The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

OLG agreement appears to be too one-sided Continued from page 1 9 · Thursday, April 12, 2012 OAKVILLE BEAVER · www.insideHALTON.com The OLG has offered to provide an assurance in writing that slot machines would not be introduced, however, this would be non-binding. "Staff is concerned as to why the OLG is prepared to issue a written statement to this effect, but not willing to incorporate such a clause into the `legal' agreement," said Bouillon in the report. Mayor Rob Burton discussed why council is so concerned about this agreement in a Letter to the Editor delivered to The Oakville Beaver (included at the end of this story). "When council required control of the introduction of any new forms of gaming, we did so believing that you, as an Oakville resident, would expect and want us to do that," he wrote. "When Oakville residents voted on gambling in a referendum years ago, they voted against gambling. It was not a binding referendum, but it is the only expression of public opinion on the subject we have." The length of the arrangement was another source of concern for Town staff as the agreement, as currently presented, runs for eight years with two consecutive automatic fouryear renewal periods totalling 16 years. The arrangement also states that if for any reason the OLG decides to cancel the deal, it may provide no less than a 90-day notice of non-renewal. The Town has no such cancellation authority. "I believe this is an unacceptably one-sided clause," wrote Burton. In a response to the concerns of not only Oakville, but other municipalities across the province, the OLG has stated there is no termination clause within its Charitable Gaming Centre Municipality Agreement for charity associations, bingo centre service providers or municipalities. The rationale is that all three parties must be aligned to the same contract term to fulfill key financial targets. Town staff also voiced concern about Oakville not being given authority to negotiate the terms of the arrangement and about the reduced revenue the Town will receive from charitable gaming under the agreement. Bouillon said the OLG is forecasting the Town's bingo licencing revenue will be reduced by 20 per cent annually under the new initiative. While signing the OLG deal could have consequences that council and residents may not like, not signing the agreement could also cause problems. In his report, Bouillon said declining to execute the deal would result in Oakville's Delta Bingo facility not being permitted to participate in the Province's e-Bingo revitalization initiative. Delta Bingo, Bouillon said, has suggested that if it can't participate in the e-Bingo initiative the business may go under, thereby severely restricting the ability of local charities to generate funding. Last summer, when the issue of e-Bingo at Delta was before Town council, councillors heard if the Town rejected an e-Bingo proposal, Oakville's last remaining bingo hall, Delta Bingo on Speers Road, may close -- and local charities stand to lose up to $750,000 annually. That drew many of those charities to the council chamber for the debate. There are currently 34 charities licensed to conduct events at the Delta Bingo facility, located at 483 Speers Rd. In 2011, the net proceeds to these charities totalled around $880,300, including bingo and break-open ticket sales. The OLG forecasts that in the first year of operation the net proceeds under the e-Bingo revitalization initiative would be $1.5 million. Town staff questioned the OLG's projected revenues under the revitalization stating it may be over-estimated. "Now, the OLG and Delta Bingo have alarmed many of the Oakville charities who benefit from payments from Delta Bingo from their proceeds. The charities have expressed their alarm to council and me in numerous e-mails demanding to know why we have not hurried to sign the OLG contract," wrote Burton. "The reason for our delay has been repeated, unsuccessful discussions with the OLG to get them to include the safeguards they promised us." Burton is calling on residents to express their viewpoint on this issue. He can be reached at oakvillemayor@gmail.com. This item will be discussed during Monday's council meeting, which will take place in Town Hall's council chambers beginning at 7 p.m. Discussions regarding this issue were held during Wednesday's Administrative Services Committee and a story regarding any developments there will be published in an upcoming edition. Editor's Note: The following letter was filed with The Oakville Beaver by Mayor Rob Burton. What forms of gambling should happen in Oakville? Should council permit Delta See Mayor page 10 TKR1242 TKR1242 Burlington STOREWIDE SAVINGS Plus 12 month Equal Payment Financing* INTRODUCING... SPELLBOUND *THOMASVILLE BURLINGTON 2269 Fairview Street, Burlington Ph. 905-631-6000 *See store for details APRIL 2012 INVENTORY BLOWOUT SALE