Tuesday, October 07, 2014

The Blue Bonnets racetrack-to-housing saga: a timeline

   The quest to transform the once-glorious Blue Bonnets west end racetrack into housing has moved forward at the speed of a dead nag in spite of years of planning and discussions. Here's a timeline:

Blue Bonnets timeline:
June 4, 1907: Track opens on Decarie.
1943: Harness racing begins.
1988 Quebec provincial government with Agriculture Minister Michel Page guarantees $44 million loan to save the Blue Bonnets race track and its 700 jobs.
Feb. 20 1991: Under Mayor Jean Dore Montreal's housing agency buys the 146-acre (6 million square foot or 43.5 hectare) Blue Bonnets racetrack off of bankrupt Robert Campeau for $46 million. About two-thirds of the space is occupied by the racetrack. The city signs 10 year renewable lease for $3 million per annum with a group of local businessmen led by Andre Marier, called the Quebec Societe de Promotion des Industries de Courses. The province agrees to spend $14.8 to spruce up the track.
   The track had previously been evaluated at $80-$90 million and generated $275 million in annual revenues.
Dec. 1991: It was reported that the city lost $1 million due to the deal over the first few months but Robert Cohen, of the SHDM said that the first year loss in rent was only $400,000. Cohen noted that previous-owner Campeau only usually paid 30 percent of what was due in tax payments on the property. The SHDM was now paying $377,000 pear year in taxes to the city.
1991: Provincial police raid and launch an investigation that led to charges against four minor players who were fined $3,500. The track's reputation is tarnished by what some feel was a minor affair. Harness race drivers Rick Zeron, Mario Baillargeon and Richard Simard spend several years attempting to reverse their bans.
1992: Blue Bonnets reports a profit of $2.7 million on revenues of $209 million.
1993: Casino opens in July, threatening business and the 8,300 direct and indirect jobs supposedly fueled by Blue Bonnets. The track requests a big number of gaming machines but that it rejected by government and the casino. The losses lead to significant belt-tightening. Purses are halved and the third floor grandstand was closed, resulting in $350,000 in electricity and other costs. Staff was reduced by 25 percent. Free meals to workers were suspended. Revenues plummeted to $95 million for 1993 after the track was shut by work stoppages in July in a labour dispute.
1994 Jan 3: The 173-day labour dispute shut-down finally comes to an end.  A Quebec government corporation called SONACC (Societe national du cheval de course) takes over. Blue Bonnets president Andre Marier exits. He is paid $800,000 for his shares, which he acquired for $10 in 1991. He also received dividends of $320,000 before the sale and was given a severance of $483,000. The new corporation also paid off $1 million in unpaid back rent. The track had four vice presidents and a president, all were soon laid off.
    Crowds at the races dwindle. There's space for 15,000 in the crowd but only about 2,000 show up on a good day. Payoffs were down to 76.5 percent from 79.2 percent. The track was expected $185-$190 million in bets but only got to $117 million in 1994, far below its $200 million break-even point.  Its previous worst year was 1975 which saw $190 million. North American tracks saw an average of 20 percent drop but Montreal's decline was 50 percent. Some fans complained that there were too many Quebec-bred horses.  Plans were afoot to increase off-track-betting, include a 135 seat theatre in the Casino.
November 1993: Blue Bonnets sues province for $1.86 million in revenue guarantees made in 1988, a deal signed under then-owner Robert Campeau.
Oct. 1994: Mayoral Pierre Bourque urges part of the land be sold off for housing. The SHDM opposes the suggestion.
1995:  The SHDM renames Blue Bonnets to Hippodrome de Montreal.
July 1995: Longueuil businessman Lucien Remillard attempts to strike a deal with the province to build a new race track on the South Shore. No headway is made.
May 1998: City of Montreal, with the dossier handled by Saulie Zajdel sells the property to two provincial agencies for $35 million ($20 million from province under then-Premier Bouchard's minister Bernard Landry and $15 million from the SPICC provincial agency). Many councillors opposed the deal. Several Bourque councillors quit the party, costing him his majority in council.
  The track threatens to move ot the South Shore, Laval or Le Gardeur. SPICC, run by Landry's millionaire friend Gilles Blondeau, promises $25 million in renovations. Landry shifts horse-racing from Agriculture to his Industry ministry. Landry had previously shifted $13.5 million to the SPICC to cover debts one year earlier.
Jan. 2001: Snowdon City councillor Marvin Rotrand opposes plan to install 1,200 slot machines along with already-existing 200 VLTs in a plan that would give Blue Bonnets 20 percent of revenues.
October 2002: Province ends subsidies to race tracks after putting about $100 million in four tracks since 1995. A proposed massive infusion of gaming machines at Blue Bonnets falls through.
April 2001: Government report by Denis L'Homme claims that the province's race-track industry inflates its revenues and underestimates its costs.
2005: Quebec Finance Minister Michel Audet puts Blue Bonnets and all of the other province-owned courses up for sale. A city study says 2,500 housing units could be built on the site, which could bring in $50 million a year in tax revenues. Some believed that 6,000 units could be possible, if the CP were to sell its adjacent lands.
June 27: Blue Bonnets goes under bankruptcy protection and suspends operations. Track permanently closed October 13, 2009.
2009: Forty-five community groups oppose a plan to add 300 VLTs and televised races at the Blue Bonnets site as a private casino.
2010: Montreal begins kicking tires on an eventual repurchase of the land from Quebec.
July 2011: U2 performs two well-attended concerts at the site.
January 2012: Parking lot used for a shuttle bus services for local hospitals.
March 23, 2012: Quebec gives up Blue Bonnets to the city in a deal which would see half the profits derived from the subsequent sale to be shared between the two. Some decontamination was said to be required.  The deal was announced but never signed. The city put aside $2.6 million for design plans.
Oct. 2012: Mayor Gerald Tremblay announced a five year plan to turn the now-unused site into a new neighbourhood that could accommodate as many as 5,000 to 8,000 units with 20,000 residents. The clubhouse was to be demolished in 2014. A master plan was expected by 2016, land sales to developers were to begin in 2017. Anything left unsold by 2025 would revert to the province.
September 2014: CDN/NDG borough mayor Russell Copeman muses that 3,500 to 5,000 units could be built on the property.
October 2014: Revelations emerged that the city's purchase of the land from the province had never been finalized, so the city does not, in fact, own the property.
--
 My take: Subsidized housing advocates have pushed hard for the construction of a massive number of taxpayer-supported housing units on the site. They cite census numbers that 4,000 residents of Cote des Neiges spend 80 percent of their incomes or more on rent. Yet paying rent with a welfare cheque and doing odd cash jobs is a common practice. Plus, any construction helps the poor, as an influx of new units will pump up the vacancy rate, so the urgency of subsidized housing there (or anywhere else) escapes me. Hopefully something that makes money for the city will be built there.


5 comments:

  1. You overlooked the irregularities which occurred during a 1976 draw of the now-defunct Loto-Perfecta of which winnings were based on horse races at Blue Bonnets.

    See: https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/2523/index.do

    This incident was so successfully swept under the rug that, amazingly enough, the media didn't seem to take much interest in it at the time despite Loto-Perfecta being quietly discontinued afterwards.

    It even took me some persistent Google digging to finally produce the aforementioned link.

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  2. Interesting but I don't fully grasp it. Oznaga's complaint was that the fact that the draw was on TV at 10 pm was proof that they didn't do it at 7 pm. But the station said that maybe they did it at 7 and only showed it at 10 as a "look live." How did he know he had a winning ticket? If I understand correctly his request to get the cash was shot down in court as well?

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  3. Despite the presumed confusion over who was right or wrong in this case, the mere fact that Loto-Perfecta was unceremoniously discontinued is telling.

    I also remember another case of a few years back where a local draw which took place for a sports game which had actually been postponed from its original date. The game was eventually played yet the draw was legally obliged to continue in order to satisfy the number of participants involved.

    Unfortunately, I do not remember the outcome.

    Gambling based on sporting events is fraught with potential game-fixing and bribery. Witness the recent European soccer fiascos.

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  4. Correction/Enquiry:

    I recall a TV news clip several years ago about a draw that was announced for a certain sporting event which was to take place on a specific date.

    Participants--ticket holders--in the draw were required to guess the exact outcome and score of that event in order to win a significant amount of money.

    However, for some reason (possibly due to weather conditions, I don't remember exactly) the event was actually held on a date EARLIER than the official date marked on the participants' tickets.

    Needless to say, this highly irregular circumstance opened the door for ticket holders and presumably other savvy gamblers who, of course, now KNEW precisely what the final score was, thus enabling them to continue placing bets on the event up until the ORIGINAL draw date and thus "legally win".

    Imagine if for some reason a Lotto Max draw was held on Thursday instead of the usual Friday, thus permitting those of us who were paying attention to know the result thus giving us a full day to fill out Lotto Max tickets and then collectively claim the winnings because the OFFICIAL draw date was Friday.

    Perhaps someone reading this will have a better memory of what specific game it was as well as the final outcome regarding who managed to successfully claim the winnings.

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  5. Curious: where's you get that photo of the Blue Bonnets sign?

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