How Sweet It Is

 

People of a certain age will remember Jackie Gleason and one of his famous taglines: "How sweet it is." Delivered with an insouciance only Gleason was capable of,  it was a line that was applicable to many of his skits. Unfortunately, applying it to a real-life situation in Ontario means it must be spoken only in a bitter and cynical way, unless you are part of the Austrian group developing the Therme Spa on Toronto's waterfront. 

The Doug Ford government recently released some of the details of its 95-year-lease with the company, but first, just a couple of details about group:

Therme Canada, the latest deep-pocketed firm with designs on a chunk of Toronto’s waterfront, is a far more opaque organization, privately held, with no publicly disclosed source of financing besides the entry fees and ancillary revenues generated by its spas.

The company, however, has deep local connections, overseen by executives who have worked in the office of Premier Doug Ford as well as lobbyists such as StrategyCorp’s John Perenack and Leslie Noble, and Amir Remtulla, Ford’s former EA from his days at City Hall. Its local architect is Diamond Schmitt, whose renderings have stirred controversy since they were made public in the summer.

Mmm. friends of Doug Ford do have a history of prospering. In any event, the details of the deal that we are thus far permitted to know seem to suggest a very sweet deal at the expense of the usual suspects: taxpaying citizens:

The lease shows Ontario has promised 1,600 dedicated parking spaces for Therme, and the government says it is proposing a total of 2,500 parking spaces for Ontario Place. Some of Therme’s parking spaces are set to be shared with Live Nation during concerts.

Bear in mind that these spaces care being paid by the taxpayer, but the pain doesn't necessarily stop there:

If the province fails to meet its parking obligations before the spa resort opens, or 2030, whichever comes first, the lease compels taxpayers to give Therme $5 per spot per day for a portion of the unbuilt spots, which Lindsay said could total $2.2 million per year.

Depending upon whether those parking spaces are underground, the public could be handing over hundreds of millions of dollars for their construction. This is in addition to Infrastructure Ontario's Michael Lindsay's admission "that provincial taxpayers have so far spent “hundreds of millions” of dollars on site servicing to get all of Ontario Place ready for redevelopment."

But, not to worry, the government insists, because the economic benefits will be astronomical. 

Benefits of the redevelopment plan, Infrastructure Ontario said in briefing documents, “include, at a minimum, nearly $2 billion in estimated revenue contributions from Therme Canada to the province over the duration of the lease and $700 million in upfront capital investments from Therme Canada.

However, like many of the claims by the Ford coterie, these revenue projections are based, to put it politely, on wildly enthusiastic (i.e., wholly unrealistic) expectations. 

The province says it expects the revitalized Ontario Place to attract more annual visitors than the CN Tower and Empire State Building combined, a estimation that some experts are questioning. 

On Thursday, the province revealed it expects 6 million visitors annually at the site, which includes the waterpark and spa being developed by Therme Canada, a concert venue, the new science centre, a new marina and public park land. The estimation was made public when the province revealed its lease with Therme. 

By comparison, the CN Tower sees about 1.8 million visitors a year and the Empire State Building 2.5 million. The six million visitor figure would put Ontario Place closer to Eiffel Tower-level tourism, which sees just under seven million visitors a year.

But Wayne Smith, a hospitality expert from Toronto Metropolitan University,  is rightly dubious of this number:

"But you know when you take a look at that and, we did the numbers, six million guests a year would be almost 16,500 people a day. That's a lot of people."

However, there is one bright spot in the midst of this fiscal morass. The lease with Therme  prohibits one of Ford's passion projects: a waterfront casino.

When you live in Doug Ford's Ontario, you look for victories, however minuscule, wherever you can find them.