Struggling REAL asking for $12.7 million from Regina city budget

Regina Exhibition Association Ltd (REAL) has put in its budget ask from the City of Regina for 2025 as it attempts to get its business back on right footing.

The arms-length corporation that controls REAL District has been struggling over the last couple of years, including facing questions about whether it will continue to exist.

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Now, the group has put in for $12,715,224 from the City of Regina for its budget in 2025.

That’s less than how much the corporation got from the city in 2024 — $17,575,000. However, the money in 2024 included more than $8 million to repay the Covid wage subsidy (CEWS) money REAL got during the pandemic, and $4 million approved by city council in October to pay down its line of credit.

It’s significantly less than the budget asks in 2023, 2022, and 2021 — $1,100,000.

“REAL anticipates that 2025 will be a year of further stabilization and business model rejuvenation as it works to improve its commercial viability.

“There is much work to be done to improve the financial situation REAL is in, and it will continue to require operational, working capital, debt financing and capital funding to continue to operate for the foreseeable future,” read the budget submission.

REAL forecast a $4.2 million loss for 2025, though the submission also said the budgeting was conservative “reflecting the absence of a major concert or event and a realistic approach to budgeting for its signature events: Frost, Canada’s Farm Show and Queen City Exhibition,” read the submission.

It said the corporation will try to offset those hits to the revenue by renewing leases this year closer to market rate, increasing prices, managing labour costs, cost savings in procurement, and reductions in discretionary spending.

The budget ask included $4,212,000 in annual operating funding, $2,715,000 to fund debt, $1,000,000 in capital funding, and $4,788,000 for what its report called working capital.

The $2,715,224 in debt funding includes $1.3 million in repayments, and $1.4 million in interest payments.

The $1 million for capital includes money for the Ag Exhibition Pavilion building, the Brandt Centre, Queensbury Centre, and IT software upgrades and a hardware refresh.

There are electrical, mechanical, and refrigeration system problems at the Brandt Centre which present significant risks around reliability and structural integrity, the REAL submission said (980 CJME files)

Maintenance and infrastructure fixes needed

The submission talks about the serious need for maintenance and infrastructure fixes in the facilities, and it said there are high-risk and potentially catastrophic problems with the Brandt Centre, Queensbury Centre, and Co-operators Centre buildings if they aren’t addressed.

There are electrical, mechanical, and refrigeration system problems at the Brandt Centre which present significant risks around reliability and structural integrity.

“A multi-year capital maintenance plan is essential for this facility, along with a clear future vision to guide both capital investments and ongoing maintenance decisions,” read the submission.

At Queensbury Centre, it said there are problems with the mechanical, electrical and accessibility systems which have all exceeded their expected service lives and have questionable reliability.

In the Co-operators Centre, the submission talked about the infrastructure of the building.

“The design and construction approach of this facility resulted in a roof structure with integrity issues. REAL constantly deals with leaking in both the arena areas and tenant spaces,” said the report.

The problems have been addressed with continuous repairs, maintenance and roof sealing but the submission said it needs a permanent resolution.

It warned the capital needs for REAL could get above $10 million in the next three years.

City council’s executive committee will consider the request at its meeting on Wednesday.

Council council will debate the full budget the week of March 17.

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