Regina council clears REAL to take on debt, develop long-term financial plan

Regina city council has cleared Regina Exhibition Association Limited (REAL) to take on more debt.

Part of the deal approved on Wednesday will havecity administration workto develop a long-term sustainability plan for the municipally-owned corporation whichruns the city's exhibition grounds, Mosaic Stadium, the Brandt Centre and Tourism Regina for council to considerahead of the 2024 municipalbudget.

Ward 4 Coun. Lori Bresciani took square aim at REAL and its leadership during remarks on Wednesday.

"This is our city entity. We own it and I would say I agree that city taxpayers are tired of having to bail this organization out," Bresciani said.

Bresciani wouldultimately vote in favour of the motion, saying that she wanted to have all the facts if council is asked to provide more funding in the future.

Ward 2 Coun. Hawkins disputed describing the decision asa bailout, saying this isREAL addressing business expenses.

Hawkins and Bresciani were joined by sixother councillors and Mayor Sandra Masters in passing the motion. Only Ward 7 Coun. Terina Nelson and Ward 8 Coun. ShanonZachidniak voted against the motion.

WATCH|Regina council clears REAL to take on more debt:

Regina council clears REAL to take on debt, develop long-term financial plan

1 year ago

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Council's decision means REAL will be allowed to access another $3.4 million in debt, a figure that will not push the organization over its current $21-million debt ceiling.

Council's decision means REAL will be allowed toaccess another $3.4 million in debt, a figure that will not push the organizationover its current$21-million debt ceiling.

The money will keep REAL outof the red in the short term. Without it, REAL wouldowe $6.9 million by September and be unable to meet payment obligations, according to a city administration report presented to council.

On Wednesday,REAL CEO and president Tim Reid was joined by REAL board chair Wayne Morskyand other officials with the organization to answerquestions from city council.

Reid has saidthe COVID-19 pandemic which restricted events and increased costs in the first quarter of the year hurt REAL's business model. Traditionally, REAL made money by attracting major events to the city.On Wednesday, Reid admitted that era may not come back.

"We should not be banking on major events [anymore]," he said.

REAL is on pace to meet its revenue targets this year, Reidsaid,but generally its profit margins are thin.

After council's vote, Reidtold media he welcomed the move from council and understood the frustration expressed during the debate.Reid said he welcomed the access to a loan, but saidthe last thing he likes to do is come in front of council and ask for assistance.

"It certainly allows us to operate in the ways we have in the past and so I'm really appreciative of the debate council had, the questions that were asked. These aren't easy conversations to have these days," he said.

REAL also carries more than $40 million in estimated deferred maintenance costs on city-owned assets.

Toxic spills data

On Wednesday, city council unanimously voted to approve a plan that will see annual reports be published on the toxicspills and leaks that occur in the city.

A year ago, the executive committee received its first annual report on the topic from the administration.

Wednesday's vote means the data will continue to be disclosed publicly but a report will be submitted to the city's executive committeebefore beingpublished on the city's open data portal.

The move is being welcomed by theFile Hills Qu'Appelle Tribal Council.

"Right now we recognize that the city is is being transparent and and recognizes the importance of environmental stewardship as it relates to waterways," said David Fortin, theenvironmental science lead with the File Hills Qu'Appelle Tribal Council.

Currently if a spill occurs in Regina, the city notifies its residents through its Notify Now alert system.Approximately 35,000 people are signed up for that system, according toKim Onrait, the city'sexecutive director of citizen services.

The city is now working with surrounding municipalities and nearby First Nations in order to help notify them if a spill occurs that will have an impact downstream.

The File Hills Qu'Appelle Tribal Councilis currently developing a formal process to inform its members when and if a spill occurs, Fortin told council on Wednesday. It wants to partner with the city to make that easier by being part of theNotify Now system.

"What FileHills Tribal Council will then do is take that message, apply it to their notification system and they will notify 18,000 members of their First Nations community,"Onrait said.

Integrity Commissioner investigative report

Council was scheduled Wednesday to respond to a report that suggested Coun. Andrew Stevens be punished for disclosing a confidential report andissue a written apology to Coun. Terina Nelson for having done so.

However, a late change to the council agenda means the topic will be discussed atthe June 7 meeting of city council.