Proponents here are betting on the future of Centre Wellington and the Grand River Raceway.
On Nov. 7 Centre Wellington council held a public meeting on the rezoning of the facility to include not only up to 450 slot machines – but also gaming tables.
Current site specific provisions limit permitted gaming at the site to a maximum of 450 slot machines, although there are only 252 slot machines on site.
Amendments would permit other types of gaming, such as table games.
With between 40 to 50 area residents attending the meeting at Aboyne Hall, Centre Wellington councillors heard impassioned pleas both for and against proposed expansion plans for the raceway.
Grand River Agricultural Society officials meanwhile, are trying to keep their options open. They believe additional gaming options will position the Grand River Raceway to be considered as a host site for an expanded facility.
Proponents in favour of the expansion looked at the financial benefits to the community and the projects that may never have been completed without the money the Ontario Lottery and Gaming Corporation (OLG) annually gives back to the township.
Opponents argued hosting expanded gaming at the raceway may not be in the best interest of the community due to potential costs associated with gambling.
MHBC Planning was retained by the Grand River Agricultural Society to provide advice and undertake a planning justification report in support of the proposed broadening of gaming at the raceway.
MHBC partner and planning consultant Pierre Chauvin noted the company has been involved with the project since the inception of the raceway facility in Elora.
He said the site is very well established, having been there since 2003. It hosts an average of 48 racing events each year.
The facility consists of a gaming site (for slots as well as off-track betting), a half-mile track for standardbred horse racing, barn, outbuildings and grandstands with seating for 1,500 people.
Other accessory uses at the site include restaurants, meeting rooms, a gift shop, and the head office of the Grand River Agricultural Society.
The slots facility is operated by OLG and features 242 machines. It is open 24 hours per day, seven days a week.
OLG gaming reform
Chauvin said the province directed the OLG in July 2010 to modernize commercial and charitable gaming in the province.
Following a comprehensive consultation process, the province released a strategy for modernizing lottery and gaming in Ontario.
One of the most pertinent recommendations is that gaming facilities will only be located where there is consumer interest, thereby removing the requirement for the location to be shared with a horse racing facility.
In addition, new or expanded facilities will only be permitted where a municipality has explicitly approved them, he said.
Chauvin said the OLG has identified distinct gaming zones across the province where existing or new gaming sites could be permitted.
The Grand River Raceway is on the outer boundary of one of the 12 sub-zones within the southwestern Ontario region. Only one gaming facility is permitted within each of the sub-zones.
While it appears the Grand River Raceway would be a prime candidate to host such a facility – “it is not a given” Chauvin said.
He explained the province is opening up a procurement process whereby interested parties would submit proposals to operate a site within a defined area.
“Ultimately the type of gaming facilities would be determined by the gaming operator, largely based on a market evaluation.
“Essentially we are trying to position the Grand River Raceway so that is appealing to a potential operator to locate here.”
Without these changes, Chauvin believed there is the strong possibility Elora could lose its facility.
Chauvin said the idea is to make the site appealing to prospective operators for the long term. He added this would allow the Grand River Raceway to operate on an even playing field with other gaming operators in the region such as Mohawk Raceway and the Brantford casino.
“We can’t have this conversation without considering the many community benefits the raceway has brought to this community,” Chauvin said. “To date, the slots have provided $25.7 million to the township, an average of $2-million per year.”
He suggested that is the equivalent of 10% of the township’s operating budget.
Chauvin stated the facility generates $7.1 million annually in direct wages from OLG and $1.3 million from the Grand River Agricultural Society. He added that since opening, the facility has generated $95.3-million in combined direct wages.
Dr. Bob Wright spoke on behalf of the equine industry and the local Rotary Club of Fergus Elora.
Wright, who was employed by the Ministry of Agriculture for 33 years (23 as lead veterinarian – equine), has authored publications regarding the Ontario horse racing industry and its economic impact.
“Wellington County is the heart of the horse industry in Ontario with 60,000 horses in this region,” he said, adding the OLG is the second largest employer in Elora, with 161 full and part-time staff. He noted the OLG sponsors myriad local events.
Wright said payments to the township over the past decade have been directed to numerous infrastructure projects such as bridges, street and rural road reconstruction, improvements to township buildings and recreational facilities.
“What would we do without that $2.2-million per year?” he asked.
Wright added one of the contributions that tends to get missed are the discounted or donated space for community events. He used the example of the raceway hosting the Rotary bingo each month, which “has allowed us (as a club) to raise about $700,000 which in turn goes back to support the community.”
Wright said the raceway has a huge impact on the Centre Wellington community. He stated over 4,000 acres of farm land are used just to feed the race horses.
“We can’t afford to lose them (the raceway and OLG). It would be a major impact on the community,” Wright said.
Longtime Centre Wellington resident Brian Green said he lives one mile from the raceway.
“Since OLG came to Elora in September 2003, I’ve been very impressed at how well the slots and the raceway have benefitted the community,” said Green. He added he has not been affected by noise, lights or traffic.
He said the general consensus of his neighbours has always been positive.
“We need to work with the Grand River Raceway to help it grow, so that it can become even more productive and provide stabilization for the racing industry.”
Klaas Sikkema of Fergus said, “I am against gambling, therefore I am obviously against adding to what we have now. I believe that God will provide all our needs if they are doing an honest day’s work.”
He said gambling is very addictive and has devastated many families.
Resident Ron Van Leeuwen asked about the target customers of the facility – were they Centre Wellington residents or people from outside the area? He then asked if this would change should the facility expand.
The response was customers tend to come from within a 40km radius.
Van Leeuwen contended some of the money coming to the township each year “is off the backs of our own residents … and some from our neighbours.”
While he appreciated the current benefits of the raceway, Van Leeuwen was not convinced expansion benefits outweigh the negatives.
Council questions
Councillor Steven VanLeeuwen said he is concerned the mission statement of the OLG seems to be to get as much money from the public purse as possible to assist with many other projects.
“Where does it stop and where are the limits?” he asked. He said he is concerned the upper limits could reach 1,200 slot machines – as per OLG vision of opportunity.
“This could open up this area to a huge amount of gambling and takes away local control.”
Raceway manager Dr. Ted Clarke stated that number was proposed by the OLG before any market evaluations were conducted. He noted a similar type of operation is being constructed in Belleville, with 400 slot machines and 20 to 22 tables.
Clarke anticipated casino operations at Mohawk Raceway and at Flamboro Downs. He noted the casino in Brantford has 500 slots and 50 tables.
At the same time, Clarke stressed he is not the gaming operator looking at this region for a business case, adding, “At the end of the day, it will be the province which approves the size.”
Councillor Kirk McElwain asked if the racetrack would survive if the gaming aspect moved to another community.
Clarke said there a lot of factors in play right now.
“One of them is the integration of horse racing into the OLG.” He said “the likely state of affairs will be that racing will survive best where there is gaming … because some of the additional revenue from gaming would be used to support the racing.”
But, Clarke added, “how many tracks will be left … to continue a viable racing industry?”
