Rama First Nation breathed a sigh of relief Tuesday after anxiously waiting to hear if Casino Rama would be granted a new operating and development agreement with the Ontario Lottery and Gaming Corporation (OLG).
The Chippewas of Rama will get a 1.9% share of gross revenues from the casino under a new 20-year agreement with OLG.
Casino Rama has had more than $5.2 billion in gross revenues, and profits of about $500 million, since it opened in 1996, and had revenues of $498.4 million for the year ending March 31, 2009.
The share for the Rama First Nation in the first year of the new deal would be approximately $8.8 million, up from $5.8 million under the current arrangement.
The deal includes one-time funding of $2.3 million for a new training and development centre in Rama, $900,000 for a new staff parking lot, a continuation of a $7.8 million service contract for snow removal, fire and police services and another $6.5 million in additional land and building leases.
The long-term agreement ensures the casino's future for up to 35 years, announced Chief Sharon Stinson Henry along with Chris Bentley minister of aboriginal affairs.
"So I say to all of you who have been waiting patiently, who have been concerned about your jobs and about your future and about your families, to all of you who have been waiting for new opportunities in your respective communities, the time has come," Stinson Henry told the large crowd inside Casino Rama's hotel lobby on Tuesday morning.
Negotiations took longer than Rama First Nation had hoped, with the turnover of personnel at OLG slowing discussions.
"It's a relief because it gives us some stability in our future planning," Stinson Henry said. "Knowing that your job is secure for the future bodes well for everyone."
The former 10-year agreement expires in the fall of 2011; the new agreement will take effect in August 2011.
"It's been a long time in the works," Stinson Henry said. "We had to get it done because 2011 was fast approaching. We just rolled up our sleeves and over the last year or so have come to an agreement finally."
With more than 3,000 employees, the casino, hotel and entertainment centre contributes significantly to the economy of Rama First Nation and Simcoe County, making the agreement vital, Stinson Henry said.
The new contract is a 20-year agreement with five-and 10-year renewal terms. The deal is estimated to be worth $1-billion to Rama First Nation.
"We will maintain the 400-plus jobs that we have at Rama First Nation, the (3,000) jobs at Casino Rama and all of the spin-offs that that entails," she said.
Though Rama First Nation had its fears the contract wouldn't be renewed, Bentley says that was never an option.
"Whenever you don't have an agreement, people wonder about the future," he said. Casino Rama "is a source of economic strength, benefit, prosperity, hope and a brighter future and how could we ever let that go? We can't."
With more than 3,000 employees -- about 500 of them aboriginal -- Casino Rama is the largest single-site employer of aboriginal people in the province of Ontario and quite possibly in Canada, Bentley said.
"The agreement that's been reached will ensure future prosperity for all those employed here, for the surrounding community and, yes, enhance benefits for the people of Ontario beyond the borders of the Rama First Nation," he said. "I'm delighted this agreement is happening. When you think of a long-term agreement like this, it really does speak well for the future."
Simcoe North MPP Garfield Dunlop, who stood up in the legislature in October to ask when a new deal would be struck, was "very happy a long-term agreement has been reached, he said.
"I thought it was a no-brainer that the casino would have some kind of a long-term life in our riding because it's very important to the economy," he said. "To lose it would have just been a disaster financially for the area."