Excerpt from the Official Report of
DEBATES OF THE LEGISLATIVE ASSEMBLY

(Hansard)


November 17, 2014

Questions regarding the financial performance of Paragon Gaming and contract with BC PavCo

S. Simpson: Paragon has only ever built two casinos in Canada. One of them was the Eagle River Casino. While Paragon promised that they would turn a profit by 2012, Eagle River was losing $1 million a month in overhead alone. Since then Paragon has filed for bankruptcy protection and left its First Nation partners with $81 million in debt. There’s an empty lot where Paragon promised a hotel.

Does the minister for B.C. Place still agree with his government’s press release that describes Paragon Gaming as one of North America’s leading destination resort developers?

...

S. Simpson: Paragon’s other Canadian casino was the River Cree Casino. When things at River Cree went sideways, Paragon notified their creditors of their intention to seek bankruptcy protection after defaulting on a $111 million loan. In the ensuing mess, Paragon’s development partner spent so much on legal fees that they needed an extra $2 million from the Alberta government just to pay for lawyers.

We know this scheme with Paragon was supposed to supply the money to pay for the cost overruns on the roof. Can the minister responsible for PavCo tell the House: what due diligence did PavCo do before they signed this 70-year agreement to build a mega-casino in downtown Vancouver?

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