Casino owner rolls the dice on land purchase
Paula Simons
The Edmonton Journal
Cuddle up, little ones. Auntie Paula wants to tell you a story.
Once upon a time, trains ran right through downtown Edmonton.
It's true. Back when Auntie Paula was a little girl, CN had rail yards north of 104th Avenue. Then CN moved out of the downtown. The land where the trains once ran was sold for redevelopment. Some of it became the site of MacEwan College. Some became the Oliver Square shopping district.
But another parcel, between 104th Street and 101st Street, was zoned for high-density residential development. So many people were expected to live in the area, the city set aside 0.48 hectares of land -- when Auntie Paula was young, we called that 1.2 acres -- to be a nice green park for the people in those condos.
AREA CHANGED
But the development never happened. Instead, a casino was built on the land. Thousands of people drove to the Baccarat to play, drink and gamble. The promised park remained an empty lot.
Meanwhile, the area began to change. People turned the old warehouses along 104th Street into trendy lofts. Developers began buying up the industrial lands north of the old rail yards and rezoning it for residential use.
Then one day, the people who owned the casino decided they wanted to build a much bigger, better facility, farther west on their land.
There were just two problems. First, the people living in the area didn't want a bigger, better, 24-hour nightclub in their neighbourhood. Second, the casino wanted to build not just on land it owned, but right on the land that was reserved to be a city park.
But city council said no. Two-and-a-half years ago, in a 7-6 vote, councillors voted against the casino's proposal.
So why is Auntie Paula telling you this old story today?
Because that "park that never was" is back in the news.
Gateway Casinos, the British Columbia-based company that owns the Baccarat, wants to buy the designated half-hectare parkland for $1.95 million.
PUBLIC HEARING
It already struck a deal with the city's asset management and public works department.
The proposal goes to council's public works committee today. A public hearing at city council follows Wednesday.
Gateway hasn't unveiled its new casino proposal yet, but has one in the works. It's clear the company wants to eliminate one stumbling block that tripped up its last application. If it owns the designated parkland, city council will have one less reason to turn down any future casino plan.
Why should the city sell the land at all? There are a couple of decent reasons.
The parcel isn't in the best location for a park. It never was. It's no natural beauty spot. It's not particularly close to either the 104th Street warehouse district or the Central McDougall community to the north.
And if the city moved ahead with its ambitious long-term plans to run the LRT down 105th Avenue, the land would back onto an LRT station. Sell the land now, argue the folks in the department of asset management, and the city could use the money to buy parkland in a better location.
But Auntie Paula isn't convinced by those arguments. First, there's the issue of birds in the hand versus birds in the bush. While $1.95 million might sound like a lot to you and me, it wouldn't be enough to buy a replacement piece of land of comparable size in the downtown core -- not at today's prices. Sell this parcel now and who knows when or where or whether we'd ever get a replacement park.
The need for parkland in that area now is more pressing than in 2004. Just two weeks ago, city council approved Carma's Aurora, City of Light development, which sits directly north of the park property. Construction begins in spring on a complex of towers and townhouses that will be home to some 3,000 people. While the development includes its own green space, a park would be a fine amenity, for the Aurora residents and future neighbours.
Then there's the more subtle question of political leverage. Whatever proposal Gateway brings back to council is bound to be controversial. If we must have a massive new casino, it's council's job to do everything within its legal powers to ensure we get the best one possible -- the one with the finest design, the least surface parking and the best location. Gateway owns a five-hectare parcel and the casino ought to be situated so its least disruptive to nearby residential neighbourhoods.
If the city sells the park property now, before seeing the casino plans, it will have sold off one of its best bargaining chips, giving a strategic advantage to Gateway. That's no way to negotiate.
At the very least, council should be wary of selling the land until Gateway puts all its cards on the table and shows us what it wants to build and where.
The economics of downtown Edmonton real estate have changed remarkably in the last three years.
We have an opportunity to plan a magnificent downtown, one that balances residential, recreational and commercial interests. Let's not rush to sell off public parkland for a casino and bar -- not until we know how we want the story to end.
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© The Edmonton Journal 2006