A proposed $3 billion overhaul of the Metro Toronto Convention Centre that includes a hotel, sprawling urban park, two new office towers and a casino will generate $50 million in annual property tax revenue, plus millions more in profit-sharing, said an Oxford Properties Group official.

But a company executive warned that without a casino, the deal is dead.

“(The casino) allows us to privately fund the new convention centre and all of the new public amenities that this project includes. If the casino disappears, it’s back to the drawing board for us,” Michael Kitt, the company’s executive vice president in Canada, said Friday, hours after Oxford released its proposal.

Officials at MGM and Caesars, both of which have expressed interest in building an “integrated resort” in downtown Toronto, gave the plan high marks, but observers outside of the gambling world were less enthusiastic.

As the tempting details of the plan circulated at city hall — a 2.2-hectare park over the railway tracks lined with cafes and shops, three floors of Eaton Centre-like retail, a modern convention centre and ballroom, office towers likely to include residential units — councillors grappled with that one important question: is it worth it?

Even right-wing councillors have been torn over whether it’s wise to bring a casino to Toronto to raise revenue. The Ontario Lottery and Gaming Corp. has selected the GTA as one of five sites to be awarded a new gaming facility. Downtown Toronto is the preferred site, but OLG chair Paul Godfrey says the corporation won’t force a casino on a community that doesn’t want it.

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Council is expected to formally debate the issue early next year, with the vote expected to be close. So far, it seems the Oxford proposal hasn’t swayed any minds yet.

“We need to be open-minded. There are some positives …The question is: In order to get the hotel rooms, the entertainment, the restaurants, the bigger convention centre, do we need to add a casino to it? I’m not convinced yet,” said centrist Ana Bailão, who represents Davenport.

Said Parkdale Councillor Gord Perks: “It doesn’t matter how much lipstick they put on it. A casino is still a pig.”

Don Valley West Councillor Jaye Robinson, a member of the mayor’s executive committee, said she is waiting for a city staff report expected in November before making her decision.

“I know there are a lot of people on executive right now who are really struggling with this issue,” she said.

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“I’m not sure I’m going to sell Toronto out in order to have a park. For me, it’s a pragmatic approach — what are the benefits to Toronto and weighing those against the cons that come with a Toronto casino.”

On Friday, Mayor Rob Ford told reporters he wants to see a casino built on municipally owned land — the Oxford property is privately owned — so the city can collect rent. Ford estimates a casino-hotel entertainment complex built at Exhibition Place or in the Port Lands could mean $100 million in annual revenue for the city.

“But if someone can come up on private land with the same amount, I’ll entertain that as well,” he told reporters.

Oxford, which is owned by the Ontario Municipal Employees Retirement System (OMERS), thinks it can.

No matter where the casino lands, Toronto will have negotiated compensation from the OLG. The slots at Woodbine bring in $15 million annually. Since 2000, the city has received nearly $182 million from those revenues.

Kitt says that, in addition, the new office, retail and hotel businesses would generate $50 million in property tax. Two office towers that currently pay $10 million in tax would be torn down during construction, he said, but that temporary loss in revenue would be mitigated by a staggered redevelopment schedule.

Furthermore, Kitt promises a huge injection into the local economy from an enlarged and updated convention centre.

“Bottom line is: we believe the city makes more money here,” Kitt said.

It is unclear where Ford came up with the $100 million annual revenue figure. Councillor Mark Grimes, chair of the Exhibition Place board, said a lease amount has not been discussed and he couldn’t make a guess as to what it might come to.

Under Oxford’s proposal, the real estate company would handle building the hotel, retail, park and office towers. An outside bidder would be sought to work on the design and build the hotel and casino — provided the OLG approves the site.

OLG spokesperson Tony Bitonti said Toronto City Council must make its decision first. If councillors decide they want a casino, the OLG will issue a request for proposals from interested parties — which is when Oxford would be welcome to apply.

MGM initially turned away from the convention centre site as its first choice because of traffic concerns.

With files from Paul Moloney

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