Council bets your municipal $$$ on lottery & gaming jobs

The Sault Ste. Marie Economic Development Corporation is hoping additional funding will ensure the city isn't left out in the cold when it comes to the modernization of one of it's largest employers.

At Monday's  meeting, city council voted 7-3 in favour of allotting $100,000 from the economic diversification fund towards the EDC to help them make sure we factor into the future plans of the Ontario Lottery and Gaming Corporation.

"In such a short period of time major decisions in relation to the OLG will be made and we need to act quickly," said Tom Dodds, CEO of the EDC. "It's not a done deal that Sault Ste. Marie is going to factor in any potential private sector business."

The EDC will use the funding to help the city play a key role in the OLG’s modernization process.

The money will allow the EDC to develop a business marketing plan aimed at painting the Sault as a prime destination for private sector business.

Additionally, the EDC will use the funding to help them identify those interested private sector parties.

The OLG's plan will see an estimated 2,300 new lottery and gaming industry jobs and 4,000 service sector jobs created by 2017.

Approximately $1.3 billion annually in net profits to the province from the OLG is also expected in the next five years.

"Tonight’s funding will be part of an effort to ensure the city is included in the job and revenue creation plans going forward," Dodds said.

The OLG will be engaging regulated private sector providers to expand lottery and gaming in the province as part of their modernization plan.

Part of it includes the converting of what Dobbs anticipates to be several jobs from the public to private sector

The OLG's procurement process for their modernization plan includes three key stages - those being: request for information, request for pre-qualification and request for proposals.

The initial stage of requesting information is already underway and has seen the OLG release a gaming model for casinos on May 17.

Following completion of the procurement process sometime in the late fall or winter, the OLG will select vendors to become private-sector providers for gaming and lottery.

Locally, key for the EDC will be finding out which organizations will be fulfilling those roles and convincing them to come to the Sault.

"Its private sector businesses who will be providing an increased amount of services under the OLG's modernization plan," said Dodds. "It's critical for us to get in front of these companies and give them reasons to come here."

Some local strong points identified by the EDC are experienced technical and financial capabilities through the OLG head office and casino staff, an award winning Innovation Centre with education synergies through Algoma University and Sault College and competitive, low-cost commercial/residential real estate.

"This particular process is a very specific sector focused endeavor in the area of lottery and gaming," said Dodds. "Right off the bat we need to be familiar with the ins and outs of that sector."

Now that funding has been secured, the next step for the EDC will be finalizing a terms of reference for the future project manager and consultant before choosing the two.

Dodds hopes to make public a request for proposals by June 10 so they can open the bidding process for a project manager and consultant around that time.

Ward 5 Councilor Frank Fata, who along with Ward 6 Councilor’s Frank Manzo and Joe Krmpotich voted against the increased funding, argued the EDC is overstepping their bounds.

“We’re stepping on the toes of our MPP,” said Fata. “He’s been the guy pushing and representing our city.”

Fata pointed to the recent announcement by Sault MPP David Orazietti of 25 new jobs for the community resulting from a partnership the OLG has reached with Canadian Bank Note Company.

Dodds countered Fata, saying this project is exactly the type of thing the EDC needs to be involved in.

“We need to be out there pushing our city,” said Dodds, while also committing to make good use of the funding increase. “We won't use money we don't need to in this process.”

As for the voting by council, Mayor Debbie Amaroso, along with Steve Butland (Ward 1), Pat Mick (Ward 3), Susan Myers (Ward 2), Terry Sheehan (Ward 2), Lou Turco (Ward 4) and Brian Watkins (Ward 3), were in favour of the motion for increased funding.

Ward 5 councilor Marchy Bruni, Ward 1’s Paul Christian and Ward 4’s Rick Niro declared conflicts and did not vote.