dhe October 8, 2013 City Manager City of Ouawa 110 Laurier Averue West Otawa, ON KIF UI Dear Mr. Kirkpatiek, Thank you for your letters dated September 12, 2013 and October 2, 2013, a8 well as for taking the time to diseuss the Municipality Contribution Agreement (MCA) with me on October 1,2013, I understand that you have a number of questions about both the City of Ottava’s role in OLG's on-going modernization process, as well as the new MCA. As such, I would like to address the individual questions set out in your (October 2, 2013 lter, in ten: Re: Future gaming expansion at Rideau-Carleton Raceway. |As you know, rrunicipal choiee is an important element of OLG's modemization, (OLG has always been clear that we will respect @ municipality's decision regarding hosting a new easino or expanding an existing one. For Ottawa, this means that Private sector service providers will be required to follow the devision of Council, articulated in the resolution of August 28, 2013, to limit gaming offerings at Rideau Carleton Raceway to 1250 slots and 21 live table games. With regard to adding 21 table games at the site, we thank you for your clarification of this point as outlined in the March 10, 2011 and June 22, 2011 zoning amendmen. Based on the August 28, 2013 resolution, OLG and the private sector serve provider will not proceed with establishing up to 21 table games at the site until a full development plan is approved by City Council. Should there be a future resolution bby Couneil that anends this current position, our instructions to private sector service providers will change accordingly. Re: Amendments to the MCA pert Program. At the request of government, OLG designed the MCA to be the same for all hast ‘municipalities across the province. As such, we are not prepared to revise the MCA, to remove Section 5 (Community Recognition Program) or amend Section 9 (No Liability of OLG: ing to the Community RecognitionRe: Costs of the Community Recognition Program. The Community Recognition Program will help municipalities increase public awareness and transparency about how hosting. fees ate used to benefit local ‘communities: Under the program, OLG will work cooperatively with host municipalities to develop an initiative that highlights the community use of hosting fes in a manner that reflets the preferences ofthe City. OLG plans to financially ‘support this initiative in each host municipal Re: Role of the private sector service provider in development applications. As you know, OLG is curently conducting a fair and competitive procurement process to select service providers fo run the day-to-day operations of gaming sites. Once selected, the private sector service provider will be responsible for working withthe host municipality to develop a plan for a gaming site that respects the Citys vision and any conditions that the Cty has identified. This includes working with the City to obtain all necessary planning, development and zoning approvals. Its expected that costs related to the development ofthe gaming site will be bore by the private sector service provider and will not impact OLG's remittance of hosting payments under the MCA. Any costs unreasonably levied against OLG directly ‘would be examined in light of Section 3(b) of the MCA and could impact municipal contributions Impact of not signing the MCA. If the City of Otawa chooses not to sign the current MCA, the MCA that was approved by the City in December 2012 ("the December 2012 MCA) wl remain in effect. The December 2012 MCA will cease to apply and the new one will come into cffect immediately upon Coureil's approval of the new agreement, | hope this Jeter clarifies the questions you may have had. If you require any: adcitionalclarifiestion or have any further questions, please do not hesitate to contact ime directly at 416-224-7047 or jpastore@olg.ca, Sincerely, 7 ) ft Jake Pastore, Direstor, Municipal & Community Relations ‘e; Rod Phillips, President & CEO — Larry Flynn, SR. VP Gaming