Is Detroit's Gain Windsor's Loss

DCTC is a private company that runs both sides of the Tunnel. It has an agreement with the City of Detroit that lasts for another 15 years and one with the City of Windsor that is due to expire in 2 years but DCTC is negotiating with Windsor to extend it.

I assume that Detroit Council must owe a big debt of gratitude to the Bridge Co. for their recent proposal to give them more money over the remaining term of the DCTC agreement---$20 million more. In fact, the DCTC people have apparently told the Detroit Council that they are now prepared to renegotiate their lease. I assume that that will mean that Detroit will receive at least the money to match what the Bridge Co. has offered! Too bad they did not get that money in the past.

According to Deputy Mayor Anthony Adams , DCTC pays Detroit about $600,000 per year. So Detroit should receive slightly more than an extra $1.3 million per year which it would not have received but for the big, bad Bridge Co.

But hold on there....where is that money going to come from? Since DCTC's books are private, who knows? One possible source though is the City of Windsor. How is that possible you say----Remember that DCTC wants to extend their lease with Windsor. How much does Windsor receive? According to Councillor Dave Brister, Windsor receives $6 million in revenues from the Tunnel or 10 times more than the City of Detroit! [I do not know if that includes Duty-free revenue as well]

Presumably therefore, Windsor's amount has to be decreased by some amount or else how will DCTC be able to maintain profitability? If Tunnel revenues are decreased, then don't Windsor taxpayers have to make up the difference?

I thought there was a process that took place in Detroit and both DCTC and the Bridge Co. made their "best" offer. Is it proper now to allow DCTC re-open their bid if they lost?

As for Windsor, have we received the best terms if DCTC can offer Detroit so much more? Why should Windsor renegotiate in secret and with just one Company? Why isn't the process open and PUBLIC to all major players so that we can get the highest amount?

In fact, has the renegotiation already taken place? Who knows since everything here is done secretly at City Council. Remember that the rumour was that Mayor Eddie wanted to buy the Tunnel from Detroit. Windsor would not have the money to do that but a financing group would. And with whom is DCTC associated? Macquarie Bank, a major infrastructure player. Or has a deal been done with DRTP's owner and friend of the Ontario Finance Ministry, OMERS/Borealis?

Now the Mayor is suggesting, probably as a bargaining ploy with DCTC, that perhaps the City might run the Tunnel itself. Remember that was an option on the survey questionnaire I posted previously. Instead of selling the Tunnel now we are going to be running it....Oh my.

I sent the following note to the Mayor and Council and of course received no reply:

• "RE: Extension of DCTC Tunnel operating agreement
  
  Would you please advise if this Agreement has been extended either by the Windsor Tunnel Commission or the City of Windsor. If it has been extended, please advise me of the date to which it has been extended.
  
  Please advise as well when this matter will come before Council so that I may appear as a delegation.
  
  In the circumstances of what is talking place at the border, may I please have this information by the close of business on October 28, 2005."

Taxpayers have to pay out already big bucks to pay for the renovations that were unexpected at the Tunnel ventilation building and now the Mayor is considering playing entrepreneur at taxpayer expense. He should remember why he was elected in the first place. He also should remember what Mayor Daley said when he announced the Skyway deal, "running a toll road is not a core function of city government. Obviously, the Detroit mayor has also figured that out.

Here we go again, the Windsor Junior "A" City Council trying to play in the NHL when it comes to major financing deals. Haven't we learned from MFP and Canderel yet?