with that and when the existing lease expires, this was really effectively the only option,"
-- Dwight Duncan, CP, October 27, 2009

"OLG seeks a partner that offers rental use of an existing facility or has the capability to build a new facility within the Central Tourist District. In addition, proponents are invited to table a range of creative development concepts that will complement the gaming business of both Fallsview and the new second casino site."
-- Excerpt from the shelved Casino Niagara RFP obtained by the Ontario PC Caucus through Ontario's Freedom of Information Laws.

Timeline of key events in Dalton McGuinty's Casino Niagara scandal:

Late 2008 – Early 2009

- OLG draws up a detailed 55 page RFP to solicit a permanent premise for Casino Niagara. The RFP is due to be released in February 2009.

January 7, 2009

- Canadian Niagara Hotels hires connected Liberal lobbyist Bob Lopinski

February 2009

- OLG shelves plan to accept competitive bids for the future site of Casino Niagara. The RFP is never released.

June 17, 2009

- Dalton McGuinty promises to end the practice of sole-sourced and noncompetitive contracting practices. Plans to pursue a sole-sourced and non-competitive process for the extension of Casino Niagara's lease continue unhindered.

October 27, 2009

- Ontario PC Caucus raises the Casino Niagara contract in the Legislature. The McGuinty Liberals claim the Casino Niagara contract cannot be tendered.

January 11, 2010

- Ontario PC Caucus releases the original Casino Niagara RFP obtained through Ontario's Freedom of Information laws. The RFP confirms that OLG was, in fact, planning to put the Casino Niagara contract to open tender.

March 2010

- Current Casino Niagara lease set to expire.