The Return of Harry Balsack
2004-11-15 22:37:35 UTC
Casino Considerations
The day before deadline, David Reilley, a public relations contractor, calls
to say Asfar is available for an interview
By ANDREW MacLEOD
John Asfar, the president and CEO of the locally based Traveller's Inn chain
of hotels, wants to own a casino so badly that he's promising to put 35
percent of his share of the profits back into the city if his wish is
granted. Compared with the 10 percent the British Columbia Lottery
Corporation usually requires casino operators to hand over to local
governments, Asfar's promise looks extremely generous. And just as there's
been much talk of a possible casino in Victoria, Asfar has been at the
forefront of the discussion thus far as the one to bring it to life.
There's just one problem, according to some creditors.
"Good luck trying to collect the money unless you get it up front from him,"
says Michael Murrell, a collection manager with Credit Management Corp. in
Vancouver. In seven-and-a-half years of dealing with Asfar on behalf of
several clients, Murrell has spoken with him just twice on the phone. "He
presents as a well-organized businessman. But I still don't see a cheque."
Even going to court, Murrell has had mixed success.
"We've found that Mr. Asfar is essentially judgement proof," he says. Each
Traveller's Inn location, and there are 11 of them plus three resorts, is
registered as a different business, he says, so it can be tough for
creditors to figure out whom to sue. "Good luck figuring out who is
responsible for what and where the money is."
Asfar, for his part, says he's never heard of Murrell.
According to a website promoting the casino proposal, Asfar started building
the local chain in 1997 with money he made selling 10 apartment buildings he
owned, for $18.2 million. Since 2003 he has offered franchises for sale, the
site says, and he has a goal of having 500 hotels carry the Traveller's Inn
name by 2010. No franchises have yet been granted.
In March, 2000, the small claims court in Vancouver ordered five companies,
including Asfar's Traveller's Inn on Douglas Ltd., to pay $13,426 to Pacific
Textiles Ltd., a linens company. With that order in hand, Murrell was able
to collect about 80 percent of what was owed.
In another dispute, in 2003, the Supreme Court in Vancouver ruled that
Asfar, doing business as Traveller's Inn, owed $21,965 to Teldon
International Inc., a publisher of magazines and calendars. With that ruling
the creditor had to take the step of seizing property from Asfar. In
October, 2003, court bailiff Chad Becker ordered the sale of shares
registered to Asfar in Skyline Estates Ltd. and 437746 B.C. Ltd.. In the
end, says Murrell, about 80 percent of the claim was paid.
And there are others. A look at the provincial court registry over the past
few years shows companies that have filed claims against Asfar or one or
more of his companies include the accounting firm Deloitte & Touche, the
American Automobile Association, Colonial Countertops Ltd., Tile Town Ltd.,
Matrix Marble Corporation, Architectural Windows & Doors Inc., and Coast
Wholesale Appliances Ltd..
It's unusual, says Murrell, speaking about his own clients, for one debtor
to owe so much to so many different creditors. "The impression I get in my
dealings so far is not many people get paid . . . My question would be,
'Should the casino go ahead, will it be run in the same manner as the
Traveller's Inn?'"
Asfar, whom more than one person calls "elusive," was difficult to reach for
comment. After receiving a number of questions by e-mail, he replied, "If
Monday Magazine's editors do not write a balanced article and decide to
smear my name or my companies or [Vancouver Island Entertainment Inc.]'s
$100,000,000 rezoning application with a [sic] broad 'one off statements' of
any kind I will instruct my lawyers at Devlin & Jensen in Vancouver to
immediately file a writ in court within a week after you publish your
article."
He continued, "This damages law suite [sic] will not be a $10,000 small
claims suit, it will be in the millions just like the $12,000,000 law suite
[sic] that my lawyers have filed against RG Properties for breach of
contract on the naming rights of the arena after back room dealings occurred
after the fact with a 'John Doe' at the City of Victoria."
After Traveller's Inn Hotels Ltd. filed the naming-rights case in B.C.
Supreme Court in July, Monday revealed that "John Doe" is none other than
Victoria mayor Alan Lowe.
The day before deadline, David Reilley, a public relations contractor, calls
to say Asfar is available for an interview. "I think with my assistance
it'll be a little more orthodox," he says. Later that day the pair arrives
at the Monday office. Asfar, who is 38 years old, has his hair slicked back,
and a cross on a necklace is visible through his unbuttoned shirt collar.
"I'm a big, big developer," he says, commenting on the allegations made by
past creditors. "I've been doing this for 20 years. You're going to have the
odd situation that does pop up."
In 20 years doing business in Victoria, he says, he has overseen $25 million
worth of renovations on some 42 major projects, including the Traveller's
Inn chain he's built, his resorts, the apartment buildings he's since sold,
and his father's apartment buildings. He has signed "thousands" of
contracts, he says, and there have been disputes over only a fraction of a
percentage of them.
"There are going to be disputes," he says. "I don't claim to be perfect in
everything I do . . . This is big business. You try your best to make
everybody happy, and you hope they're going to make you happy, but disputes
do arise and you hope to resolve them as quickly as possible."
He adds, "I've never done anything criminal. Those people I've had disputes
with, I've settled with every one of them."
Betting on Victoria
Asfar's casino, which the promotional website is calling the Victorian
Imperial Princess, is far from a sure thing. Much depends on the city
council, the BCLC and any plans the Great Canadian Casinos Inc., which owns
the View Royal casino, may have.
It's clear that both mayor Lowe, and the city council, would like to have a
casino downtown. "The City of Victoria is on record as saying we'd be open
to having one casino in the city," says Lowe. A 1999 decision to ban slot
machines downtown did nothing but drive the Great Canadian Casino, which
used to be located at Douglas and Tolmie, to View Royal. Victorians still go
there to gamble, but the location cuts the city out of the profits.
In May, 2003, the council set guidelines that included keeping any future
casino in particular parts of downtown, the tourist area of James Bay, or
somewhere in the corridor between Douglas and Blanshard Streets. Also, the
guidelines say, the casino should be part of a "multi-use structure" that
might include a hotel, convention centre, restaurants, light industry or
recreation facilities. Any property where a casino is proposed will have to
go through a rezoning process, including a public hearing.
On its surface, says city councillor Rob Fleming, Asfar's proposal sounds
like a pretty good fit for the city.
The proposal calls for converting a string of properties on Queens Avenue
between Douglas and Blanshard Streets-including the building currently
occupied by Now Furniture & Mattresses-into a casino and hotel complex.
Asfar made the pitch to the city council in September, and has been
promoting the idea with radio ads. According to the casino proposal's
website, the team of professionals and consultants working on the project
include Grant Thornton accountants, Praxis Archtitects, MBD Consulting, Bunt
and Associates, and City Spaces.
"He certainly does have a lot of expertise and consultants on his payroll,"
observes Fleming, "so he's doing everything he can to present his plan
carefully and professionally."
Fleming adds that he's not a big fan of gambling, but would like to see a
significant portion of revenues returned to the community to use for
"purposes that are good," which would again give Asfar an advantage.
"We meet all the guidelines," says Asfar. "We feel we have the best project
and we're offering a lot back to the city."
At the centre of that offer is the promise to put 35 percent of his
company's share of profits back into the city. That doesn't mean 35 percent
of the casino's total profit, though. Rather, would come out of the 28
percent left after the BCLC takes its cut.
Of the amount Asfar plans to give back to Victoria, 15 percent would be
donated towards affordable housing, shelters, sports, arts and
entertainment. A board of nine would direct the spending.
Another 10 percent would be invested into tourist attractions, either
existing ones or new ones. Asfar says he would have, for instance, stepped
in to save the Crystal Garden. A further 10 percent of the 35 percent would
be invested in the local film industry. The tourist attractions and film
industry support would be investments, he says, but they wouldn't be made
with the expectation of making money. "The casino revenues are going to be
put into this tax write-off for Victoria," he says.
"These are the good things that need to be highlighted," he says. "If they
aren't highlighted, Great Canadian wins by default." He adds, "Great
Canadian is not going to offer 35 percent to Greater Victoria of their
profits. They can't."
Representatives from Great Canadian did not return calls.
Cards on the table
So who would Lowe like to work with on a new casino? "It's not an issue that
we have any control over," Lowe says, agreeing that it's "convenient" he
doesn't have to step into that question. "We shouldn't be choosing one
operator over another."
In April, 2003, Lowe signed a letter that's posted on the casino website. It
reads in part, "We recognize that you will spend a great deal of time and
effort in trying to arrange for the development and investment into the
Casino Gaming Facility and the City of Victoria will work with you in good
faith to assist you in relocating your casino to Victoria, British
Columbia."
Lowe says he did sign that letter, but it was never meant to be an
endorsement of one application over another. He's asked for the letter to be
removed from the website, he says, but so far it is still there. The
question of relocating a casino arises because of the provincial
government's promise to stop the expansion of gambling, meaning that opening
a new casino here would mean one would have to close somewhere else.
According to Greg Walker, a spokesperson for the BCLC, Asfar does not own a
casino elsewhere, though Asfar has in the past said he's bought a licence
from Billy Barker Casino in Quesnel. Walker says there is no such thing as a
"licence" and there is "no commodity to buy, sell or trade." At least, he
adds, "Not without our permission."
Rather than issue licences, BCLC enters contracts, Walker says, and "[Asfar]
does not have that." There is no contractual relationship with Vancouver
Island Entertainment Inc., the company Asfar has set up to run a casino, he
adds. What about Asfar's other companies? "Not to my knowledge. To my
knowledge we have no business relationship with any of the companies you
referred to."
Asfar insists he has an option agreement with the owner of the casino in
Quesnel, and "millions have been spent so far."
He is following the steps set out by the city and the BCLC, he says, and is
clearly impatient for their approval. Asked if he thinks he'll be treated
fairly in the process, he pauses for a long time, considering his words.
"It's a matter of the process being vetted," he says. "The process on the
surface, if the rules are followed . . . by the City of Victoria to the
letter, the process is 100 percent fair. However, my comments would be that,
that in mind, Great Canadian and BCLC are partners in all of the seven or
eight casinos they operate together. They sit at the same desk in the same
room."
Lowe is well aware of Asfar's public campaign, but says it may not help.
"They're spending lots of money all right," he says. "It doesn't matter how
much advertising one does, it's going to make no difference for the city of
Victoria."
In the end, it's up to the BCLC to put forward a proposal, Lowe says, before
city council can get on with the business of re-zoning a site and holding a
public consultation. "I would have hoped they'd made a decision already, but
we're still waiting."
As for Asfar's chances, Lowe says, "Obviously they're going to take into
consideration what happens with View Royal. I doubt they're going to give a
licence to someone else when it would kill another service provider."
In an e-mail, Asfar argues that a second casino in the region, run by
someone other than Great Canadian, would introduce competition to the market
and force everyone to serve players and the community better.
The BCLC's Walker isn't showing any cards and there's no indication whether
they want to let Asfar into the game. "We have to make a decision that a
second casino is right for that marketplace," he says. "In this
circumstance, at this time, we have no plans to make such a decision, no
plans to make any changes to that regional marketplace."
The BCLC recently released a market study done by the accounting firm KPMG,
that looked at three options for the southern island. It concluded that
having a single full-service casino downtown (and closing the View Royal
casino) would generate more revenue than either the status quo or running
two casinos in the region. The report does not indicate how the BCLC plans
to move forward.
The BCLC split the $25,000 cost of the study with Great Canadian, which runs
the View Royal casino as well as five others in the province, and four in
Washington State. Great Canadian's involvement in the study seems a clear
indication it would also like to be involved if there's going to be a casino
downtown, though the company is yet to propose anything concrete.
It appears the BCLC and Great Canadian want to strip the western communities
of their casino and "continue their monopoly in Victoria and the Island,"
Asfar says in an e-mail. That would unfairly take an "anchor tenant" out of
the area, remove the incentive to develop businesses like a hotel or
convention centre that could be related to the casino and cut the revenue
flow to those municipalities.
"The KPMG report shows clearly that two casinos can be supported in Greater
Victoria based on the population base and tourists," he adds. He can have
his casino up and running within three months, he says, while another
company, to build a casino on a vacant piece of land downtown, would take at
least three years by the time they got through planning, negotiating with
the city and building. Meanwhile, he says, the industry and the city are
losing the $35 million the report says is being "left on the table each
year" by having the casino off the tourist track.
Whatever proposal the BCLC comes forward with, says councillor Fleming,
"It'll come down to a land use issue. It'll be about, 'is it compatible with
other zoning uses in the area'."
However, if the BCLC backs Asfar to bring a proposal forward, say some
creditors, the city should also consider whether he can be trusted. And
trust, says Brian Kliman, the owner of Colonial Countertops Ltd., is
something Asfar hasn't earned.
His company had done over $200,000 worth of work on Asfar projects, he says,
but he had to take Skyline Estates Ltd. and Asfar to court to get paid the
last $14,000 or so he was owed. The cheque came through pretty quickly, he
says, after his lawyer filed a motion asking for disclosure of Asfar's
finances.
Kliman says Asfar's refusal to pay seems to be part of a pattern. "That's
what I've heard around town. When he doesn't need you anymore he doesn't pay
you."
After working together with no problems to speak of day-to-day, he says, he
ended up feeling betrayed by Asfar. "I will never do work for him again.
Never. Even if he's the last customer on earth. Why would you want to?"
Kliman adds, "Sometimes legitimately you can have disputes." That's normal
in the course of business, he says. "When you have that many there's
something wrong, that's all I can say."
As for a casino in Victoria, he says, "I don't think it's a bad idea. Is he
the right guy for it? I don't know. Is he going to screw anyone when he
builds the building? Probably . . . I don't know if you can trust the guy .
. . Would I give him credit again? No. Would I trust him? No. I don't
believe what he says, but that's my opinion." M
Is the city taking a gamble â šon a new casino proposal, â šor is it a sure
thing?
The day before deadline, David Reilley, a public relations contractor, calls
to say Asfar is available for an interview
By ANDREW MacLEOD
John Asfar, the president and CEO of the locally based Traveller's Inn chain
of hotels, wants to own a casino so badly that he's promising to put 35
percent of his share of the profits back into the city if his wish is
granted. Compared with the 10 percent the British Columbia Lottery
Corporation usually requires casino operators to hand over to local
governments, Asfar's promise looks extremely generous. And just as there's
been much talk of a possible casino in Victoria, Asfar has been at the
forefront of the discussion thus far as the one to bring it to life.
There's just one problem, according to some creditors.
"Good luck trying to collect the money unless you get it up front from him,"
says Michael Murrell, a collection manager with Credit Management Corp. in
Vancouver. In seven-and-a-half years of dealing with Asfar on behalf of
several clients, Murrell has spoken with him just twice on the phone. "He
presents as a well-organized businessman. But I still don't see a cheque."
Even going to court, Murrell has had mixed success.
"We've found that Mr. Asfar is essentially judgement proof," he says. Each
Traveller's Inn location, and there are 11 of them plus three resorts, is
registered as a different business, he says, so it can be tough for
creditors to figure out whom to sue. "Good luck figuring out who is
responsible for what and where the money is."
Asfar, for his part, says he's never heard of Murrell.
According to a website promoting the casino proposal, Asfar started building
the local chain in 1997 with money he made selling 10 apartment buildings he
owned, for $18.2 million. Since 2003 he has offered franchises for sale, the
site says, and he has a goal of having 500 hotels carry the Traveller's Inn
name by 2010. No franchises have yet been granted.
In March, 2000, the small claims court in Vancouver ordered five companies,
including Asfar's Traveller's Inn on Douglas Ltd., to pay $13,426 to Pacific
Textiles Ltd., a linens company. With that order in hand, Murrell was able
to collect about 80 percent of what was owed.
In another dispute, in 2003, the Supreme Court in Vancouver ruled that
Asfar, doing business as Traveller's Inn, owed $21,965 to Teldon
International Inc., a publisher of magazines and calendars. With that ruling
the creditor had to take the step of seizing property from Asfar. In
October, 2003, court bailiff Chad Becker ordered the sale of shares
registered to Asfar in Skyline Estates Ltd. and 437746 B.C. Ltd.. In the
end, says Murrell, about 80 percent of the claim was paid.
And there are others. A look at the provincial court registry over the past
few years shows companies that have filed claims against Asfar or one or
more of his companies include the accounting firm Deloitte & Touche, the
American Automobile Association, Colonial Countertops Ltd., Tile Town Ltd.,
Matrix Marble Corporation, Architectural Windows & Doors Inc., and Coast
Wholesale Appliances Ltd..
It's unusual, says Murrell, speaking about his own clients, for one debtor
to owe so much to so many different creditors. "The impression I get in my
dealings so far is not many people get paid . . . My question would be,
'Should the casino go ahead, will it be run in the same manner as the
Traveller's Inn?'"
Asfar, whom more than one person calls "elusive," was difficult to reach for
comment. After receiving a number of questions by e-mail, he replied, "If
Monday Magazine's editors do not write a balanced article and decide to
smear my name or my companies or [Vancouver Island Entertainment Inc.]'s
$100,000,000 rezoning application with a [sic] broad 'one off statements' of
any kind I will instruct my lawyers at Devlin & Jensen in Vancouver to
immediately file a writ in court within a week after you publish your
article."
He continued, "This damages law suite [sic] will not be a $10,000 small
claims suit, it will be in the millions just like the $12,000,000 law suite
[sic] that my lawyers have filed against RG Properties for breach of
contract on the naming rights of the arena after back room dealings occurred
after the fact with a 'John Doe' at the City of Victoria."
After Traveller's Inn Hotels Ltd. filed the naming-rights case in B.C.
Supreme Court in July, Monday revealed that "John Doe" is none other than
Victoria mayor Alan Lowe.
The day before deadline, David Reilley, a public relations contractor, calls
to say Asfar is available for an interview. "I think with my assistance
it'll be a little more orthodox," he says. Later that day the pair arrives
at the Monday office. Asfar, who is 38 years old, has his hair slicked back,
and a cross on a necklace is visible through his unbuttoned shirt collar.
"I'm a big, big developer," he says, commenting on the allegations made by
past creditors. "I've been doing this for 20 years. You're going to have the
odd situation that does pop up."
In 20 years doing business in Victoria, he says, he has overseen $25 million
worth of renovations on some 42 major projects, including the Traveller's
Inn chain he's built, his resorts, the apartment buildings he's since sold,
and his father's apartment buildings. He has signed "thousands" of
contracts, he says, and there have been disputes over only a fraction of a
percentage of them.
"There are going to be disputes," he says. "I don't claim to be perfect in
everything I do . . . This is big business. You try your best to make
everybody happy, and you hope they're going to make you happy, but disputes
do arise and you hope to resolve them as quickly as possible."
He adds, "I've never done anything criminal. Those people I've had disputes
with, I've settled with every one of them."
Betting on Victoria
Asfar's casino, which the promotional website is calling the Victorian
Imperial Princess, is far from a sure thing. Much depends on the city
council, the BCLC and any plans the Great Canadian Casinos Inc., which owns
the View Royal casino, may have.
It's clear that both mayor Lowe, and the city council, would like to have a
casino downtown. "The City of Victoria is on record as saying we'd be open
to having one casino in the city," says Lowe. A 1999 decision to ban slot
machines downtown did nothing but drive the Great Canadian Casino, which
used to be located at Douglas and Tolmie, to View Royal. Victorians still go
there to gamble, but the location cuts the city out of the profits.
In May, 2003, the council set guidelines that included keeping any future
casino in particular parts of downtown, the tourist area of James Bay, or
somewhere in the corridor between Douglas and Blanshard Streets. Also, the
guidelines say, the casino should be part of a "multi-use structure" that
might include a hotel, convention centre, restaurants, light industry or
recreation facilities. Any property where a casino is proposed will have to
go through a rezoning process, including a public hearing.
On its surface, says city councillor Rob Fleming, Asfar's proposal sounds
like a pretty good fit for the city.
The proposal calls for converting a string of properties on Queens Avenue
between Douglas and Blanshard Streets-including the building currently
occupied by Now Furniture & Mattresses-into a casino and hotel complex.
Asfar made the pitch to the city council in September, and has been
promoting the idea with radio ads. According to the casino proposal's
website, the team of professionals and consultants working on the project
include Grant Thornton accountants, Praxis Archtitects, MBD Consulting, Bunt
and Associates, and City Spaces.
"He certainly does have a lot of expertise and consultants on his payroll,"
observes Fleming, "so he's doing everything he can to present his plan
carefully and professionally."
Fleming adds that he's not a big fan of gambling, but would like to see a
significant portion of revenues returned to the community to use for
"purposes that are good," which would again give Asfar an advantage.
"We meet all the guidelines," says Asfar. "We feel we have the best project
and we're offering a lot back to the city."
At the centre of that offer is the promise to put 35 percent of his
company's share of profits back into the city. That doesn't mean 35 percent
of the casino's total profit, though. Rather, would come out of the 28
percent left after the BCLC takes its cut.
Of the amount Asfar plans to give back to Victoria, 15 percent would be
donated towards affordable housing, shelters, sports, arts and
entertainment. A board of nine would direct the spending.
Another 10 percent would be invested into tourist attractions, either
existing ones or new ones. Asfar says he would have, for instance, stepped
in to save the Crystal Garden. A further 10 percent of the 35 percent would
be invested in the local film industry. The tourist attractions and film
industry support would be investments, he says, but they wouldn't be made
with the expectation of making money. "The casino revenues are going to be
put into this tax write-off for Victoria," he says.
"These are the good things that need to be highlighted," he says. "If they
aren't highlighted, Great Canadian wins by default." He adds, "Great
Canadian is not going to offer 35 percent to Greater Victoria of their
profits. They can't."
Representatives from Great Canadian did not return calls.
Cards on the table
So who would Lowe like to work with on a new casino? "It's not an issue that
we have any control over," Lowe says, agreeing that it's "convenient" he
doesn't have to step into that question. "We shouldn't be choosing one
operator over another."
In April, 2003, Lowe signed a letter that's posted on the casino website. It
reads in part, "We recognize that you will spend a great deal of time and
effort in trying to arrange for the development and investment into the
Casino Gaming Facility and the City of Victoria will work with you in good
faith to assist you in relocating your casino to Victoria, British
Columbia."
Lowe says he did sign that letter, but it was never meant to be an
endorsement of one application over another. He's asked for the letter to be
removed from the website, he says, but so far it is still there. The
question of relocating a casino arises because of the provincial
government's promise to stop the expansion of gambling, meaning that opening
a new casino here would mean one would have to close somewhere else.
According to Greg Walker, a spokesperson for the BCLC, Asfar does not own a
casino elsewhere, though Asfar has in the past said he's bought a licence
from Billy Barker Casino in Quesnel. Walker says there is no such thing as a
"licence" and there is "no commodity to buy, sell or trade." At least, he
adds, "Not without our permission."
Rather than issue licences, BCLC enters contracts, Walker says, and "[Asfar]
does not have that." There is no contractual relationship with Vancouver
Island Entertainment Inc., the company Asfar has set up to run a casino, he
adds. What about Asfar's other companies? "Not to my knowledge. To my
knowledge we have no business relationship with any of the companies you
referred to."
Asfar insists he has an option agreement with the owner of the casino in
Quesnel, and "millions have been spent so far."
He is following the steps set out by the city and the BCLC, he says, and is
clearly impatient for their approval. Asked if he thinks he'll be treated
fairly in the process, he pauses for a long time, considering his words.
"It's a matter of the process being vetted," he says. "The process on the
surface, if the rules are followed . . . by the City of Victoria to the
letter, the process is 100 percent fair. However, my comments would be that,
that in mind, Great Canadian and BCLC are partners in all of the seven or
eight casinos they operate together. They sit at the same desk in the same
room."
Lowe is well aware of Asfar's public campaign, but says it may not help.
"They're spending lots of money all right," he says. "It doesn't matter how
much advertising one does, it's going to make no difference for the city of
Victoria."
In the end, it's up to the BCLC to put forward a proposal, Lowe says, before
city council can get on with the business of re-zoning a site and holding a
public consultation. "I would have hoped they'd made a decision already, but
we're still waiting."
As for Asfar's chances, Lowe says, "Obviously they're going to take into
consideration what happens with View Royal. I doubt they're going to give a
licence to someone else when it would kill another service provider."
In an e-mail, Asfar argues that a second casino in the region, run by
someone other than Great Canadian, would introduce competition to the market
and force everyone to serve players and the community better.
The BCLC's Walker isn't showing any cards and there's no indication whether
they want to let Asfar into the game. "We have to make a decision that a
second casino is right for that marketplace," he says. "In this
circumstance, at this time, we have no plans to make such a decision, no
plans to make any changes to that regional marketplace."
The BCLC recently released a market study done by the accounting firm KPMG,
that looked at three options for the southern island. It concluded that
having a single full-service casino downtown (and closing the View Royal
casino) would generate more revenue than either the status quo or running
two casinos in the region. The report does not indicate how the BCLC plans
to move forward.
The BCLC split the $25,000 cost of the study with Great Canadian, which runs
the View Royal casino as well as five others in the province, and four in
Washington State. Great Canadian's involvement in the study seems a clear
indication it would also like to be involved if there's going to be a casino
downtown, though the company is yet to propose anything concrete.
It appears the BCLC and Great Canadian want to strip the western communities
of their casino and "continue their monopoly in Victoria and the Island,"
Asfar says in an e-mail. That would unfairly take an "anchor tenant" out of
the area, remove the incentive to develop businesses like a hotel or
convention centre that could be related to the casino and cut the revenue
flow to those municipalities.
"The KPMG report shows clearly that two casinos can be supported in Greater
Victoria based on the population base and tourists," he adds. He can have
his casino up and running within three months, he says, while another
company, to build a casino on a vacant piece of land downtown, would take at
least three years by the time they got through planning, negotiating with
the city and building. Meanwhile, he says, the industry and the city are
losing the $35 million the report says is being "left on the table each
year" by having the casino off the tourist track.
Whatever proposal the BCLC comes forward with, says councillor Fleming,
"It'll come down to a land use issue. It'll be about, 'is it compatible with
other zoning uses in the area'."
However, if the BCLC backs Asfar to bring a proposal forward, say some
creditors, the city should also consider whether he can be trusted. And
trust, says Brian Kliman, the owner of Colonial Countertops Ltd., is
something Asfar hasn't earned.
His company had done over $200,000 worth of work on Asfar projects, he says,
but he had to take Skyline Estates Ltd. and Asfar to court to get paid the
last $14,000 or so he was owed. The cheque came through pretty quickly, he
says, after his lawyer filed a motion asking for disclosure of Asfar's
finances.
Kliman says Asfar's refusal to pay seems to be part of a pattern. "That's
what I've heard around town. When he doesn't need you anymore he doesn't pay
you."
After working together with no problems to speak of day-to-day, he says, he
ended up feeling betrayed by Asfar. "I will never do work for him again.
Never. Even if he's the last customer on earth. Why would you want to?"
Kliman adds, "Sometimes legitimately you can have disputes." That's normal
in the course of business, he says. "When you have that many there's
something wrong, that's all I can say."
As for a casino in Victoria, he says, "I don't think it's a bad idea. Is he
the right guy for it? I don't know. Is he going to screw anyone when he
builds the building? Probably . . . I don't know if you can trust the guy .
. . Would I give him credit again? No. Would I trust him? No. I don't
believe what he says, but that's my opinion." M
Is the city taking a gamble â šon a new casino proposal, â šor is it a sure
thing?