Regina city council to consider dissolving REAL

Questions about the ultimate fate of the Regina Exhibition Association Limited (REAL) were raised during Wednesday’s executive committee meeting.

Council might consider dissolving REAL and absorbing it into the city after a motion forwarded by Ward 4 Coun. Lori Bresciani carried 5-4.

REAL is responsible for events like the Queen City Exhibition, Canadian Western Agribition, and the Frost Festival.

The organization also operates Mosaic Stadium and the Brandt Centre.

Councillors Bresciani, Dan LeBlanc (Ward 6), Terrina Nelson (Ward 7), Cheryl Stadnichuk (Ward 1) and Andrew Stevens (Ward 3) voted in favour of the motion, while John Findura (Ward 5), Bob Hawkins (Ward 2), Jason Mancinelli (Ward 9) and Mayor Sandra Masters voted against it.

“We’ve already absorbed (Tourism Regina) back into administration,” Mancinelli said during the meeting.

“It’s yet to be facilitated. It has to be planned out and staffed and all the work (that goes) around that. To absorb (REAL) as well, with everything to be worked through, in light of what we have coming at us for budget, to me is unimaginable.

“I don’t think a quick reaction to this is very wise in my eyes.”

Executive committee was discussing REAL’s request for $5.876 million from the city for the 2024 budget — a significant increase from the $1.1 million that REAL had received in each of the three previous years.

The committee also discussed the findings from an independent review of REAL’s financial outlook.

In May, the city hired MNP, a third-party accounting firm, to take a look at REAL’s finances and analyze its operational structure as part of an approved $3.4 million debt restructuring.

According to MNP’s report, REAL’s current business model is not self-sufficient in the short or medium terms and the group predicted operational losses over the next few years if things continue as is.

MNP also said REAL’s existing debt obligations exceed $17 million.

“Our ultimate goal is to explore the long-term financial sustainability of REAL and if there’s one central theme to MNP’s conclusion — it’s that for REAL to become financially self-sufficient, we must seriously consider significant changes to the business model,” Anderson said at the start of Wednesday’s discussion.

Masters told reporters after the meeting that she had voted against Bresciani’s motion because she wanted all options explored, but said her concerns were assuaged after the vote by following up with MNP’s Craig Kutarna Gates and City Manager Niki Anderson who said MNP will continue to have their services employed.

“I think all options should be on the table and should be investigated,” Masters said.

Should REAL’s request for additional funding be denied by the city, it would proceed with a three-phase plan to reduce expenses.

Phase I included ideas like halving the executive team and security while Phase II suggested things like selling Canada’s Farm Show, reducing $500,000 of QCX’s programming investment and getting rid of Frost Regina, a winter festival that was introduced in 2022.

Phase III included measures like halving custodial services.

Masters said MNP will continue to work with the city going forward.

When asked about REAL’s request that was submitted before Wednesday’s meeting, the mayor said it was inappropriate for debt to be taken on civic assets without the ability to borrow over a longer repayment period.

A motion was passed 7-1 in favour of directing REAL to work with city administration to prepare for Dec. 13 which is when budget discussions are planned to happen.

A final decision on REAL’s request is expected to happen then.