Lease approved for Maid of the Mist

Niagara Parks Commission signs off on extended lease, which now awaits final approval from Ontario government

Katie-Marie Gardner

Globe and Mail

The Maid of the Mist will continue to bring tourists to Niagara Falls after it’s extended lease was approved by the Niagara Parks Commission.

Queen’s Park ordered the NPC to review the contract following complaints that they didn’t open the steamboat service to competitive bids.

“We felt we had a moral and legal obligation to them to negotiate an extended lease,” NPC chairman Jim Williams said. “In the grand scheme of things, there was nothing that offered us the same type of opportunity and the revenues we felt we could get with Maid of the Mist.”

Mr. Williams felt it would be safest to pursue an operator who was familiar with the geography of the water, and said the agreement will allow tourists to take advantage of the attraction at a family friendly rate.

Following speculation that the NPC – the provincial agency that manages the Canadian side of the falls – didn’t allow competitors to bid for the service, a complaint was filed with Ontario Integrity Commissioner Lynn Morrison. She reviewed the complaint and found there was no wrong doing. Ms. Morrison then advised Minister of Tourism Monique Smith to review the decision.

One review was conducted by private accounting firm KPMG, while another was a government audit to review the agency’s procurement and leasing activities.

The NPC and the Maid of the Mist Steamboat Company Limited have a 100-year-old relationship that may now be extended for another 25 years if the contract is approved by the provincial government.

Although Mr. Williams said the board as a whole is very content with the lease, the findings from KPMG’s review said the effectiveness of the board has been hurt by politics, external influences and style differences. They recommended that the commission should strengthen agency governance.

The formal package from the NPC will be brought to Ms. Smith this week where the Ministry of Tourism will review the decision in detail. From there Ms. Smith will present it to cabinet for the final approval.

$50 million for new people-mover system

The City of Niagara Falls “hit the jackpot” on Monday morning when it was announced the federal and provincial government’s will each chip in $25 million toward the long-anticipated about people-mover system.

“We really hit the jackpot today,” Mayor Ted Salci said following a press conference at the VIA Rail station on Bridge Street.

Federal Justice Minister Rob Nicholson, Ontario Deputy Premier George Smitherman and Niagara Falls MPP Kim Craitor were in attendance for the announcement.

Official say the new bus system will enhance existing public transportation systems and tie major areas such as downtown and Lundy’s Lane to the Fallsview tourist district and the properties under the jurisdiction of the Niagara Parks Commission.

The NPC has operated its people mover since 1985.

The new system will be owned and operated by the city.

The 50-50 cost sharing of the $50-million project means the city won’t have to ante up millions of property tax revenues to establish the system, says Salci.

Parks commission upholds lease with Maid of the Mist

Board reaches same conclusion as 18 months ago; Gale says NPC never interested in doing ‘right thing’

The Maid of the Mist should continue to providing tours on the Niagara River for 25 years, says Niagara Parks Commission chairman Jim Williams, ending nearly a year and a half of uncertainty about the iconic boat tour.

Parks commissioners voted Friday to uphold their April 2008 decision to grant a 25-year extension of a lease that allows Maid of the Mist Steamboat Co., to operate its world-famous boat tours from provincially owned land on the Canadian shore of the Niagara River.

Their review of the lease was ordered by Ontario Tourism Minister Monique Smith in March, on the heels of an investigation by Ontario’s integrity commission into a complaint about how it awards contracts.

The lease extension represents a “good deal” for the parks commission, continues a century-old “symbiotic” business relationship and avoids the legal trouble that might follow if the parks commission severed ties with the Maid of the Mist, Williams said.

“We are quite happy with the terms of the lease we’ve negotiated. It’s a good deal for the Niagara Parks Commission,” Williams said in an interview after Friday’s closed-door meeting.

The lease’s status has been under scrutiny since April 2008, when then-commissioner Bob Gale questioned why an extension was granted without considering other companies that might be interested in taking over and running a different boat-tour operation.

Williams agreed it would be possible a different company might be able to run boat tours in a way that would generate more income for the commission.

“But then you have to look t the relationship that has been established over 100 years and the legal precedent.”

One of the key factors commissioners considered was legal advice that not negotiating with the Maid of the Mist might expose the commission to “substantial claims” from the boat tour company now owned by the Glynn family of Niagara Falls, N.Y., Williams said.

“This is a well established company with a proven track record and they are an exceptional partner with the Niagara Parks,” Willliams said.

Officials with the Maid of the Mist could not be reached Friday afternoon after the parks commission’s decision was released.

Gale said Friday he never had much hope the parks commission would reverse its original decision.

“Now it is in the hands of the (provincial) cabinet to step in and do the honest thing for the taxpaer,” Gale wrote in an email to The Review.

Because the lease involves the use of public lands, it still requires the formal approval of the provincial Liberal cabinet.

“Too bad the taxpayer loses again but I didn’t expect this NPC board to do the right thing anyways – they didn’t when I was on the board and I am embarrassed to have been a commissioner, as I tried to represent the public fairly with no support.”

Gale said his main concern was with what he calls the “dirty” process the parks commission followed and efforts by Williams to suppress information about other companies from the commissioners and the public.

When Gale used whistle blowing legislation, it led to an investigation by the integrity commissioner, then to review of how the parks commission functions and audits of its procurement practices and Smith’s order to give the lease a second look.

General manager John Kernahan said the commission has withstood more scrutiny in 18 months than most public agencies ever do, including the integrity commissioner’s probe which led to a review of how the commission governs itself and audits of its procurement practices.

Niagara Falls MPP Kim Craitor said he asked to make a presentation to Smith and other Liberal cabinet ministers about the lease. Craitor said he believes the lease should have been put to tender, giving other potential boat tour operators a chance to bid on it.

“I do support that. Everything should go through a tendering process. It should be an open process,” Craitor said.

A Ministry of Tourism spokeswoman said it’s too early to tell if Friday’s decision satisfies Smith’s requirement that the parks commission give the Maid of the Mist lease a second look.

“We haven’t received the decision package yet,” said ministry spokeswoman Lisa Robart. Ministry staff will review the parks commission’s decision in more detail and provide Smith with advice on how to proceed.

As the minister responsible, it’s up to Smith to recommend cabinet approve or reject the parks commissions decision. Robart said it’s “inappropriate” to speculate what that would be until the ministry’s staff has reviewed it.

clarocque@nfeview.com

The Niagara Parks Commission Unanimously Confirms Approval of Maid of the Mist Lease…

NIAGARA FALLS, ON, Sept. 25 /PRNewswire/ -

In a unanimous decision,

The Niagara Parks Commission (NPC) today confirmed its recommendation to approve its lease agreement with the Maid of the Mist Steamboat Company Limited (MOM).

“We believe this lease is a good deal for The Niagara Parks Commission, the tourism industry in Niagara Falls, and the Province of Ontario,” stated NPC

Chairman Jim Williams. The lease will provide increased rental payments to NPC and is designed to protect NPC revenue streams during years in which visitation may decline. At the same time, the agreement provides incentives for MOM to increase its efforts to bring visitors to Niagara Falls. The deal also includes provisions giving NPC the right of first refusal to purchase the iconic tour boat operation, should the current owners decide to sell. As well, NPC also has the right to approve any fee increase over 10 per cent, thereby ensuring the attraction remains affordable to families and visitors from around the globe.

The decision was reviewed in response to recommendations made by the Integrity Commissioner and the Minister of Tourism. The Commission has reaffirmed its position and will now submit the agreement to the Province for its

consideration. The Commission arrived at this decision having considered the best practices highlighted in the Province’s governance review and audit, as well as having taken into account other expressions of interest that had been submitted to NPC. The process followed was consistent with The Niagara Parks Act and was guided by legal advice provided to the Commission.

Negotiations on renewing the current lease agreement with MOM, which expires in November, 2009, began as early as 2004. With Commission authorization and input, NPC staff met with MOM representatives numerous times. In 2008, the parties concluded a mutually beneficial agreement, which the Commission endorsed by way of its meeting today. The lease now requires Provincial Government Order-in-Council approval if it is to be implemented.

While awaiting the Province’s decision, NPC will continue to examine ways to strengthen its policies and governance practices relative to the recommendations from the Government’s recently completed governance and audit reviews. In cooperation with its tourism partners, NPC will continue to develop its plans to help foster and promote additional visitation to the destination.

“We are facing the most difficult tourism economy in memory. With our decision now made and with these audits and reviews completed, we must double our efforts and continue working with our partners in the local tourism industry here, to help revive the local economy,” stated Chairman Williams.

The Niagara Parks Commission, an Agency of the Government of Ontario since 1885, operates to preserve and enhance Niagara Falls and the Niagara River Corridor for the enjoyment of visitors, all while remaining financially self-sufficient.

An NPC Backgrounder, including a summary of the agreement, as well as highlights of the Government commissioned governance review and audit can be

found at: http://www.niagaraparks.com/aboutus/audit-governance-reviews.php

NPC BACKGROUNDER

MAID OF THE MIST LEASE AGREEMENT

History

Organized ferry service between Ontario and the State of New York has been offered between both countries since 1846.

The Maid of the Mist Steamboat Company (MOM) has been in operation since 1884.

Beginning in 1898, MOM and NPC entered into formal landing rights agreements allowing MOM to pick up tourists on the Canadian side of the border in return for a fee paid to NPC.

Since 1971, negotiated lease payments by MOM have been based on a percentage of revenues generated by MOM’s operation on NPC land

In 1971, MOM had a capacity of 300 passengers per hour on the Canadian side of its operations.

Today, capacity at the Canadian operations of MOM is 2,400 passengers per hour and is served by a highly efficient, high speed elevator system, which is owned and operated by NPC.

The Commission has also developed and operates highly successful retail and food and beverage venues at the MOM landing that are themed on this iconic attraction.

Statement from the Maid of the Mist Steamboat Company

TORONTO, Sept. 25 /PRNewswire/ – “The Maid of the Mist boats have been operating in Niagara Falls since 1846. Today we were pleased, but not surprised, to hear that the Niagara Parks Commission has decided to continue its successful partnership with the Maid of the Mist Steamboat Company.

We are proud of the fact that year-after-year the Maid is ranked as Niagara’s # 1 tourist attraction by international visitors to TripAdvisor.com and by our local community through its voting with the Niagara Falls Review.

Our contract renewal, and the process that led to it, have now been studied over and over again by independent experts and auditors with all agreeing that moving forward is in the public interest.

We look forward to the opportunity to once again turn all of our attention to doing what we do best, bringing the power and beauty of Niagara Falls to visitors from across the world; and leaving them with an experience they will never forget.”

SOURCE Maid of the Mist

Parks to finish review of Maids lease by Oct. 1

Posted By COREY LAROCQUE , REVIEW STAFF WRITER

Members of the Niagara Parks Commission will complete a government- ordered review of its lease with the Maid of the Mist Steamboat Co. “no later than Oct. 1,” chairman Jim Williams says.

Commissioners met last week to consider advice from the provincial government and their own legal staff, and to chart a course for reviewing the lease.

“We had a meeting, but it wasn’t to arrive at a decision,” Williams said in an interview.

A decision will come later this month, when commissioners hold a special session to consider the lease question.

If the parks commission reaffirms its original decision, it would set the stage for the provincial government to grant its formal approval to the deal.

If parks commissioners vote to undo their deal with the Maid of the Mist, it would open the door to some other process for awarding a lease to a tour boat company.

Critics of the parks commission -notably former commissioner Bob Gale and other tourism operators like Ripley’s Entertainment manager Tim Parker -have said the parks commission would benefit financially by putting the lease to tender and allowing the Maid of the Mist and any other interested company to bid on it.

Ontario Tourism Minister Monique Smith, who is responsible for the provincial agency, ordered the commission in March to review its April 2008 decision to renew its deal that allows the Maid of the Mist to operate its boat tours from commission land in the Niagara gorge.

Smith was acting on recommendations from Ontario’s integrity commissioner Lynn Morrison.

Morrison’s office received a whistle-blowing complaint from Gale about how the lease renewal was made.

Smith repeated that order in August when highlights of two other probes of the parks commission were released. The minister said she wanted the lease review completed “by early fall.”

“The key thing is we don’t want to rush the decision. I really want to provide the commissioners with the opportunity to get their questions out,” Williams said.

That might include questions they have about the “supposed bids” expressed to the parks commission by Ripley’s Entertainment last year and by an Atlanta-based ticket broker in 2005. Commissioners will also want to consider legal advice from their own lawyer about their standing with the Maid of the Mist Steamboat Co., the Canadian branch of the American- owned Maid of the Mist company.

“We’re not going to give short shrift to those things,” Williams said.

The Maid of the Mist’s lease ends in November, so last year parks commissioners voted to extend it for a period that has never been disclosed, but which has been reported to be 20 or 25 years.

The tour boat’s season will have ended by the time the lease runs out in November. There are provisions in the existing lease to continue its terms in the event a new lease hasn’t been granted before its expiry.

Because the lease involves the use of provincially owned property, it ultimately requires provincial cabinet approval.

Smith has said it hasn’t made it to the Liberal cabinet’s agenda because it was the main issue under study by Ontario’s integrity commissioner between last August and March.

After Gale complained to the integrity commissioner about the way the lease was handled, Smith ordered a review of the way the NPC is run and the processes it follows to buy goods and services.

Those reports, issued last month, indicated the parks commission generally follows standard business practices but suggested areas of improvement, including communication to the public and clearer rules for outside vendors that want to do business with the government agency.

New expense accountability only hits top-level executives

Posted By COREY LAROCQUE , REVIEW STAFF WRITER

Ontario’s Liberals have heralded new rules on expense accounts as a way to prevent a repeat of a scandal at Ontario Lottery and Gaming, but a bill that would force some officials to submit their expense claims to Ontario’s integrity commissioner will apply to only a small group of executives. And it’s hard to find a provincial employee in Niagara who would be covered by the new rules.

The Public Sector Expenses Review Act applies to executives at 22 of the largest provincial government agencies, including Ontario Lottery andGaming, Ontario Power Generation and the LCBO. When Premier Dalton McGuinty announced the initiative nearly three weeks ago, his spokeswoman said the government is starting with the largest agencies, but will eventually expand the number of agencies.

Under the bill’s provisions, Integrity Commissioner Lynn Morrison would report to the legislature after reviewing the expense claims.

“She will have the power to make people pay back and she will have the discretion to interpret the rules, all of which will improve accountability for Ontario taxpayers,” Government Services Minister Harinder Takhar said in a press release issued after he introduced the bill.

Right now, the bill’s provisions are aimed at the chairmen and chairwomen of the 22 agencies, members of the government- appointed board of directors and a small group of the highest-paid executives.

“Basically, it’s only senior executives,” said Ciaran Ganley, a ministry spokesman. “The board, the chair, and the top five or 10 wage earners.

“We’re trying to capture senior executives -those who would expense more than others.”

Ontario Conservative Leader Tim Hudak questioned how effective the new rules will be, since they were put together quickly in response to the OLG scandal.

“I think, in reality, the McGuinty government has no clue how they’re going to implement this. It was clearly a plan made up on the fly,” Hudak told The Niagara Falls Review.

McGuinty announced the new policy after news broke in August about lavish expense claims filed by executives at OLG, the Crown corporation that manages provincial lotteries and casinos. It led Finance Minister Dwight Duncan to clean house at OLG, appointing a new board of directors and firing chief executive officer Kelly MacDougald.

MacDougald has since filed a wrongful dismissal suit, a case Duncan says the government is prepared to defend in court.

Holding cabinet ministers responsible for the actions of the executives and bureaucrats under them is a more immediate way of preventing abuses of expense accounts, Hudak said.

“I actually believe in ministerial accountability. The buck stops at the minister’s desk. If the minister can’t set the tone how the lunch money is spent, how do we expect them to oversee hospitals, highways or schools in our province?”

Putting a minister’s head “in the chopping block” would send a message to ministers to “clean up their acts,” Hudak said.

There are more than 600 provincial agencies doing government work in Ontario. In most cases the boards of directors are appointed by the provincial government.

The Niagara Parks Commission, one of Niagara’s bigger employers, is not among the 22 agencies covered by the new rules. “We’re not part of that, probably because we’re a small player in terms of those other agencies,” said Jim Williams, chairman of the parks commission whose annual budget is about $80 million. By contrast, OLG brings in about $2 billion into the provincial government’s coffers.

Even though parks commissioners won’t have to submit their expense claim to Ontario’s integrity commissioner, they’re still required to be conscientious about what they bill for. For example, government rules prohibit them from putting alcohol on their expense claims. That’s true whether the agency is one of the 22 subject to the new rules or one of the 600 not yet under that umbrella.

“We may not be exposed to the more stringent review these other agencies have to abide by, but we’re all governed by the same rules. The only difference is we may not be exposed to the same regimen these others will,” Williams said.

Parks Commission approves outdoor rink

Posted By JOHN LAW

Outdoor skating is on its way to Table Rock.

The Niagara Parks Commission has approved a plan by the Winter Festival of Lights for the ‘Rink at the Brink,’ putting a 20-by-40 metre sheet of ice next to the Horseshoe Falls.

Festival of Lights manager Dino Fazio envisions a family attraction similar to the world-famous rink at New York City’s Rockefeller Center.

“It has been quite a challenge for us this year with this project,” he says. “The timelines have been tight since day one.”

Planning began in February, and Fazio says the “logistics” were overwhelming.

But once it’s up and running in November, he expects it to become an “iconic” winter attraction for the city.

The rink will be comparable in size to the Rockefeller Centre ice, and about two-thirds the size of an NHL rink. It will occupy Niagara Parks property north of Table Rock and west of the Niagara Parkway.

“There have definitely been some hurdles,” says Fazio. “There are three massive conduits under that site that used to feed the Canadian Niagara power plant building. So that may affect the exact location of where the rink will be located, by a few feet.”

Fazio expects the project to cost $700,000, making it one of the Winter Festival of Lights’ biggest projects in years.

He said a financial “agreement” was reached with the Niagara Parks Commission to host the rink during Friday’s meeting, but wouldn’t state the cost. Parks chairman Jim Williams was unavailable for comment.

Because of unpredictable mist conditions near the falls, the rink will have a makeshift wall and roof to shield skaters.

It creates “technical” issues few outdoor rinks have faced, says Fazio.

“We have to make sure the roof structure is sound and meets all building codes in regards to wind uplift issues. That site will have mist accumulating on the roof … the structure itself can hold 12 inches of ice on top of it, but we’re not going to let it get to that point.”

The rink is expected to open near the start of November and close at the end of February. It will be open from 10 a.m. to 10 p.m. every day.

Day-pass admission will be $9.99 for adults and $7.99 for children, with a special rate for local residents.

“We won’t have that advertised anywhere, but we’ll push out that message,” says Fazio.

jlaw@nfreview.com

Parks commision plans to bring new life for Old Fort Erie

New Welcome Centre part of planned makeover for 1812 bicentennial

Richard Hutton

Published on Sep 18, 2009

The Niagara Parks Commission plans to breath some new life into Old Fort Erie.

In a presentation to council Monday night, Jim Hill, superintendent of Heritage for the NPC, outlined plans for improvements to the historic site as a part of plans geared to the bicentennial of the War of 1812.

“It’s one of the most impressive properties the NPC owns in relation to the War of 1812,” Hill said. “It’s the first and only fort the British had on the Great Lakes during the American Revolution. It’s the site of the only siege during the war and it’s the bloodiest battlefield in Canada with 3,000 killed (in total) on Aug. 3 and Sept. 19, 1814.”

The parks commission plan calls for a new visitors’ centre, removal of the traffic circle to improve access, replacement of the pavilion, a reposition of the Earthworks and an improved perimeter drawn along the battle lines of the siege.

“Traffic would enter from the west and exit out the current front gate,” Hill said. “It would be redone to replicate the lines of the siege. It would add immediacy, a little more excitement.”

The visitor centre would also incorporate a 70-seat theatre with presentations geared to specific tour groups, museum historical displays, storage for artifacts and archives, a food court and a retail area.

“It’s a great opportunity to launch some things for us and to do more in your community,” Hill said.

Hill was joined in the presentation by Marika Kozachenko, the project manager for the NPC. She said the NPC wants to develop the market of “heritage enthusiasts”.

“We want to take advantage of the bicentennial buzz.”

Kozachenko said the Fort is a gateway to Canada, Ontario and Niagara and some of “the most dramatic stories have happened there.

“It allows for dramatic re-enactments.”

Hill meanwhile, said the NPC made a preliminary application to the federal government’s Canada Cultural Spaces Fund for the new Welcome Centre and its is in the process of bringing components needed.

The NPC has put aside $1.3 million of the total $6 million cost of the project.

Architect Venevio Panici has been retained to draw up a preliminary design for the welcome centre.

Hill said the master plan for the project should be completed by January of next year with NPC approval expected by February. In March, the proposal would be resubmitted to the Cultural Spaces program with funding is expected to be in place by next summer. A completed design should be ready by December 2010 with construction slated to begin in late April 2011. The project is projected to be completed by March 2012.

Bring the Niagara Parks Commission into government: OPSEU

NIAGARA FALLS, ON, Sept. 14 /CNW/ – The province needs to do more to clean up business practices at the Niagara Parks Commission (NPC) beyond simply managing the Maid of the Mist controversy, including making the troubled arms-length agency a direct operation of government, says the union representing workers at the NPC.

“When the government knows one of the contracts wasn’t done properly, why haven’t they examined all recent financial decisions made by the Commission?” said Warren (Smokey) Thomas, President of the Ontario Public Service Employees Union (OPSEU).

The union has cited a record of mismanagement and closed-door dealings at the NPC including:

    -  the leasing of the marina without going to tender;
    -  the development of a $40 million attraction, the Fury, that brought in
       fewer visitors than projected and created no new jobs;
    -  the layoffs of 250 staff over eight years leading to deteriorating
       lands and buildings; and
    -  questionable spending decisions even as layoffs are happening.

“We would have thought with the spending scandals at eHealth and the Ontario Lottery and Gaming Corporation, the government would have taken decisive action to deal with the questionable spending practices, cronyism, and culture of secrecy at the NPC,” said Thomas.

“We believe the best way to protect the parkland and assets is to have the government directly manage them,” he said.

The union questions the conclusion of a government audit that the agency’s procurement and leasing policies are generally consistent with best practices.

“From what we’ve seen and experienced with this employer, there is no way the Commission follows best practices,” said OPSEU Local 217 president Bill Rudd, representing 600 full-time and seasonal employees of the NPC.

For further information: Bill Rudd, OPSEU Local 217 president, (905) 658-5305 or (905) 382-1958