Thoughts and Opinions On Today's Important Issues

Monday, June 21, 2010

The “Canada” P3 Bill Provisions: Why Canada Has To Up The Ante On DRIC

The Michigan P3 Bill is a subterfuge. A simple loan from Canada would have provided the $550M. However, the P3 Bill is absolutely needed by Canada to make it an “Instrumentality of Government of Michigan” or its 50 year long lust for the Ambassador Bridge would never be satisfied. After all, in the original Bill, the definition was simply the following:
  • "Instrumentality of government" means a legal public entity created or empowered to carry out functions commonly carried out by units of government.”

There was NO mention of Canada whatsoever in the original Bill. “Canada” just appeared in a subsequent revision with no real explanation given why it was needed and why the change was made. No wonder.

That is one of the many provisions in the Michigan P3 Bill that Canada desperately needs in order to achieve its 50-year objective of taking over the Ambassador Bridge and then twinning it. Nothing can stand in Canada’s way because it is feared that if Moroun beats them again, Canada will never have another chance to take over the Ambassador Bridge. That is why Transport Canada Minister Baird had to make it happen, and had to make it happen now.

It is my greatest "conspiracy theory" BLOG ever. Except, it is no longer a theory, in my mind at least. It is fact as I shall demonstrate conclusively to you.

And it all came together in a flash because of the tearing down of an Ontario tourist bureau office on Huron Church Road near the Ambassador Bridge. That move made no sense given the huge volume of traffic that goes over the Bridge and the need to provide tourist information to tourists about Windsor. The new location of that office is now 45 minutes east of Windsor at a service centre on Highway 401, something that is absurd if one wishes to build up tourism in this region. There had to be a rational explanation for this incomprehensible move and there was but it had nothing to do with tourism.

Sit back with a lemonade and relax on this hot, steamy, almost summer day and read on.


It is a long read but one that I think will be worthwhile for you to take a look at. It provides lots of background information and an explanation about what has gone on over the past year or so in order for you to understand why everything is coming to a climax shortly.

It shows the extent to which Governments will operate to crush their opponents instead of dealing fairly with them. To be blunt, if they can try to do this to a person like Matty Moroun with his powerbase, imagine what they are doing to us every single day with impunity. It is mind-boggling to me how much Governments are out of control.

It's a good story. It involves huge sums of money, power politics at the highest levels of our Governments, stratagems, deception, moves and countermoves that no Chessmaster could ever hope to do plan against. Demonization and vilification become the norm to eliminate any hope that the opponent can obtain support from the public or decision-makers.

I will explain to you what Canada's and Ontario's real plan is for the border road and bridge and how the P3 bill is being used to give Canada complete control over the central North America corridor. On both sides of the border. It will help ensure that any new jobs are created in this country and not the United States and that trade into and out of the US is controlled by us. I do not mean infrastructure jobs either but jobs in manufacturing and distribution.

To put it bluntly, as we know now from the Prime Minister's secret mandate letter, Canada wants the Ambassador Bridge, not some ridiculous DRIC bridge 2 miles down the road at a cost of billions of dollars which will then go broke because the toll revenues cannot support it. Who is going to take the chance to build a bridge over salt mines and brine wells where there have been sinkholes? Canada will twin that bridge as it has done at the Blue Water Bridge and is proposing to do at the Peace Bridge.

Forget some superduper, expensive, partially tunneled DRIC road to the DRIC bridge. Ontario cannot afford to make the "availability payments" necessary on a multibillion-dollar road. We are going to get the equivalent of a cheaper, below-grade DRIC road right to the Ambassador Bridge. Take a look at Chris Schnurr's BLOG to read about it in more detail.
http://chrisschnurr.wordpress.com/2010/06/17/twinning-by-stealth/

The final 2 kms to the Ambassador Bridge are being built right now even though no one knows it and the cost will certainly not be $550 million either. The Tourist bureau office will be removed and as you will note there is a huge strip of land to the west of Huron Church Road that will be used to as a continuation of the DRIC road right to the Ambassador Bridge. ("GD1.1is defined as a Green District and this 40-45 meter strip goes down the entire length, generally speaking, of the western side of Huron Church Road to EC ROW – with a few commercially zoned sections.)








That is the new border crossing route between Canada and the United States. It will be our Highway 401 connection that will eliminate the infamous traffic lights. It has always been the route since the Ambassador Bridge was built almost 80 years ago and will continue to be the route. Why else was the land set aside!

That road will connect into the existing bridge plaza on the Canadian side that will flow right into the Ambassador Gateway project on the American side which connects to the US Inter-state system. The Americans don't need to wipe out Delray and build a duplicate plaza there. That is completely absurd.

What we will see on the US side is exactly what Michigan and Congress intended when the Ambassador Gateway project was approved and financed and designed to accommodate a second span. The only difference will be that Canada will own it and be in complete charge of the corridor between Canada and the US, something no one ever expected from America's friendly neighbour.

Oh don't worry, security and redundancy will no longer be a concern because we will either have reverse customs or Shared Border Management, something that Canada would not allow as long as Moroun owned the Ambassador Bridge.

Remember my BLOGs on P3 cocaine. Well you are seeing a prime example of it in action in Michigan right now. Politicians and bureaucrats are being hooked on P3 cocaine by dealers who bair(d) financial offers to make anyone drool:

Watch as

  •  Michigan gives over a piece if its sovereignty to a foreign jurisdiction.Canada, at NO cost

  •  The cost to buy the entire State is set at only UP TO $550M and in fact the real cost is the cost to fax a 2-page letter to the Governor

  •  Michigan gives control to its prime border crossing to a foreign country thereby harming severely its economic future as jobs are created in Canada, manufacturing jobs similar to the "foreign trade zone-type” program arrangement that Canada is developing in Winnipeg as we speak. [“The Manitoba government continues to support CentrePort Canada, which will provide a competitive advantage and help make our province the location of choice for industries and manufacturers looking for new and innovative ways to get their goods to world markets,” said Premier Selinger.]

  •  Michigan's main transportation connections---international highway, bridge, tunnel, ferry, airport, port facility, locks rail facility, intermodal or other public transit facility --- can be controlled by a foreign country who is an "Instrumentality of Government of Michigan" under the P3 Bill

  •  P3 money distorts the governmental system where the Bureaucracy is being given power to ignore the Legislature.

  •  The Governor who has failed in her eight-year term tries to build a legacy for which she will be remembered and tries to divert attention from having one of the highest unemployment rates in United States by screaming "jobs, jobs, jobs."

  •  MDOT sees the way to get as much money as possible from the private sector since the State does not have the cash and without legislative oversight, never mind what it does to taxpayers down the road.

  •  Legislators are given incomplete information and expected to "ASK NO QUESTIONS" as money is thrown in their faces.

It really did come together at the wrong time. The announcements about DIFT, DRTP and the tourist office closure were supposed to have happened after the P3 Bill was passed. It would have been game over for Moroun by then it was expected.

Unfortunately, the persuasiveness of the Bridge Company representatives meant that votes were not taken on the P3 bill in the House and Senate when they were supposed to have done so. Accordingly, the "rail" and closure announcements make a mockery of the need for a new $5 billion DRIC bridge.

With all of the traffic being diverted to rail there is no possible justification to spend $5 billion on a new bridge. Naturally, Canada knows that since it never had any intention to spend that kind of money. Try and find that sum budgeted somewhere in Canada’s Economic Action Plan. I could not find the $550M because it is not there either. Some P3 operator has to put up the cash, not Canada.

Nevertheless, Canada will up the ante to keep on exerting pressure on the Michigan Legislature in order to beat Moroun. It has no choice. It is a foregone conclusion respecting a "generation or two effort" that was really worked on hard during the last decade as John Baird told us.

Canada has to offer more money, a ton of it, or at least to pretend to do so to sucker the Senators. It will follow the precedent of the UP TO $550 million loan as Canada's Transport Ministers said it was in his press conference but which is not a loan as the DRIC-ites claim so it does not run afoul of the Michigan Constitution but which is a loan because it has to be paid back. Canada will merely send an amending letter to the breathless Governor which will add on enough money so that the Senators cannot say no.

However, the question that has always bothered me is why is there this push on to build the DRIC bridge with a P3 if in fact Canada's Prime Minister sent out a secret mandate letter that was disclosed by the media to buy the Ambassador Bridge. If Canada really wants the Ambassador Bridge then why is it focusing on DRIC so hard.

Of course, I have given you my explanation: DRIC is nothing more than a tool to try to force the Bridge Company owner to sell out cheaply.

That is clearly the obvious reason to do so but why is there the need for the P3 Bill? That is the real puzzler. Canada does not need that Bill. It merely needs to set up a simple loan which would be paid back by tolls. Nothing complicated needs to be done, no P3 is needed and everybody would live happily ever after if that took place.

I know, I know, I know. The Legislators are all upset over legislative oversight. No one wants to give this Department under Director Steudle the power to do anything.

Ahhhh, dear reader, remember that when dealing with Canada one must never take anything at face value. We are being distracted by all those terms and conditions dealing with P3's. That is deliberate so we will not focus on the real issues. We are falling into Canada’s trap. That is not the real reason for the P3 Bill as you shall see.

It is obvious by now that the Governor and MDOT screwed everything up.

It is pretty clear that Jennifer needed to be breathless because she could not line up ther votes to get the P3 bill passed by the House. Accordingly it was necessary for the $550 million offer to be made by Canada. My speculation is that the money was designed to be offered to Senators if it seemed that they would not pass the P3 Bill given their opposition to it.

MDOT was supposed to slide through the lack of proper revenue and cost figures by holding out as long as they possibly could. Unfortunately, for them Senators did not back down. First came a three-page memo prepared by Transport Canada that achieved nothing. Then came a "lawyering dump of documents" of hundreds of pages that achieved the same result because no cost figures were provided.

It appears now that this P3 Bill will be lost. Exactly how no one knows e.g. it may never be voted on, it may be voted down, it may be rewritten... who knows what will happen.

Canada does not want to take that chance. It cannot have that happen. If it does, all may be lost, forever, other than to run to the US Feds and have them take over the file from Michigan if that is possible. What a real slap in the face that would be to the State and to Jennifer’s chance for a good job after her term ends.

That is why we have NAFTA-gate Jr. Transport Canada Minister Baird's job is to make it happen as he told us. He already informed us that it must be done now because matters could be delayed for two years otherwise. What he means is that there could be an unfriendly Governor, House and/or Senate that could prevent things from happening until the next election two years from now in Michigan. So he has to butt in with money to change the dynamics of the election in Michigan.

That is a similar stunt Canada pulled respecting Hillary Clinton and then on President Bush when the Conservative Government of Canada was afraid that President Obama might be elected. He was viewed after all as a risk to NAFTA.

Expect John Baird to make the appropriate announcement at the right time with big bucks being thrown around. It might come as early as this week since the Senators have asked for a representative from Canada to attend the hearings. Wouldn’t it be a shocker to have the Transport Minister attend. What a platform for him to make his pitch of more big money to generate headlines. Who could resist then?

But why does he want a P3 Bill if a simple loan can provide the financing. Let me point out the relevant sections of the P3 Bill so that you understand. Consider these sections the real reason why Canada will pretend to offer huge sums of money to Michigan:

  • (E) INSTRUMENTALITY OF GOVERNMENT ADDITIONALLY MEANS THE GOVERNMENT OF CANADA OR A PUBLIC AGENCY OR PUBLIC AUTHORITY CREATED BY THE GOVERNMENT OF CANADA OR ANOTHER STATE OF THE UNITED STATES OR A CORPORATION WITHOUT SHARE CAPITAL CREATED AND EMPOWERED UNDER THE CANADIAN INTERNATIONAL BRIDGES AND TUNNELS ACT TO CARRY OUT FUNCTIONS COMMONLY CARRIED OUT BY THE GOVERNMENT OF CANADA.

  • (G) PUBLIC-PRIVATE AGREEMENT INCLUDES AN AGREEMENT BETWEEN THE DEPARTMENT AND 1 OR MORE INSTRUMENTALITIES OF GOVERNMENT IF THE AGREEMENT IS RELATED TO A PROJECT THAT HAS OR WILL HAVE AN AGREEMENT BETWEEN THE DEPARTMENT OR AN INSTRUMENTALITY OF GOVERNMENT AND A PRIVATE ENTITY.

  • Sec. 6a. The director may do the following:

    (H) ACQUIRE INTERESTS IN REAL AND PERSONAL PROPERTY, INCLUDING BY CONDEMNATION.

    K) ENTER INTO PUBLIC-PRIVATE AGREEMENTS UNDER SECTION 7B
    SUBJECT TO THE APPROVAL OF THE COMMISSION.

  • Sec 7 (2) (2) The commission may do the following:
    (a) Delegate to the director, or any subordinate, any powers, other than the power to establish policy, vested in the commission as it considers necessary and permit the director to delegate any powers delegated to him or her by the commission EXCEPT FOR THE POWER TO APPROVE PUBLIC-PRIVATE AGREEMENTS UNDER THIS SECTION.

    (b) Acquire, AUTHORIZE THE DEPARTMENT TO ACQUIRE, own, and
    hold INTERESTS IN real and personal property in the name of the THIS state or the commission DEPARTMENT and TO sell, lease or otherwise dispose of, or encumber, ANY INTERESTS IN the same in connection with, and in furtherance of, its duties and the purposes of this act, SUBJECT TO RESOLUTIONS OF THE COMMISSION.

  • SEC. 7B. (1) THE DEPARTMENT MAY ENTER INTO PUBLIC-PRIVATE
    AGREEMENTS AS PROVIDED IN THIS ACT.

    A PUBLIC TRANSPORTATION FACILITY SHALL BE PUBLICLY OWNED
    AND SHALL BE DEDICATED TO THE PUBLIC USE AS A PUBLIC TRANSPORTATION FACILITY AS PROVIDED IN THIS ACT.

    THE AGREEMENT SHALL PROVIDE THAT THE OWNERSHIP OF A PUBLIC TRANSPORTATION FACILITY WITHIN THIS STATE SHALL BE VESTED IN THE DEPARTMENT OR A PUBLIC ENTITY CREATED UNDER MICHIGAN LAW.

  • (5) IN ACCORDANCE WITH THE TERMS OF A PUBLIC-PRIVATE AGREEMENT, THE DEPARTMENT OR AN INSTRUMENTALITY OF GOVERNMENT SHALL OVERSEE THE ACTIVITIES OF A CONCESSIONAIRE CARRYING OUT THE TERMS OF A PUBLIC-PRIVATE AGREEMENT.

  • 13) A PUBLIC-PRIVATE AGREEMENT SHALL NOT DELEGATE THE POWER TO CONDEMN PROPERTY TO THE CONCESSIONAIRE. ALL RIGHT OF WAY ACQUIRED THROUGH CONDEMNATION THAT IS USED FOR A PUBLIC TRANSPORTATION FACILITY SHALL BE AND REMAIN PUBLICLY OWNED DURING THE TERM OF A PUBLIC-PRIVATE AGREEMENT.

  • SEC. 7F (5) THIS SECTION DOES NOT LIMIT AN INSTRUMENTALITY OFGOVERNMENT'S AUTHORITY TO ISSUE BONDS OR OTHER FINANCIAL INSTRUMENTS FOR TRANSPORTATION PROJECTS UNDER OTHER LAWS.

  • SEC. 7G (4) THE DEPARTMENT MAY ACCEPT 1 FROM ANY SOURCE, AND USE FOR SUPPORTING A PUBLIC TRANSPORTATION FACILITY AUTHORIZED BY A PUBLIC PRIVATE AGREEMENT, ANY GRANT, DONATION, GIFT, OR OTHER FORM OF CONVEYANCE OF LAND, MONEY, OTHER REAL OR PERSONAL PROPERTY, OR OTHER ITEM OF VALUE

  • A PUBLIC TRANSPORTATION FACILITY AUTHORIZED BY A PUBLIC-PRIVATE AGREEMENT MAY BE FINANCED IN WHOLE OR IN PART BY CONTRIBUTION OF ANY FUNDS OR PROPERTY MADE BY ANY PERSON OR ENTITY.

  • (7) FOR ANY INTERNATIONAL BRIDGE CROSSING THAT DOES NOT EXIST AS OF THE EFFECTIVE DATE OF THE AMENDATORY ACT THAT ADDED THIS SECTION, PRIOR TO RELEASING A REQUEST FOR PROPOSALS FOR A PUBLIC PRIVATE AGREEMENT, THE DEPARTMENT SHALL ONLY ACQUIRE PROPERTY NEEDED FOR THE INTERNATIONAL BRIDGE CROSSING IN THIS STATE THROUGH VOLUNTARY ACQUISITIONS FROM WILLING SELLERS EXCEPT THAT THE DEPARTMENT MAY EXERCISE ITS POWER OF EMINENT DOMAIN TO ACQUIRE PROPERTY IF IT GIVES NOTICE TO THE LEGISLATURE AT LEAST 30 DAYS BEFORE FILING CONDEMNATION PROCEEDINGS.

Pure and simple, these are the “Canada provisions” needed to control the Central North American corridor. The Canadian Atlantic and Pacific Gateways are already in operation. All that is needed is the Ambassador Bridge corridor and the job is done.

If you read these sections very carefully, Canada becomes an Instrumentality of Government of the State of Michigan. Just consider all of the sovereign powers that Canada obtains as a result and not just under this statute either. It cost Canada nothing to accomplish this in the House vote except for a two page letter delivered by a breathless Governor that will be probably amended to increase the amount for the Senate to pressure the members.

Note as well the very broad delegation powers, which powers could be granted to an Instrumentality of Government. Canada wants that too since it then can obtain control over Michigan’s “international highway, bridge, tunnel, ferry, airport, port facility, locks rail facility, intermodal or other public transit facility.” Talk about over-reaching to control another country’s trade routes! Everything is included, everything

The Director is permitted to condemn property [Note that NO Commission approval is required.]. In fact, property can be condemned for “for any international bridge crossing that does not exist as of the effective date of the amendatory act that added this section” just so that there is no doubt.

There can be a so-called P3 agreement even if there isn’t the one in existence but one may happen down the road.

An Instrumentality of Government has very broad financial powers even if there is no P3. It could even give to the State “any grant, donation, gift,”

Consider as well the number of times that the facility is said to vest in the State and to be owned by the public.

These “Canada provisions” is what Canada wants out of the P3 Bill. What the bill does effectively is allow Canada and the MDOT Director on their own to do whatever they want including condemnation of property, P3 or no P3. Just say there is going to be one.

I think this is a neat way as well around the provisions of Michigan’s condemnation rules. There are no “funds have been appropriated by the legislature to a state agency, a division of a state agency, the office of the governor, or a division of the office of the governor for the purpose of acquiring lands or property for a designated public use, “ Again, another way to eliminate legislative oversight.

It is certainly a brilliant plan conceived by brilliant Canadian bureaucrats. No offense but this is way out of the league of MDOT people. I know that that is not fair since Canadian bureaucrats have had about 50 years to plan this.

Why is all this necessary? One reason became clear during the Senate hearings. Dan Stamper made the comment that the Canadian Government has effectively admitted that the FIRA settlement with the Bridge Company precludes them from taking the kind of steps that they would like to take against Moroun. Accordingly, the International Bridges and Tunnels Act (“IBTA”) was introduced in Canada and directed specifically at the Ambassador Bridge to take the place of the Foreign Investment Review Act legislation under which Moroun beat/settled with the Canadian Government.

That was step one but it was only on the Canadian side. How then could something similar be done on the US side without creating a storm since Canada had no legislative authority there. Become a Michigan surrogate was the answer, an Instrumentality of Michigan. And rub it in the face of Moroun’s position as a “federal instrumentality.” And you thought Bureaucrats had no sense of humour.

Someone figured out that the way to do so was to bury what Canada wanted in another piece of legislation. That is what the IBTA was all about as well. It was supposed to rationalize oversight over bridges and tunnels and to show the US that we are serious in security matters. In reality, the Ambassador Bridge was the target.

A step two was needed therefore for the US side. Canada knew that there was no way possible that the State of Michigan or the US Government would ever pass anti-Moroun legislation because it would mean wiping out an American company. This kind of treatment only takes place in Cuba or Venezuela.

There was a need therefore to try to pass legislation similar to the IBTA in its end result but to disguise it. There was no way that Canada could allow the Michigan Legislature to vote the DRIC bridge “up or down.” They expected to lose that battle because all other justifications have proven to be phony as well as the costs of the project mean that Michigan taxpayers are on the hook. The Senators were not going to go along.

Accordingly, P3 legislation was introduced to divert everybody’s attention away from the real purpose of what the Act is designed to do. Everyone focused on the defective P3 sections and pretty much ignored the “Canada provisions.” Tie it in with DRIC and everybody would be completely confused so that Canada’s needed provisions would be passed with no one the wiser.

The effect of passing this legislation as well as the IBTA would mean that Canada could exert tremendous pressure on Moroun legislatively on both sides of the border to sell out or else. Canada as an Instrumentality of Government of Michigan as well as with its Federal Powers in Canada would be able to browbeat him.

Moroun would be the piece of wood between the 2 jaws of the vise being pressued as it slowly screwed tighter. Canada would expect that he would get the message very quickly knowing he has one foe after him on both sides of the river with all kinds of legislative power and would sellout before the value of his Bridge was decreased tremendously.

With the IBTA in Canada and the “Canada” provisions in the Michigan P3 Bill, Canada would be all set. That is why a simple loan transaction was not something that Canada was interested in. It needed a P3 bill to give it .the sovereign power on the US side of the river to go after Moroun.

There you have it: the border route, the objective to destroy Moroun and why, the plan of action, the real reason for P3 legislation in Michigan. And the over-riding Governmental need for Canada to control the trade corridors into and out of the US and why. The conspiracy theory is now a “fact.”

It has nothing to do with Matty Moroun except that he is the owner of the Ambassador Bridge. Canada’s actions started long before he was the owner. His mistake is that he did not read the script. He was supposed to have sold out cheaply by now. He has to be punished for that.