update: regina city council commissions report on possible future of real
the city will conduct its own review of possible options in the next year, including the ramifications of dissolving real entirely.
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the regina exhibition association limited (real) administration building at real district on sept. 17, 2024 in regina.
kayle neis
/
regina leader-post
regina city council has agreed to take a more in-depth look at how to clean up regina exhibition association limited’s (real) challenging financial situation.
coun. david froh (ward 3) brought a motion to wednesday’s council meeting that asked administration for a report on alternate ownership options for the arms-length municipal corporation.
city council voted unanimously in favour, tasking staff to deliver the report in the next 18 months.
the city’s review will examine the merits of partially folding real back into the city, dissolving real entirely or maintaining real but with a new governance model.
“in my mind, it’s unfair to ask (real’s) board to consider dissolution. that’s the job of council, to look at what that would mean,” said froh, following the meeting.
he said his intention with the motion was to provide a timeline for a decision on real’s future, as there remains “no clear short- or medium-term road map to a definitive picture for financial sustainability and public service for real.
“whether it’s run by the city, whether it’s run as municipal corporation, it’s too important for our community to relitigate (real’s) existence every single year,” said froh.
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“we all need certainty — the community needs certainty — and real needs a fresh start.”
administration’s review will be done parallel to real’s own internal examination, ordered by council in june. real has not yet returned with a short-term plan or long-term strategy.
mayor chad bachynski agreed that clarity is needed on real’s future for the city as a stakeholder, real as an operator and regina taxpayers.
he said it was a priority heard during the election, adding that he feels real’s campus is a valuable city asset delivering recreational services “that make our city vibrant.
“i think them being successful is imperative to holding on to that vibrancy,” he said. “we need to decide at some point here, what does that future look like, really put a pin in it and move forward based on real information, real data.”
real has also now been directed to provide monthly financial statements to the city, as a result of froh’s motion, to keep council better informed.
coun. george tsiklis (ward 2) and bachynski were appointed as non-voting members to real’s board as of march 1.
real running a deficit
the call to review the entertainment district operator follows public upset after documents revealed real has not made a profit since 2020 and a “sexist” tourism campaign scandal in 2023, when real was running tourism regina.
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real has received $22.3 million in operating funding from the city since 2023, of which $15.4 million was above-and-beyond the corporation’s budget in order to cover deficits.
this includes a $3.4 million debt restructure in 2023, a $4-million top-up in 2024 to cover operations, and $8 million to cover a pandemic subsidy clawback by the canada revenue agency.
last time the question of scrapping real was put before regina’s city council, they decided the move would put more financial pressure on the city than if real was allowed to right itself.
as third-party mnp consulting reminded in a 2023 report into real’s viability, the city of regina is real’s sole stakeholder and guarantor for real’s assets and debts.
should real default, the city would be responsible for taking over operating all facilities at real district, for the $16 million in accrued debt on real’s books and for another $44 million in deferred maintenance needs.
this new motion arrives in the lead-up to regina’s 2025 budget deliberations. a preliminary summary of budget details anticipates real will need $12.7 million in operational funding in 2025.
this would be a $7 million increase from 2024, equating to about a 2 per cent increase of the city’s overall mill rate.
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real warned city council it would need at least $12 million in funding earlier in the fall. a more detailed budget ask from real is expected ahead of budget talks set for march 17.
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