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By Collin Gallant on June 14, 2017.

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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.

RELATED

By Medicine Hat News on January 3, 2017.

A whirlwind 48 hours has seen padlocks go on — and now come off — the front doors of Casino by Vanshaw at the Medicine Hat Lodge.

News staff at the casino on Tuesday afternoon were told by casino managers that the gaming establishment would reopen on Wednesday, at which time a full statement would be provided.

Casino By Vanshaw Medicine Hat Abandonment

The following statement was posted on the Facebook page of Casino by Vanshaw on the afternoon of Jan. 3:

On January 2, 2017, the Medicine Hat Lodge sought to terminate the Vanshaw Casino’s Lease and locked the casino’s doors. They did so without a Court Order and acted on their own and in our view without legal authority. We responded immediately and on January 3, the Court of Queen’s Bench ordered the Medicine Hat Lodge to restore Vanshaw’s access to the Casino premises.

Vanshaw Casino supports 182 non- profit groups as well as 80 families through employment. We believe that the Medicine Hat Lodge has broken the law by locking us out and we will pursue further remedies. We are also taking steps to move our facility to a more community supportive location. It is my intention to continue to serve our local groups with Casino fund raising opportunities for many years to come. I would like to thank all involved for their patience and support.

We have been serving the community for 24 yrs. and will continue to do the same for at least another 24 yrs.

Kevin VanDerKooy
President
Casino by Vanshaw

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A six-year-old rental dispute between Casino by Vanshaw and the Medicine Hat Lodge has resulted in the landlord locking the doors.

A notice placed on the casino entrance on Monday states that the Lodge had terminated a lease agreement due to a “lack of rent.”

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“We are working diligently to ensure that the casino closure is temporary and will only last a couple of days,” it reads.

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Officials with casino operator Vanshaw Enterprises, were not available for comment.

Court documents obtained by the News state that in October a judge ruled in favour of Lodge owner, Mayfield Investments, stating that 2010 rental agreement between the parties was valid.

Officials with Medicine Hat Lodge did not immediately return phone calls.

This story will be updated with more information as it becomes available.

Editor’s note: If you are an employee affected by this closure, please contact the News at 403-527-1101.