To avoid being “held hostage” by Gateway Casinos, the Penticton Lakeside Resort has opted not to renew its lease with the casino when their current term ends in May 2017.
The relationship between the two businesses has turned sour over the past year, prompted by the casino actively looking for a new home, according to David Prystay, general manager of Penticton Lakeside Resort.
Tanya Gabara, director of public relations with the casino, said they have simply been doing their due diligence.
“As a business we do our due diligence when we are coming up to any kind of lease renewal so that we examine all our options,” she said.
Prystay said he sees things differently.
“He (Jerry Pokorny, manager of Gateway Casino) told me they were negotiating with the city and the PIB (Penticton Indian Band), so that just means, why be held hostage for them to let us know when they’re leaving,” Prystay said. “Why don’t we make our plans now and take the aggressive stance of saying ‘no, you guys move sooner than later, it suits us just fine.’”
Gabara said they had begun looking at other options for their casino because they were looking to expand their business.
“We want to create a full service entertainment experience and that would involve some more space for us to do so, and there just wasn’t any opportunities to do so within the Lakeside Resort,” Gabara said.
Upon hearing this, Prystay asked for a moment so he could “laugh out loud.”
“Those guys sent me a pencil drawing, some fictitious idea of purchasing two acres of our land,” he said. “In that pencil drawing they were supposed to show me their 40,000 square foot, one level casino, and they showed us a space smaller than their existing casino, so whatever gibberish they’re blabbing to you on that is all smoke and mirrors.”
Prystay said ever since the newest owners took over the casino, they’ve been trying to haggle for lower lease rates for the space.
“When the latest owners moved in they were playing a little more hardball as far as lease rates and stuff like that, and pleading poverty,” he said. “They pled poverty in the last lease negotiations, and now they’re actively saying in the press that they’re going to build a new multi-faceted casino. Well that doesn’t show poverty to me.”
Gateway Casino will remain in Penticton, according to Gabara, but where exactly is still up in the air.
“At this time we’re speaking to many land owners and sellers,” she said. “We’re still exploring all our options.”
Last spring, the casino was in talks with the City of Penticton about possibly moving to a piece of land near the Penticton Trade and Convention Centre, but Gabara said that turned out to not be a viable option for them. She said they have been considering leasing land from the Penticton Indian Band for their new location, but they are still exploring all options.
As for the large area the casino will leave vacant at the resort, Prystay said they will be expanding their convention centre facilities, creating the “largest privately owned convention facility in the interior of B.C.”