By Leah Murray

Casino by Vanshaw to reopen; owner searching for new location

Jan 4, 2017 | 3:45 PM

MEDICINE HAT, AB — After a sudden closure earlier this week, Casino by Vanshaw has announced it will reopen.

However, the casino’s president has stated it plans to look for a new home for the facility once the current lease with the Medicine Hat Lodge expires.

“Our lease with the Medicine Hat Lodge is not perpetual, by its own terms it will expire,” said Kevin VanDerKooy, the president of the casino, in a statement on Wednesday.

In a statement on Tuesday, VanDerKooy mentioned the casino was looking to move to “A more community supportive location.”

VanDerKooy did not speak in detail about where they planned to move, but in his statement, said “We seek a healthy relationship with a landlord and for that reason have been working on the possibility of exciting new premises for some time now.”

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The casino reopens to the public at 9:45 a.m. on Thursday, three days after employees and patrons arrived to a locked door and a message stating the casino was closed temporarily. The closure, according to the memo, was due to unpaid rent from the casino’s parent company Vanshaw Enterprises to the Medicine Hat Lodge.

Vanshaw sued Mayfair Investments Ltd., the parent company of the Lodge, in regards to unpaid rent following changes to the casino’s lease in 2014. Vanshaw alleged it had been overpaying rent since the lease was changed. Mayfair Investments filed a countersuit to the claim.

According to court documents, the primary concern raised during the suit was in relation to Elements Entertainment Lounge, a restaurant operated by the Lodge inside the casino. The lounge was built to meet an Alberta Gaming and Liquor Commission requirement to provide food and beverage service to the casino’s patrons. Issues arose about whether the lounge was part of the casino’s leased area.

A judgement delivered in October ruled in favour of the Lodge. The judge said the Lodge would be in a position to terminate its lease with the casino, but also added “it would not be acting in its best interest” to terminate the lease, according to the judgement.

But the legal battle isn’t over. The lawyer for Vanshaw Enterprises said the company is appealing the court’s decision. The appeal is scheduled for July.

The lawyer confirmed at issue is whether the Casino should pay an extra $18,000 in rent for the lounge space.

The casino supports more than 180 non-profit groups, giving them a space on the floor to raise funds for their organization. Safety City was the organization who were scheduled to fundraise in the casino on Monday when it closed, and executive director Tom Carney says the money it had raised at the casino is beneficial to helping to organization operate.

“We receive, on average, between $15 to $25,000 a year, so if we do not receive that funding this year, we will be in desperate need of other funding a sponsorships,” he said.

VanDerKooy said in his statement the casino desires to end the existing litigation with our current landlord on reasonable terms.”

A spokesperson for the Medicine Hat Lodge confirmed there are four years remaining on the lease with Vanshaw Enterprises.

Employees of the Casino who spoke with CHAT News on the condition of anonymity said they’ve been in the dark when it comes to what’s going on. They’ve said at this point they aren’t sure if there will be any compensation for the hours they’ve been unable to work due to the closure.

CHAT News also spoke to the Alberta Gaming and Liquor Commission. A spokesperson said while it is possible, a relocation would require an extensive regulatory process.