Paragon Expansion Shot Down in Vancouver

Paragon Gaming’s campaign to create the largest casino in Western Canada came to an end last week when Vancouver city council unanimously rejected the proposal. In what has been one of the most contentious battles to be waged over the expansion of a casino, council ultimately came to the decision that the project did not fit with the city’s image.

With the support of B.C. Pavilion Corp. (PavCo), Paragon Gaming had proposed the relocation and expansion of its Edgewater Casino from the Plaza of Nations to land next to B.C. Place Stadium. The $500 million project would have included two hotel towers run by Marriott International, 1,500 slot machines and 150 table games. PavCo is in charge of developing the land around the stadium, and was counting on the new casino to offset renovation costs of the enclosed stadium’s roof. The company expected to get $6 million a year from Paragon in a 70-year lease deal.

But opposition to the project began to mount last year, with several community and professional groups creating the Vancouver Not Vegas! Coalition. Over 1,000 letters debating the plan were sent to city council. In a public hearing that stretched over five days, 145 people spoke, 83 opposing the plan. These included academics, doctors and respected former politicians who cited the canards of crime, public safety and gambling addiction as their main concerns.

This was enough to sway city council, whose members had nothing to gain politically from the controversy. They rejected the relocation unanimously, although they did approve the right for Paragon to relocate next to B.C. Stadium and proceed with a mixed commercial and hotel complex.

Leading the charge was Mayor Gregor Robertson, who stated “Enabling the largest casino in Western Canada in our downtown doesn’t fit with Vancouver’s global brand as the world’s most livable city, the Green Capital, and hotbed for innovation, from clean and digital technology to resource management.”

Robertson went on to declare a moratorium on all future gambling facilities until a long list of demands were met. Council made it clear that the B.C. Lottery Corp. had themselves to blame for the rejection, citing their failure to properly consult with the public and their lack of “internationally recognized best practices” for dealing with a wide range of negative gambling issues.

The decision will have a significant financial impact for the province. Aside from the annual $6 million Paragon promised to lease the land, the province gets 51.5 per cent of gross revenues at all casinos. Paragon had projected that new casino revenues could increase from the current $120 million to $390 million, giving the province an extra $140 million a year. But these figures have been disputed as being overly optimistic. And although the province gets the lion share of profits, the city receives only 4 or 5 percent of casino gross revenue.

Paragon and PavCo representatives have said it is too early to decide whether the entire development is dead or whether it could go ahead without the expanded casino. Scott Menke, Paragon president, hinted that he may look to move the casino elsewhere in the metro Vancouver area before the current lease expires in 2013.

By Staff