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Home My WebLink AboutCD-9-97 Addendum UNFINISHED BUSINESS THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON DN:THUNDER.BAY REPORT Meeting: General Purpose and Administration Committee File# `PC-),v (= C Date: Monday, April 7, 1997 Res. #G N) A£� 7 i T By-Law Report#: ile Subject: CREATION OF THUNDER BAY LOTTERY CORPORATION Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Addendum to Report CD-9-97 be received; 2. THAT Report CD-9-97 be lifted from the table; and 3. THAT Report CD-9-97 be received for information. 1. BACKGROUND 1 .1 Report CD-9-97 was tabled pending receipt of correspondence from the Ontario Gaming Commission which is attached to the Addendum to Report CD-9-97 as Appendix "A". I 1 .2 Staff were requested to provide information pertaining to revenues generated by the Thunder Bay Lottery Corporation. The following amounts were included in the "President's Annual Report" of the Thunder Bay Lottery. Revenues Generated i 1994 - $200,000 1995 - $135,000 1996 - $ 74,000 I i RFC RE CLE 1301 TH65 PWRE.D ON RECYCLED PAPER ADDENDUM TO REPORT CD-9-97 PAGE 2 1 .3 Since the submission of Report CD-9-97 to the General Purpose and Administration Committee, Staff have been advised that the Thunder Bay Lottery Corporation held its final draw on January 3, 1997 and a copy of an article entitled "Thunder Bay Wins - Loses Fight for Life" which appeared in the Thunder Bay "Marathon" is Attached as Appendix "B" to the Addendum to Report CD-9-97. It is therefore recommended: THAT the Addendum to Report CD-9-97 be received for information. Respectfully ubmitted, Reviewed Lb �Patti arri , A.M.C.T. W. H. Stockwell T n.CaeT Chief Administrative Officer MPK*PLB*Ib 1302 APPENDIX "An Gaming Commission P , Control des Commission jeux 1 1 2nd Floor 28 6tage 1099 Bay St 1099 rue Bay Toronto ON M5S 2B3 Toronto ON M5S 283 � � � �`� � Ontario March 11, 1997 (416)326-8700 (Phone) (416)326-8711 (Fax) Marie P. Knight Municipality of Clarington 40 Temperance Street Bowmanville ON L1C 3A6 Dear Ms. Knight Re: Thunder Bay Lottery Corporation Further to our telephone conversation, I have received your notes detailing my comments on the establishment of a charitable organization similar to Thunder Bay Lottery Corporation. Your report does detail the concerns that I expressed about the feasibility of establishing this type of organization in the Municipality of Clarington. However, I do wish to clarify my comments regarding this matter. The level of competition for lottery dollars in your region is a factor that needs to be taken into consideration in the establishment of such an umbrella organization. However,whether the multi-million dollar raffles that are being conducted in the Metropolitan Toronto region may affect raffle activity in your area is something for you to determine. I wish to clarify your statements regarding the affect of competition. The recent large raffles in the Metropolitan Toronto area cannot be linked directly to the decline in popularity of the raffle lotteries conducted by the Thunder Bay Lottery Corporation. Ms. Marcie Zaffarano, Lottery Licensing Officer, City of Thunder Bay, is best able to discuss the reasons why the Thunder Bay Lottery Corporation ceased. I'm sure she would be happy to provide you with more information on the organization's operation and feasibility. Yours truly P Tim Glutek � Gaming Control Officer r f Operational Policy and Compliance ! cc: Lynne Bertolini,Registrar i A.. .. 06289(09/95) 1303 L �+v n�nrwraa» Da WinS :1 ose s tign to tire N •BY JULIO GOMES very disappointing. But at the has been in� dle a do-or- situation tions ever—$H,5W in 1994—and vendors the same commission as m = THE CHRONICLE-JOURNAL- same time it's bee�a three three-and-a-a `_.-for a long time,Of'.late,only.5,o% praises the efforts of the board to government-rim lotteries- 1 half years of success.'' tickets were being.bought for the come up with innovative ways to in all fairness, this ding = Luck has-finals.' run Hilt 9n While the board of directors weekly draws=far below expec- sell tickets. should never have happened,` ' .Thunder Bay Wins. m will continue to meet,the suspen-" Cations and not enough#o keep it said Colosimo,.one of the found- - -- -The Thunder Bay Community sion of draws likely spells the viable_ "It was ran-by the best fund- ing board members."It's wonder- Lottery Corp.has decided to put end of the lottery,Since its first The Holiday Bonus Draw held raisers,in the city," he-.said:__ful it did.It has been a sucee^asful, future draws on hold.The deci -draw in June 1993, nearly$l.5 . on Jan.3 was the final one.- • "These people put in a great ef-` wonderful way to supplement la sion was revealed to representa- million in- prizes have -been fort and did a first class job,but- -cal charities," - .special ial meeting l Tuesday.. at awarded and dozens of cornmu "Too much to choose_from. the��'re competing against the After Jail.31,`else lottery Corp, m "We won't close our doors," ndty groups have shared in more: Everybody-wants that big pay- government lottery and you can't -v?ill maintain its.post office box than$�°-Q,Otlo• out," said Pimentel. "This was compete against that.°. for u�il and a line for telephone -1 said president Mark Colosimo, `. •- � more a rattle than a lone and it "because there are aMlaimed lottery •messages.Prize cheques will con- "ft's not a big shock, but it's helped�cbmmunity:groups—&5 Colosimo cites.certain regula tinuR#o be deliveeeil. operation, e will be a shell an too bad,"said Yvette Amateur el x- -'as of now acid 93 at one point," tions as putting the lottery at a A list.of outstanding prizes is } :operation, • the Thunder Bay Amateur Eox- Keith Milne of Shelter House disadvantage,such as-having.to , available at the nearly'I60 outlets •"l'm not-happy to make this lag Club. Thunder Bay-saw saw his- rou re- 0 ..kind of announcement, so it' y g p guarantee a.Winner,for.4very 'WbeiieThunderBay.Winstickets S - The community-based Iottery , ceive one of-the largest'alloca- `,draw and not-being able to pay - axe sold, Z ' W - E W U ' O 1J Z F W } - on ZI U ro Z W l7 _U H J � O W . LL - N5 V CD N Ol THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON DN:THUNDEF13" REPORT Meeting: File#' ( � �c-r~ General Purpose and Administration Committee Res. #�.�� -�� Date: Monday, February 3, 1997 By-Law# Report#: CD.�_. _ File #: Subject: CREATION OF THUNDER BAY LOTTERY CORPORATION Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report CD-9-97 be received for information. 1. BACKGROUND 1.1 The following resolution was passed by Council: "THAT the Clerk prepare a report to be submitted to the General Purpose and Administration Committee on the possibility of the Municipality running a lottery for the purpose of raising funds toward the municipal grant process in order to provide monies to be allocated to various charitable organizations within the municipality." 1.2 The Thunder Bay Community Lottery Corporation was cited as an example of such an undertaking and subsequently, Staff delved into the process of its establishment. PAPER REc.�cAE 13 THIS 6 Pn UTED ON RECYCLED PAPER Report CD-9-97 - 2 - February 3, 1997 1 .3 The Thunder Bay Community Corporation is a non-profit corporation whose members are appointees of organizations which operate principally in Thunder Bay for the public good. Members are appointees of charitable groups and non- profit groups which provide public service in the areas of health, social welfare, sports and recreation, arts and heritage, religion and education. 1 .4 The Corporation operates regular lotteries for the benefit of its member organizations which pay an annual membership fee to belong to the Corporation. 1 .5 The role of the City of Thunder Bay in this process was to encourage and facilitate this project and to provide seed funding in the amount of $50,000.00. While there was a loan outstanding from the City of Thunder Bay to the Corporation, the City Treasurer also served as Treasurer of the Lottery Corporation. Once the Lottery Corporation was established and had repaid its loan to the City, however, the City retained no control of, nor any entitlement to benefit from, the operations of the Lottery Corporation, and the Lottery Corporation appointed its own Treasurer. It is important to note that municipalities are NOT eligible for Lottery Licensing. 1 .6 The Thunder Bay Lottery Corporation is now a community-based organization entirely separate from the Corporation of the City of Thunder Bay and the independent member agencies set the agenda, structure and mandate of the Lottery Corporation. The process of the creation of the Thunder Bay Lottery Corporation took 14 months: April, 1992 to June, 1993. 2.0 CORPORATE STRUCTURE 2.1 The Thunder Bay Community Lottery Corporation is incorporated under Section 118 of the Ontario Corporations Act. 1306 Report CD-9-97 - 3 - February 3, 1997 3.0 MEMBERSHIP 3.1 Members are individuals appointed to represent organizations which: (1) qualify independently for a lottery license; (2) operate principally for the general good of the citizens of Thunder Bay; (3) pay an annual membership fee; (4) submit an application form to the City of Thunder Bay's Lottery Licensing Department which must include: - demonstrated need; - stated purpose of funds; - a budget for the project(s) for which funding is requested; - copy of Charter of Constitution - list of current executive officers - statement of purpose, proposed use of lottery funds, description of who benefits from lottery proceeds; and (5) The organization must comply to the terms and conditions imposed by the Province just as though it were applying for a Lottery License on its own. 3.2 There is at present no limitation, other than the above criteria on the number of members which may be accepted into the Corporation. The Corporation is presently comprised of approximately 95 member organizations. 3.3 The annual financial statements of the member organization must be submitted and the use of the grant received by the organization from the Lottery Corporation is subject to review and verification by the Corporation utilizing the external auditors as necessary. 1307 Report CD-9-97 - 4 - February 3, 1997 4.0 COMMENTS FROM THE ONTARIO GAMING CONTROL COMMISSION 4.1 When contacted, the Ontario Gaming Control Commission made the following comments: (1) The establishment of the Thunder Bay Lottery Corporation is unique and the only one of its kind in Ontario. (2) The success of the Thunder Bay Lottery is based on the fact that Thunder Bay is a major city surrounded by unorganized territory and does not experience "competition" for licensing revenues from other municipalities or the Province. In the Region of Durham, an organization has the option of applying to eight municipalities for a lottery license or to the Gaming Control Commission located in Toronto. (3) Since the creation of the "Million Dollar" Lotteries, i.e., Princess Margaret, Sick Kids Hospital, etc. the popularity of the Thunder Bay Lottery Corporation has declined and the Gaming Control Commission's comment was that for all the above reasons ...... "the establishment of a Lottery Corporation is not a feasible alternative for Clarington". RECOMMENDATION The Treasury Department's comments were that, in these times of restraint and financial cutbacks, the municipality would not encourage the creation of an organization which would require a $50,000.00 start-up loan from the Municipality. All of the documentation pertaining to the events leading to and the creation of the Thunder Bay Lottery Corporation is available for review in the Clerk's Department. Report CD-9-97 - 5 - February 3, 1997 It is therefore recommended: THAT Report CD-9-97 be received for information. Respectfully submitted, Reviewed by, 4= 61et , A.M.C.T. W. H. Stockwell Chief Administrative Officer MPK*PLB*lb 1 1309