Lawsuit to declare Niagara Parks Commission & Maid Lease Illegal

The big news in Niagara Falls is the huge controversy over the secret practices of The Niagara Parks Commission in awarding a lease to Maid of the Mist Steamboat Company Limited to offer the boat service at Niagara Falls.  It is estimated that the lease will generate at least half a billion dollars for Maid of the Mist.  The lease was granted without any competitive bidding.  One prospective bidder says he will pay as much as an additional $50 million for the lease. A lawsuit to declare the lease illegal is being filed.

Boat service has been provided at Niagara Falls since 1846.  The Province of Ontario and the State of New York lease the land to a third party so that boat rides can be offered at Niagara Falls.  These rights in Canada are granted by The Niagara Parks Commission.

Since the boat rides began in 1846 -- 162 years ago -- only one entity has held the lease rights: Maid of the Mist.  This is an exclusive that gives the lessee an exclusive monopoly with no competition whatsoever.

According to a recent article in the Buffalo News, 2,500,000 people take the Niagara Falls boat ride each year.  The annual revenues to the lessee have been estimated to be $26 million annually.  It is not known what prices have been charged over the years, but if the current revenue is generated for the next 162 years, the lessee will generate over $4.2 BILLION DOLLARS

There has been no indication that any company other than Maid of the Mist has ever been given the opportunity to bid on the lease rights.

On August 8, 2005, William M. Windsor inquired about bidding for the lease rights to be able to offer boat service at Niagara Falls.  He was told that The Niagara Parks Commission was not accepting bids.

In January 2008, Tim Parker of Ripley's Entertainment inquired about bidding for the lease rights to be able to offer boat service at Niagara Falls.  He was told that The Niagara Parks Commission was not accepting bids.

In April 2008, The Niagara Parks Commission approved (a year and a half early) a 20-year extension of the lease that allows Maid of the Mist to operate from land owned by The Niagara Parks Commission.  William M. Windsor's August 2005 inquiry about bidding on the lease was not disclosed to some or all of the Niagara Parks Commissioners.  William M. Windsor has been told that the April 2008 approval was not based upon any bidding process; no other company was given an opportunity to be considered for the lease.

In late June 2008, the Seneca Niagara Gaming Corp. complained about the process and expressed interest in bidding for the lease.

In July 2008, Niagara Parks Commissioner Bob Gale formally complained to Ontario Integrity Commissioner Lynn Morrison.  He said he was frustrated by the Parks Commission’s renewal of its lease with the Maid of the Mist Steamboat Co.  Gale said other companies should have a chance to bid on that lease because a different company might offer a better deal than the steamboat company.

In September 2008, Ontario's Integrity Commissioner began an investigation into a complaint about The Niagara Park's Commission's process, filed by commissioner Bob Gale.  That ethics investigation is ongoing.

William M. Windsor was unaware of any of the 2008 developments until October 12, 2008 when his son sent him a link to a web page with the article about the ethics investigation that appeared during an Internet search for Niagara Falls. 

On October 12, 2008, William M. Windsor sent an email to The Niagara Parks Commission again expressing interest in bidding on the lease to be able to operate the boat service at Niagara Falls.

On October 16, 2008, William M. Windsor received an email in response to his October 12, 2008 email from John Kernahan of The Niagara Parks Commission that stated: "The Niagara Parks Commission is not presently considering submissions."

On October 31, 2008, William M. Windsor sent a detailed email and fax to Mr. Kernahan, Mr. Gale, and each member of The Niagara Parks Commission.   This letter included the following information:  "I contacted the Niagara Parks Commission on August 8, 2005 expressing interest in bidding on the boat service at Niagara Falls.  I am prepared to submit a bid for the boat service at the Falls that will pay the State of New York and the Province of Ontario significantly more than Maid of the Mist pays.  I am prepared to submit a bid that will include proposals for improving the service offered at Niagara Falls.  I am prepared to submit a bid that will bring new environmentally-friendly boats to Niagara Falls.  I know of many other companies that would be delighted to have the opportunity to bid."

Windsor has attempted ever since to get someone to speak with him about this situation. When nothing was done, Windsor retained an attorney to file a lawsuit to declare the lease to be illegal.

(Continued -- Part 2 of this story.)

Complete details of the bid and attempts to work with The Niagara Parks Commission have been published online at www.NiagaraFallsBid.com.