Ontario’s Premier Doug Ford found himself at the center of controversy following revelations about the leasing agreement with Austria-based Therme Group for a redevelopment project at Ontario Place on Toronto’s waterfront. The situation arose after a New York Times report highlighted concerns from an Auditor-General’s report, which indicated that taxpayers would bear an estimated $2.2 billion in costs. The report also questioned the accuracy of Therme’s claims regarding the number of spas it operates.
Therme Group, which plans to establish a spa and waterpark at the site, was found to have only directly operated one spa in Bucharest, Romania, despite suggesting it managed six in its 2019 application. This discrepancy was noted by Ontario’s Auditor-General, who criticized Infrastructure Ontario for not verifying Therme’s claims. Therme, however, maintains that the other five facilities are operated by partners with whom it shares key staff and concepts. Recently, Therme acquired another site in Erding, Germany.
Under scrutiny, Premier Ford affirmed his trust in Infrastructure Ontario’s processes, emphasizing that all bids, including Therme’s, underwent thorough evaluations and financial reviews. He stated there was no indication of wrongdoing and expressed confidence in Therme’s ability to deliver a world-class project. Ford distanced himself from the bid’s intricacies, noting he did not directly engage with them.
Opposition figures, including Ontario NDP Leader Marit Stiles, criticized the deal, accusing Therme of misrepresenting its qualifications. Auditor-General Shelley Spence’s report highlighted that the lease process lacked fairness and transparency, deviating from best practices. The report suggested 19 recommendations for improving future processes but stopped short of recommending the project’s cancellation.
The audit revealed that Therme’s 2019 application inaccurately claimed ownership of six global facilities, with five instances of misreported ownership. Therme acknowledged that the Erding spa, initially cited as its own, was owned by the family of the concept’s creator, Joseph Wund. Following his death, Therme formalized a partnership with Wund’s foundation, sharing resources and staff.
The Bottom Line
The revelations about the Ontario Place redevelopment project have sparked concerns about transparency and governance in public-private partnerships. For taxpayers, the potential $2.2 billion cost underscores the importance of rigorous oversight and due diligence in large-scale developments. The situation also highlights the need for clear communication and trust between government entities and private companies when entering into significant financial commitments.
Community members and local businesses may closely watch how this development unfolds, as it could impact Toronto’s economic landscape and cultural offerings. The project promises to enhance the waterfront area, potentially boosting tourism and local commerce, but also raises questions about accountability and fiscal responsibility in governmental decision-making.
