Alberta agricultural society objects to relocating casino from Camrose to Edmonton citing legal concerns
CBC
An ongoing legal dispute between a Camrose agricultural society and the owner of the city's only casino is being raised as a key sticking point in the facility's application to relocate to south Edmonton.
The Camrose Regional Exhibition & Agricultural Society, a non-profit organization, filed an objection letter to Alberta Gaming, Liquor & Cannabis Wednesday, claiming the owners of the Camrose Casino still owed the society a "substantial amount" of money.
The society's letter — which was obtained by CBC News — opposed relocating the casino to Edmonton and outlined five grievances about the potential move, including the disclosure of legal filings and whether the AGLC had been privy to all the documents.
The letter was filed as part of a consultation process to move the casino to Edmonton.
In March, four months before the society became aware the casino wanted to move, it filed a statement of claim seeking more than $1.7 million from Mayfield Investments Ltd., the casino's owners, for money it still owed to pay off a loan.
The society said it loaned Mayfield $2.5 million in 2006 to build the casino.
According to court documents, a dispute arose between the parties "regarding the operation of the casino and the indebtedness owed by Mayfield to Camrose."
The society alleges the parties settled their dispute in 2015, with Mayfield agreeing to pay the society $1.5 million through monthly payments of $12,500. But Mayfield defaulted on many of its payments since April 2020, so the society is now seeking interest on what it's owed.
Mayfield filed a counter-claim in May, seeking $500,000 in punitive damages.
The court documents state part of the original settlement agreement meant the casino would only make payments "if sufficient cash-flow was available from the operation of the casino."
Provincial public health restrictions forced casinos to close or reduce operations at various times throughout 2020 and 2021 to prevent the potential spread of COVID-19.
Mayfield argues the closures resulted in little money coming in, so it couldn't make its payments.
It also argues that the settlement agreement stated any frustration or force majeure events, such as a global pandemic, would suspend or eliminate all payments due to the society.
Mayfield Investments Ltd. did not reply to repeated attempts for comment.
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