Niagara Falls pushing to have a say in casino operator negotiations

“We’re very supportive of separately managed properties, so that we can utilize the benefits of competition,” said Coun. Victor Pietrangelo.

“We’d like to see both properties, not just one, re-branded and re-developed.”

He said while the province is trying to find out what works best for its gaming modernization plan, the city needs to “let them know what works best for us.

“First and foremost is the long-term security of the employees at both of our casinos. Secondly, we have the businesses that rely on the casinos, and also the people that are employed by those businesses,” said Pietrangelo.

“This isn’t a minor decision that the province is about to make. I think we’ve been waiting almost 25 years in order to get this opportunity, so if we don’t get a kick at the can this time, then likely we’ll be waiting another 25 years.”

“

“

The OLG, which is a provincial Crown corporation, has issued a request for pre-qualification for what it describes as its Niagara Gaming Bundle, meaning Fallsview Casino and Casino Niagara

”

The RFPQ will enable OLG to pre-qualify proponents eligible to receive future request-for-proposal documents.

RFPQ applicants are required to provide information about their financial and technical attributes and capabilities, including proof of successful experience with similar projects.

The RFPQ will close Dec. 15. In a press release earlier this month, OLG said it expects to begin the RFP process in the coming months, which will lead to a service provider being chosen.

Pietrangelo’s resolution asking for city input was approved unanimously by council Tuesday night. The resolution also called for the RFPQ be postponed until the city's "goals and objectives are incorporated and we are treated as key partners in the process."

“

“

Right now, Falls Management Group operates Fallsview Casino and Casino Niagara on OLG’s behalf

”

Earlier this year, OLG notified Falls Management Group it will not extend its contract beyond its original term, which ends June 10, 2019. Falls Management Group is free to join the bidding process.

Throughout the procurement process, OLG said it will use a fairness monitor to provide oversight and advice.

“This is one of the most important issues that we have before us, and may ever have before us because depending on who is the successful applicant here, it’s going to make all the difference in the world,” said Coun. Wayne Thomson.

“Hopefully we’re going to have some of the big players out of (Las) Vegas come here, and they can really change this around and make this a game changer.

“Even if (a casino opens up) in Toronto, which is eventually going to come, we have to make sure that we blow them away here in Niagara Falls with our facilities, and we keep a high competition compared to what we have happening in Niagara Falls, N.Y.”

Coun. Kim Craitor, who spent 10 years as a Liberal MPP, said for Niagara Falls’ voice to be heard the city has to go beyond the OLG, and right to politicians at Queen’s Park.

“

“

You need to get the political will as well as what we’re doing here, he said

”

Mayor Jim Diodati said he and senior city staff have been in regular contact with Premier Kathleen Wynne’s office, as well as the office of minister of finance Charles Sousa.

Diodati said he has shared his concerns with Wynne, Sousa and the OLG that “we’re not going to end up with a big brand in Niagara Falls” such as Caesars Palace, Wynn and MGM Grand if “there’s not enough” in the RFPQ to “draw them in.”

Diodati said he and director of business development Serge Felicetti spoke to the president of one of the major brands in Las Vegas and they asked if they intended to bid in Niagara Falls.

“He said absolutely not, and we said why not? He said because the way it’s structured, you’re not going to get any of the major players stepping up because that’s just all about up-front money for the province. He said we appreciate that, but we’re not interested in a race to the bottom — who can give the most money to the province gets in.”

Coun. Vince Kerrio said council shouldn’t “beat (OLG) up too badly” because the city has had an influence on a separate process for a new entertainment centre in Niagara Falls.

“I know that they’ve taken some ideas that (Diodati) and the staff have brought (forward),” he said.

OLG spokesman Tony Bitonti said they received council’s resolution Wednesday.

He said the procurement process involves “a lot of information of a commercially sensitive nature” and because of that, won’t publicly discuss the details of any RFPQs or RFPs.

“But saying that, all the communities that are impacted by modernization, the whole process, have the opportunity, within these procurement rules, for input,” said Bitonti.

“

“

I can tell you that Niagara Falls has taken advantage of those opportunities

”

He said in every host community with an RFP process, OLG sets up a data room allowing proponents to access information OLG has received from host municipalities.

“We also connect the host municipalities with the prospective proponents through webinars, meetings, that type of thing, so they can discuss the opportunities, they can ask questions.”

Bitonti said he can’t talk about who may be interested in bidding, but added the Niagara casinos have been added to modernization to ensure “there is greater consistency in the provincial gaming market and that, ultimately, it will maximize the benefit of what we do.

“That money goes back to the people of the province of Ontario. The $2 billion that we raise now goes back to hospitals … for health care, for community infrastructure,” he said.

“We want to leverage the success that the Niagara casinos have had. Everything that we’ve done, we want to make sure that we maximize that benefit, not only for us, but for Niagara, for the gaming market, because we want to make sure that we can be competitive for the long term, especially with what we see across the border.”