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By Collin Gallant on June 14, 2017.
cgallant@medicinehatnews.com0007 @CollinGallant
The Medicine Hat Lodge has come out strongly against a proposed relocation of Casino By Vanshaw, stating if gaming regulators permit a move out of its facility, the community, charity groups as well as its own bottom line would be hurt.
The Alberta Gaming and Liquor Commission is considering Vanshaw’s application to move, which comes about five months after a rental dispute saw the facility closed for several days in January.
A release from the Lodge management states that it’s worked with the casino for more than 20 years, helped to finance several expansions and Vanshaw should not be allowed to break its lease three years before it ends.
Lodge manager Raj Lokhande said the rental dispute is secondary to the AGLC application, the public feedback period for which ends on Thursday.
“We were quite surprised when they made the application (to move locations),” he told the News on Tuesday.
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“The public should be aware of what’s happened with the dispute and the impacts to the community (of a move).”
Lokhande says gaming revenue would drop at a proposed location that’s two-thirds the size, not to mention a hit to tourism. Local groups provide volunteer workers to the casino and are assigned a portion of the proceeds.
A sudden move wouldn’t be fair to the Lodge or its owner, Mayfield Investments, he said, considering that the current lease runs through 2020.
“If this decision (to move) came three years down the road we would have time to plan contingencies,” said Lokhande.
“Breaking a legal agreement halfway through is not right.”
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In late May, Vanshaw president Kevin Van Der Kooy told the News that a move to the Southside Events Centre, located near Strachan Road, would not affect revenue or the size of Vanshaw’s workforce.
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Messages left at the casino for comment were not returned on Tuesday afternoon.
In May, Van Der Kooy said a final agreement was being worked out with established site restaurant, Squires Gastro Pub, to provide food and drink service.
He also reiterated his stance this month that his company hoped to work with a more “community minded” landlord in the future.
Court documents state that the rental dispute involved how square footage was calculated after the operation of the Elements Lounge at the Lodge. That operation was handed over to the Lodge by Vanshaw in 2014 in exchange for debt forgiveness and a share of the profits.
Vanshaw argued it should no longer be responsible for paying rent on the space and stopped paying rent entirely for some period.
A court ruling in the fall of 2016 found in favour of the Lodge, but suggested no specific relief, instead asking the parties to negotiate a mutually agreeable settlement. Vanshaw appealed the ruling, to be heard in July, and gained an injunction against the temporary closure.
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AGLC officials told the News that relocation and the length of its deliberations will depend on the opinions submitted by the community.
Lokhande said since charity groups that benefit from casinos are major stakeholders in the decision, they should be sure to make their opinions, pro or con, heard by the AGLC.
The issue arose at city council on June 5 when it received the AGLC notice.
Mayor Ted Clugston said at the time that since there didn’t appear to be any zoning issues with the move, he didn’t feel it was necessary for the city to file any opinion.
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