Casino By Vanshaw Medicine Hat Ab
- Casino By Vanshaw Medicine Hat Abroad
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- Casino By Vanshaw Medicine Hat Abandonment
A six-year-old rental dispute between Casino by Vanshaw and the Medicine Hat Lodge has resulted in the landlord locking the doors. Medicine Hat, AB T1B 3R2 P 403.527.1101 F 403.528.5696.
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By Collin Gallant on June 14, 2017.
cgallant@medicinehatnews.com0007 @CollinGallant
The Medicine Hat Lodge has come out strongly against a proposed relocation of Casino By Vanshaw, stating if gaming regulators permit a move out of its facility, the community, charity groups as well as its own bottom line would be hurt.
The Alberta Gaming and Liquor Commission is considering Vanshaw’s application to move, which comes about five months after a rental dispute saw the facility closed for several days in January.
A release from the Lodge management states that it’s worked with the casino for more than 20 years, helped to finance several expansions and Vanshaw should not be allowed to break its lease three years before it ends.
Lodge manager Raj Lokhande said the rental dispute is secondary to the AGLC application, the public feedback period for which ends on Thursday.
“We were quite surprised when they made the application (to move locations),” he told the News on Tuesday.
“The public should be aware of what’s happened with the dispute and the impacts to the community (of a move).”
Lokhande says gaming revenue would drop at a proposed location that’s two-thirds the size, not to mention a hit to tourism. Local groups provide volunteer workers to the casino and are assigned a portion of the proceeds.
A sudden move wouldn’t be fair to the Lodge or its owner, Mayfield Investments, he said, considering that the current lease runs through 2020.
“If this decision (to move) came three years down the road we would have time to plan contingencies,” said Lokhande.
“Breaking a legal agreement halfway through is not right.”
In late May, Vanshaw president Kevin Van Der Kooy told the News that a move to the Southside Events Centre, located near Strachan Road, would not affect revenue or the size of Vanshaw’s workforce.
Messages left at the casino for comment were not returned on Tuesday afternoon.
In May, Van Der Kooy said a final agreement was being worked out with established site restaurant, Squires Gastro Pub, to provide food and drink service.
Casino By Vanshaw Medicine Hat Abroad
He also reiterated his stance this month that his company hoped to work with a more “community minded” landlord in the future.
Court documents state that the rental dispute involved how square footage was calculated after the operation of the Elements Lounge at the Lodge. That operation was handed over to the Lodge by Vanshaw in 2014 in exchange for debt forgiveness and a share of the profits.
Vanshaw argued it should no longer be responsible for paying rent on the space and stopped paying rent entirely for some period.
A court ruling in the fall of 2016 found in favour of the Lodge, but suggested no specific relief, instead asking the parties to negotiate a mutually agreeable settlement. Vanshaw appealed the ruling, to be heard in July, and gained an injunction against the temporary closure.
AGLC officials told the News that relocation and the length of its deliberations will depend on the opinions submitted by the community.
Lokhande said since charity groups that benefit from casinos are major stakeholders in the decision, they should be sure to make their opinions, pro or con, heard by the AGLC.
The issue arose at city council on June 5 when it received the AGLC notice.
Mayor Ted Clugston said at the time that since there didn’t appear to be any zoning issues with the move, he didn’t feel it was necessary for the city to file any opinion.
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“There’s been some growth issues, there’s been some issues with the ownership between the two companies, there’s been various things that have caused some waves you might say,” said Van Der Kooy. “But, all in all, the 25 years [has] been a great experience.”
In January, tensions between the Medicine Hat Lodge and the Casino by Vanshaw came to a head when the hotel locked them out.
The issues arose over a dispute about rent payments.
The two parties are at odds over who should be paying for the lounge space located within the Casino, but is operated by the Lodge.
In October, a decision was made in favour of the Lodge and the Casino was ordered to pay arrears.
Vanshaw has filed an appeal which is scheduled to be heard in July.
Stagewest Hospitality, that parent company of the Medicine Hat Lodge, told CHAT News that today was the first it has heard of the proposed relocation after a public notice was issued.
“We need to be a part of the AGLC process, so we will now get ourselves inserted in that process,” said Dan Pigeon, chief financial officer for Stagewest Hospitality.
When asked if the company will be looking into a contingency plan if the casino move is approved, Pigeon said “because we are just learning of this today, I have no comment,” but, he added they will continue to work with the casino.
“As far as we’re concerned, we still continue to work with our tenant there to resolve all of our outstanding issues and continue to have Vanshaw as a tenant of the Medicine Hat Lodge,” he explained.
Kevin Van Der Kooy said he believes this potential move will be the best for everyone.
He said they plan to lease the South Side Events Centre and will also take over Squires Pub giving them the ability to customize the dining options and experience for guests.
As for the employees at the casino and Squires Pub, Van Der Kooy said at this point he doesn’t anticipate there will be any job losses and they will likely be looking to hire additional workers.
Several charities and school groups rely on the casino to provide funding for community based programs and projects.
Van Der Kooy said that won’t change if and when they move locations.
“There’s 182 non-profit groups that share this facility and fundraise through this facility,” he said. “Over the 25 years we’ve been in business [we’ve] put back over $75 million into the community.”
There’s no word on when the move would happen as the casino is currently in step two of the three part application process through the AGLC, which requires approval from the community.
The AGLC will have final say on the application to relocate the casino and it must also meet all federal, provincial and municipal regulations.
Casino By Vanshaw Medicine Hat Abilene
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