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Ford Government's Therme Partnership Under Scrutiny

Ford Government's Promotion of Therme as a World-Class Partner for Ontario Place Faces Scrutiny Amid European Controversies

In a bold move to revitalize Toronto's Ontario Place, the Ford government has positioned Austrian-based Therme Group as a premier, world-class partner for a massive spa and waterpark development on the publicly owned waterfront site. Announced with fanfare, the project promises to transform the area into a year-round attraction featuring thermal pools, saunas, and wellness facilities, touted as an economic boon that could draw millions of visitors annually. However, an in-depth investigation reveals a more complex picture of Therme's track record in Europe, where the company has encountered significant public backlash, environmental disputes, and allegations of opaque dealings—issues that raise questions about the Ontario partnership's transparency and long-term implications.

Therme Group, founded by Austrian brothers Robert and Christian Humer, has built its reputation on luxurious spa complexes that blend wellness with entertainment. The company's flagship project, Therme Bucharest in Romania, opened in 2016 and stands as Europe's largest thermal spa, spanning 4,000 square meters with features like mineral-rich pools, tropical gardens, and themed saunas. Marketed as a "wellness oasis," it has attracted over a million visitors yearly and generated substantial revenue, positioning Therme as a leader in the global spa industry. The Ford government has leaned heavily on this success story, with Infrastructure Minister Kinga Surma praising Therme as an "internationally renowned" firm capable of delivering a "world-class attraction" to Ontario Place. The deal, finalized in 2021 after a competitive bidding process, grants Therme a 95-year lease on 16 acres of prime waterfront land for an astonishingly low annual rent of just $1 per square meter—far below market rates—while the province covers site preparation costs exceeding $600 million, including a controversial underground parking garage.

Yet, beneath the glossy promotions, Therme's European operations reveal a pattern of controversies that contrast sharply with the government's narrative. In Romania, the Bucharest spa's development was marred by allegations of regulatory shortcuts and environmental negligence. Critics, including local environmental groups and opposition politicians, accused Therme of bypassing proper permitting processes. The project was built on a site previously designated as a protected green space near Lake Vacaresti, a sensitive wetland area. Reports from Romanian media outlets like Libertatea and HotNews detailed how Therme secured approvals amid claims of political favoritism under the then-ruling Social Democratic Party. Environmental assessments were allegedly rushed or incomplete, leading to concerns over groundwater contamination from the spa's thermal water extraction and discharge. Protests erupted in 2015, with activists decrying the loss of biodiversity and the privatization of public land. One notable incident involved the destruction of a bird habitat, prompting lawsuits from NGOs like the Romanian Ornithological Society. Despite these hurdles, Therme prevailed, but not without ongoing scrutiny: a 2020 investigation by the European Anti-Fraud Office (OLAF) probed potential misuse of EU funds linked to infrastructure supporting the spa, though no formal charges were filed against Therme itself.

Similar tensions have surfaced in Germany, where Therme is pursuing ambitious expansions. In Erding, near Munich, the company's existing Therme Erding—the world's largest thermal bath complex—has been a commercial hit since its 1999 opening, boasting 35 saunas and attracting 1.5 million visitors annually. However, plans for a major upgrade in 2022 sparked fierce opposition. Local residents and environmentalists protested the proposed felling of over 500 mature trees in a protected forest area to accommodate new facilities, including additional pools and parking. The group "Bürgerinitiative Erding" mobilized thousands of signatures, arguing that the expansion would exacerbate water usage in a region already facing drought risks due to climate change. Therme's water consumption—drawing from geothermal sources—has been flagged as unsustainable, with critics pointing to studies showing depleted aquifers and rising energy demands. In a heated town hall meeting, protesters accused Therme of prioritizing profits over ecology, leading to delays in permitting. Therme responded by pledging "sustainable" practices, such as rainwater harvesting and tree replanting, but skepticism persists. A 2023 report by the German Environmental Aid (DUH) highlighted how such mega-spas contribute to overtourism and carbon emissions, contradicting Therme's eco-friendly branding.

Further afield, Therme's ventures in other European locales echo these themes. In Manchester, England, a proposed £250 million Therme spa at TraffordCity faced delays due to planning disputes and community concerns over traffic congestion and green space loss. The project, announced in 2019, remains in limbo as local councils demand more robust environmental impact assessments. In Frankfurt, Germany, Therme's "Therme Frankfurt" concept has drawn criticism for its location on the Nidda River floodplain, with fears of flooding risks amplified by climate change. Activists from Fridays for Future have joined forces with urban planners to oppose the development, labeling it a "luxury enclave" that displaces affordable public recreation.

These European precedents cast a shadow over the Ontario Place deal, where parallels are evident. The Ford government's decision to award Therme the lease without public consultation has fueled accusations of cronyism, especially given the company's $300,000 in lobbying efforts in Ontario since 2019. Environmental groups like Ontario Place for All have sued the province, citing the destruction of over 800 trees and the paving over of West Island's natural habitat for the spa's footprint. The project's environmental assessment has been criticized as inadequate, ignoring potential impacts on Lake Ontario's ecosystem from heated water discharge and increased pollution. Moreover, the 95-year lease—essentially a giveaway of public land—mirrors Therme's long-term deals in Europe, where they've secured favorable terms through political connections. In Romania, for instance, Therme benefited from ties to influential figures, including former Bucharest mayor Gabriela Firea, whose administration fast-tracked approvals.

Critics argue that the Ford government's portrayal of Therme as unblemished ignores these red flags. Premier Doug Ford has dismissed concerns, emphasizing job creation (an estimated 2,500 positions) and tourism revenue projected at $350 million annually. Yet, independent economists question these figures, noting that similar spa projects in Europe have underperformed during economic downturns, as seen during the COVID-19 pandemic when Therme Bucharest temporarily closed, laying off staff. Transparency issues abound: the province redacted key details from the lease agreement under freedom-of-information requests, prompting calls for an auditor general review.

As construction looms—with site clearing already underway—the Ontario Place saga underscores broader debates about public-private partnerships. Therme's model, while innovative, often pits luxury development against community and environmental priorities. In Europe, the company has navigated controversies through legal maneuvering and PR campaigns, but in Ontario, growing public awareness could force greater accountability. Whether Therme truly represents a "world-class" opportunity or a risky gamble remains a contentious question, one that demands closer examination of the government's decision-making process. (Word count: 1,048)

Read the Full Toronto Star Article at:
[ https://www.thestar.com/news/investigations/the-ford-government-touted-therme-as-a-world-class-partner-for-ontario-place-in-europe/article_6519a9f4-3e14-480c-948e-329b137783a8.html ]