Open Letter to Mayor Rob Ford and Toronto City Council

TORONTO, April 10, 2013 /CNW/ -Here is the text of an open letter sent to Mayor Rob Ford and Toronto City Council

Dear Mayor Ford,

I am a resident of Toronto and I have been operating my restaurants in Toronto's Entertainment District since 1984.
I am writing to you about the proposed Toronto downtown casino.

I oppose both an integrated and a stand alone casino in the Front Street or the CNE Grounds.

I believe it is unethical for our City Government to invite OLG and a foreign casino operator to directly compete with local businesses for up to $1.5 billion discretionary entertainment dollars spent within Toronto.

On April 8, you made a point of saying a casino "shouldn't be judged on emotional or partisan rhetoric, but on facts." From my perspective as a downtown business owner here are the facts:

Toronto is not Windsor, Niagara Falls, Las Vegas, Macau or Singapore

The Provincial NDP Government approved the opening of a casino in Windsor in 1994 and in Niagara Falls in 1996 as destination casinos to revitalize these border towns.

Since there were no casinos in Detroit, Michigan and Niagara Falls, New York at the time, these Ontario casinos primary revenue source came from the U.S. same day visitors, bringing money into Ontario.

Unlike the casinos in Windsor and Niagara Falls, let alone Las Vegas, Macau and Singapore; 90% of this proposed Toronto casino revenue will come from Torontonians and GTA residents.

The proposed downtown Toronto casino will primarily feast on the 5 million Toronto and GTA residents and severely impact store-front businesses located in vibrant Toronto neighbourhoods.

Lost Revenue and Jobs

Up to $1.5 billion in discretionary entertainment dollars will be siphoned out from the local economy. In other words, businesses will suffer and jobs will be lost as local retailers, restaurateurs and operators of entertainment venues continue to pay the City the highest commercial property tax rate in Canada. If a casino were built, local businesses will lose revenue to the casino operators.

As an example, if a casino is approved in downtown Toronto, with 1000—2000 seat entertainment venue, it will be the last time you will see Jerry Seinfeld and Tony Bennett perform at Massey Hall and Roy Thomson Hall.

Casinos and Expanded Convention Space

As a long-time Toronto small business owner, I am jaded by empty promises.

Toronto has suffered through turbulent times. You are aware of recent challenges to hospitality businesses in Toronto:the recession, a Canadian dollar on par with the American dollar, not to mention SARS, an American tourist aversion to cross-border travel after 9/11, as well as tighter passport and border restrictions.

I have read the staff report regarding a casino in Toronto. I am intrigued by the co-relation of a casino and expanded convention space, making Toronto more competitive to pull in top tier conventions.

The report predicts 130,000 more convention visitors to Toronto, and direct spending of $392 million. Revenue from this proposed downtown Toronto casino will pay for an expanded convention centre.

My jaded mind asks the following questions:

1. Who and how were these numbers derived from? If these are legitimate numbers, why does the report not show supporting information?
2. Is there any actual evidence that "tier one" conventions would move to Toronto from their present location? No one has actually quantified how many more conventions would come to Toronto with expanded convention facilities, let alone a list of possible conventions that we can acquire.

Mr. Mayor, Toronto is not ever going to get shows like the "Consumer Electronic Show" held annually in Las Vegas no matter how much we expanded our convention facilities, one large continuous space or not. I would also remind you that there are already hundreds of entertainment options for conventioneers in the downtown core.

Expanded Convention Space - another "Game-Changer?"

Metro Toronto Convention Centre (MTCC) opened in 1984. A few years later, Tourism Toronto, formerly TCVB (Toronto Convention and Visitor Bureau) and MTCC lobbied the Provincial Government for an expansion to its facility.

TCVB said at the time that an expanded convention centre will be a "game-changer" to attract larger conventions. In 1997 the convention centre was expanded underground and added the South Building.

In 2002 Tourism Toronto and the Greater Toronto Hotel Association (GTHA) lobbied the Ernie Eves Government to allow Toronto and GTA hotels to collect 3% fees on rooms. They said that this 3% DMF (Destination Marketing Fund) will be a "game-changer" and allow Tourism Toronto to compete with other major Canadian and U.S. cities for conventions and tourism.

In 2003, McGuinty Government approved the 3% DMF - Tourism Toronto marketing budget quadrupled from $8 million to $30 million.

The results of these "game-changers?" - Convention bookings are flat at best with no real growth and U.S. visitors to Toronto have been on a continuous decline for many years.

I think the number of failed pie in the sky promises have jaded us all. If an expanded convention facility is a financially sound investment, then we should find ways to pay for it without a casino.

Mr. Mayor, I urge you and your City Council colleagues to reject any stand alone or integrated casino in downtown Toronto.

The facts say that a casino is NOT a good deal for Toronto.

Sincerely,

Fred Luk
Fred's Not Here/Red Tomato Restaurants
321 King Street West, Toronto,
Ontario M5V 1J5

Copy: Toronto City Council

Image with caption: "Open Letter to Mayor Rob Ford and Toronto City Council (CNW Group/Fred's Not Here Restaurant)". Image available at: http://photos.newswire.ca/images/download/20130410_C4202_PHOTO_EN_25410.jpg

SOURCE: Fred's Not Here Restaurant

Fred Luk
Fred's Not Here/Red Tomato Restaurants
321 King Street West, Toronto,
Ontario M5V 1J5