When Sault Ste. Marie City Council starts to mix its metaphors, things can get a little weird. Take, for example, last night’s discussion about a $750,000 grant to the Sault Ste. Marie Innovation Centre.

When Sault Ste. Marie City Council starts to mix its metaphors, things can get a little weird.

Take, for example, last night’s discussion about a $750,000 grant to the Sault Ste. Marie Innovation Centre.

Intended to launch a major job-creation drive in the lottery and gaming sector, the municipal initiative was variously compared at last night’s meeting to a thirsty plant, a shot to the side of the head, even to a snowball with legs.

"We’ve talked about this for a number of years and it’s time we either get moving with it, or not,” said Mayor Christian Provenzano.

“Either we do something about this or we move on to a different project,” the mayor said.

“The time is here and it’s now. And I don’t see any other immediate opportunities that we should be focusing on. I think this is the one that’s most present to us. Although it will be a challenging tree to grow - it’s by no means low-hanging fruit. If we focus and work hard, we could reap some benefits.”

Tom Dodds, chief executive officer at Sault Ste. Marie Economic Development Corp., was also making botanical comparisons.

“We have this in our back yard,” Dodds said, alluding to the Sault’s existing strength in the lottery and gaming sector.

“We’ve been given this gift. It’s like a plant that doesn’t get water and fertilizer. As a community we have to tend to it,” he said.

We’re going to push this snowball along. It’s already got legs

The snowball-with-legs analogy came from Ward 5 Councillor Frank Fata, who didn’t support giving $750,000 to the Innovation Centre, calling the grant a “shot in the side of the head.”

“We’re taking a snowball that’s already in an incline position,” Fata told the meeting.

“Rolling on its own. Expanding on its own,” Fata explained. “We’re going to push this snowball along, rather than be creative and start something fresh….We’re going to push this snowball along. It’s already got legs. And we’re going to spend three-quarters of a million dollars along with the monies that are being contributed by the provincial government.”

Confusing similes and metaphors aside, the city’s $750,000 will be used by the Innovation Centre to ensure the Sault stays in the running in OLG's modernization plans.

It will also help move us away from excessive dependence on OLG, toward a more global gaming economy with more private-sector involvement.

The city money will be provided in three annual payments of $250,000.

Final word on additional funding expected by December

Tom Vair, the Innovation Centre's executive director, is hoping the city's investment will leverage up to $4 million in additional money from the provincial government and the private sector.

Last night, Ward 6 Councillor Ross Romano asked a lot of questions aimed at determining whether the Innovation Centre really needed an immediate commitment for the full $750,000, or whether it could make do with a smaller initial investment until other funding sources are confirmed.

Tom Vair responded that $250,000 is needed to launch first-year operations.

“If we weren’t able to get funding support from Northern Ontario Heritage Fund Corp. or the other gaming organizations, we would have to come back to council with a significantly revised plan,” Vair said.

Vair said he’s hoping to receive final word on additional funding by December.

“We’re looking to hire experienced people with modern gaming experience,” he said.

Compensating for steel industry downturn

“Our hope is, over the course of those three years, we’re going to be able to come back to council with regular updates to show jobs being landed in Sault Ste. Marie, with companies and initiatives throughout that three-year period. We don’t expect that it’s going to take to the end of the three years.”

“Sault Ste. Marie is in a unique position because we have headquarters of OLG here,” Vair said. “In Ontario, I would say we’re unique and we’re at the forefront.”

Ward 6 Councillor Joe Krmpotich said that the gaming and lottery initiative is especially important, given the current downturn in the steel industry.

There was nonetheless a lot of concern expressed about the possibility the city might end up with nothing to show for its investment.

Ward 5 Councillor Frank Fata made it clear he would prefer investing in traditional blue-collar manufacturing jobs.

Service sector grows, manufacturing shrinks

“It’s not the direction where employment is going,” Tom Dodds told Fata. “We have a growing service sector and a shrinking goods-producing sector.”

Even Mayor Provenzano had reservations.

“I’m insecure about OLG modernization,” the mayor said. “I’m insecure about it being a difficult thing for this community. I think it’s going to be very, very hard to capitalize on this. But this is specifically why you’re looking at this project, if I understand it correctly. Because we’re not going to be able to capitalize on modernization if we don’t have that community and human resource developed.”

Ward 2 Councillor Susan Myers cautioned that she opposes any increase in the size of the city’s economic development fund and she asked Dodds to consider, if there are to be any further applications for funds, where that money will come from.

Yes, we can get the people

Mayor Provenzano pointed out that the success of the lottery and gaming campaign will depend on the quality of people we can recruit, and he asked Tom Vair whether we’ll be able to find the right people.

“Yes, we can get the people,” Vair replied, indicating he would use the Sault’s extensive network of expatriates to look for candidates, as well as local employers, college and university and immigration contacts.

Fata argued that Vair didn’t need the money to launch a lottery and gaming initiative, that the project could be carried out using existing staff at the Innovation Centre and the Sault Ste. Marie Economic Development Corp.

“We’re looking to hire people with expertise in the lottery and gaming field or the talent attraction field that don’t currently reside in our organizations,” Vair countered,

“We just simply need the horsepower,” added Dodds. “You can’t do this and do your day job. This takes a dedicated effort if you’re going to be successful.”

We’re willing to put some skin in this game

“We have to do something,” said Councillor Romano. “There’s 900 jobs at stake at OLG right now. We have to do something to show that we want to retain those and attract new jobs.”

Said Mayor Provenzano: “I don’t think we can wait around any more and hope that the jobs show up….I think we have to make a concerted effort to do that.”

“We are at a crossroads with one of our major employers,” the mayor said. “This isn’t simply a matter of the Ontario Lottery and Gaming Corp. It’s a matter of specifically and intentionally trying to develop an industry in Sault Ste. Marie to diversify our economy beyond our traditional sectors. Which we know are challenged right now. I think that we need to show a leadership role here. We need to let private industry know, the gaming industry know, our provincial and federal partners know, that we’re willing to put some skin in this game.”

.(PHOTO: Tom Vair of the Sault Ste. Marie Innovation Centre speaks to City Council on October 13, 2015. Kenneth Armstrong/ SooToday.)

Earlier SooToday coverage of this story

​200 new jobs possible from city lottery and gaming investmemt