The firm that designed and built an energy plant to power a casino in Windsor says it will drop its lawsuit against the Ontario Lottery and Gaming Corporation (OLG) and now wants to buy the plant for $71 million.

The provincial regulator for gambling and lotteries commissioned Buttcon Energy Inc. in 2006 to build the Windsor Energy Centre.

The plant was to ensure a reliable supply of power to the Caesars Windsor casino, which has undergone a massive expansion over the last few years.

But the OLG and Buttcon — which was to eventually operate the plant — are now suing each other, citing issues with, respectively, the design and the ownership of the project.

Buttcon says it has offered to drop its $355-million lawsuit against the OLG, provided the corporation agrees to sell it the plant for $71 million, according to a statement released Wednesday by the energy firm.

"Buttcon Energy Inc. will reimburse OLG for all costs and expenses incurred by OLG and paid to Buttcon Limited in connection with the design and construction of the Windsor Energy Centre," Buttcon lawyer Michael Miller said in a statement.

"Buttcon's offer would get Ontario taxpayers off the hook for the costs of construction of the natural gas-fired power plant, which is currently owned by the OLG," the statement said. "If accepted, the offer would also end the costly litigation now underway between the company and the OLG."

Ontario Finance Minister and Windsor-Tecumseh MPP Dwight Duncan said he doesn't know what to make of Buttcon Energy's offer to buy the Windsor Energy Centre.

“I haven’t seen it yet, but oftentimes, these things happen when somebody’s worried about losing a lawsuit," Duncan said Wednesday.

Craig Clydesdale, the president of Buttcon Energy, says selling the plant to Buttcon – rather than fighting a lawsuit – will save the taxpayer money.

”If they win, the OLG is stuck with ownership of a power plant which they have no mandate for, which is stupid, and [if they] lose, they’re out a whack of money,” Clydesdale said.

Costs doubled

The centre was originally to cost $40 million. Instead, $81 million in public money has been spent, and the plant has yet to begin generating power.

Criticism of the provincial government's handling of the affair grew after a consultant's report obtained by CBC News earlier in November found the plant might be worth at best $21 million or at worst nothing if sold on the open market.

The preliminary financial analysis conducted by Cole Valuation Partners said the projected values are so low because the OLG miscalculated how much the centre would be able to sell its power for.

Buttcon Energy filed its lawsuit against the OLG, former OLG CEO Kelly McDougald and current OLG executive Larry Flynn on Aug. 31 alleging breach of contract, deceit and misrepresentation.

Buttcon, which designed and built the energy centre, says in its lawsuit that it had signed a contract to own and operate the centre for 18 to 38 years and accuses the OLG of delaying a purchase agreement.

The OLG denies Buttcon's allegations and any claims for compensation in its statement of defence and in a counterclaim filed with the Ontario Superior Court of Justice on Nov. 10.

It alleges that Buttcon breached the terms of its agreement by failing to properly design the plant, which the OLG claims cannot be safely connected to the local power grid.

Buttcon has now stopped operation of the plant, and the province hired Angus Consulting Management Ltd. in September to operate it temporarily.