Casino News

KED’s Legal Battle Costs Swell to CA$500,000 Veiled in Uncertainty

Kingsway Entertainment District is among the large projects in Greater Sudbury that would need a couple more years of construction before they could welcome their first patrons. The legal battle around this controversial project and the delays of the special zone are estimated to cost some CA$500,000. Up until this point, city coffers have contributed some CA$2.2 million of taxpayers’ money for the initial phase of the project.

What should be taken into account when it comes to Kingsway Entertainment District is the estimated overall prize of this diverse zone. Projections are that it would cost about CA$100 million, a cost shared between the city and developers taking care of it. As of now, the project is expected to feature a wide array of offerings to the likes of a hotel tower for individuals making their way to the complex, various restaurants, as well as a casino venue overseen by Gateway Casinos.

Project Could Launch in 2022

Each of the parties involved offered financial support. Gateway Casinos & Entertainment guarantees 14.7 percent of the funding for both roadworks in the area and intersection improvements, whereas the City provides 27.9 percent of the cost for each of them. The casino developer also brings to the table 29.4 percent of the cost for blasting and grading, a process funded mainly by the City.

The beginning stages included work that would facilitate future construction. This includes optimization of stormwater draining, as well as some work on the intersection that would make it possible for individuals to travel to and fro Kingsway Entertainment District. Back in November 2018, Ward 1 City Councilor Mark Signoretti pointed out extensive spending on the project.

He brought forward two motions aiming to prevent more cash being poured in Kingsway Entertainment District at least until all appeals filed by community members and businesses have been thoroughly examined. Spending taxpayers money without certainty on the project itself was considered an unacceptable act, eventually leading to a project freeze and a deadline extension.

Sudbury Officials Concerned

Ontario Superior Court and the Local Planning Appeal Tribunal have yet to issue their official position on crucial subjects related to the entertainment zone. The original plan for the construction phase suggested that it should welcome its first customers and patrons in June 2019, but as it later became clear, the ongoing legal battle would extend this phase until 2021 or even 2022.

Councilor Geoff McCausland recently raised awareness of the unknown factors surrounding this project making it a progressively uncertain one. Nature could also take its toll down the road, as the project is located in a region known for its seismic activity that has eventually resulted in a fracture in the ground. Estimations at this point are that the money that would eventually be needed for covering legal expenses might surpass the CA$500,000 mark.

As of recently, Tom Fortin, a local businessman and avid opponent of gambling in Sudbury filed pieces of evidence suggesting city officials showed bias when giving their approval of the project in general, as well as on subsequent occasions. Across 1,500 pages of evidence, Mr. Fortin and locals well-acquainted with the field alleged that the bylaws greenlighting in the spring of 2018 was biased. Back then officials approved the construction of a casino complex, parking lot and a convention center.