'This is what they need to continue': REAL organization says it's at risk of having to close operations

Regina Exhibition Association Limited (REAL) says without a boost in city funding, it’s at risk of having to close operations.

“It’s the truth,” CEO Tim Reid told reporters.

Reid, along with REAL board chair and city manager Niki Anderson presenting their budget request to council as part of the second day of Regina budget deliberations.

“We would come and say, ‘There’s optimism’ or, ‘There’s going to be a great return,’” Reid said. “But the truth is our margins aren’t what they used to be.”

REAL originally requested $5.8 million from the city in a proposal on Nov. 14.

City administration recommended $2.5 million in grant funding on Nov. 17.

The following week, councillors debated the dissolving of the organization altogether, ultimately voting to remove the board of directors on Nov. 22.

REAL then brought forward a revised proposal Thursday under the interim board seeking $6,436,000.

“This is what they need to continue,” Anderson said. “The last two years, REAL has had to come back to council and ask for more money."

"We don't want to do that this year," she added.

The revised budget projected less-optimistic revenues in 2024, reducing projections by nearly $4 million from November’s proposal, leading to an extra $1 million in losses.

“I hope in the future, we understand more of the budget,” said Ward 4 Coun. Lori Bresciani. “Where is the spending? Where are the losses?”

“There’s all this talk of uncertainty and the need of [our] support,” said Ward 5 Coun. John Findura. “If we don’t – what’s next?”

The proposal broke down costs into three areas, $2.7 million for operations; $2.6 million for debt payments; and $1 million for capital.

However, the capital investments will not address the over $44 million in deferred maintenance costs.

REAL also found efficiencies which included reducing staffing by eight members, some at the executive level.

“We have to include the deferred maintenance in the greater strategy,” Reid said. “If [I] go away tomorrow – or the board goes away tomorrow – the city still owns those assets.”

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The request does not include funding for Tourism Regina, which was taken over by the city.

The grant was not voted on as its own item but instead was included in the city’s operating budget.

Council did not vote on the general operating fun Thursday. Deliberations will continue Friday.

‘THEATRICS IN THE MEDIA’

Reid believes REAL’s financial struggles are in the city’s ability to pull in large events.

“Tier one shows will play Winnipeg, Saskatoon, Edmonton, Calgary and B.C.,” he said. “Our venue struggles in its size.”

The November proposal used the likelihood of 14 special events to create its projection.

The revised proposal lowered that estimation to 10 as a more realistic target, according to Anderson.

“Are you hearing anything about nervousness from [entertainment acts]?” Findura asked.

“Yeah. We are,” Reid responded.

Anderson went on to add the city’s image has been tainted by the fall out of REAL’s struggles, including the naming of an interim board.

“Part of it is the theatrics going on in the public domain,” she said. “When you open the paper and seeing former board chairs writing things or allegations the interim board is illegal: those do not make our stakeholders feel confident.”

Ward 2 Coun. Bob Hawkins called out the city manager for her comments.

“I find it unworthy of the city manager when she refers to the ‘theatrics in the media’ and implicates the most prominent and respected citizens in our community,” he said to council.

Multiple other councillors then interjected, calling a point of order.

Hawkins had nothing further to say.