'Tired of bailing this organization out': Regina city council approves more debt for REAL
The Regina Exhibition Association (REAL) can now pay its bills after city council approved the organization to access $3.4 million in its line of credit.
REAL forecasted a $6.9 million negative cash flow by September if it was not granted approval to increase its debt.
“The ability to access the funding that is in place was needed,” said REAL CEO Tim Reid.
As a city-owned organization, REAL must request council approval to incur debt.
Following the approval, REAL has just $700,000 remaining in its $21 million maximum allowable debt.
“We never anticipated the impacts of COVID-19,” Reid said. “The biggest challenge is our business model fundamentally changed coming out of [the pandemic].
At the May 17 executive committee meeting, Reid told council REAL relied on “one big event per year” to run a profit.
Councillors believe the model is unsustainable.
“There’s a lot of information people feel we don’t currently have,” said Ward 8 coun. Shanon Zachidniak.
“[REAL] needs to provide information about the efficiencies [it has made]. I would be more comfortable having that information before moving forward,” she said.
REAL is also preparing for the loss of a $2.6 million per year contract with the province. A “casino grant” was created with the organization in 1987 when it consolidated its assets in Buffalo Buck Casino with Casino Regina.
Administration also recommended the city pays for “any interest and principal payments on the term loan,” meaning there would be added costs to tax payers.
“How much is that?” asked Ward 3 coun. Andrew Stevens.
“Potentially a maximum of $1 million,” said director of financial sustainability Barry Lacey.
“I was elected in 2016 and we’re still talking about the same problems we had then,” said Ward 4 coun. Lori Bresciani.
“Taxpayers are tired of having to bail this organization out,” she said.
The next step for REAL is to draft a report on its long-term financial sustainability with a third-party financial auditor, in collaboration with the city administration.
“I want to ensure this isn’t just another big 30-page booklet that comes out with some recommendations,” Bresciani said.
The report will come back to council prior to 2024 budget deliberations before council makes decisions on any additional supports for REAL.
CTVNews.ca Top Stories
NEW Biscuits with possible plastic pieces, metal found in ground pork: Here are the recalls for this week
Here are the latest recalls Canadians should watch out for, according to Health Canada and the Canadian Food Inspection Agency.
Parents of infant who died in wrong-way crash on Ontario's Hwy. 401 were in same vehicle
Ontario’s Special Investigations Unit has released new details about a wrong-way collision in Whitby on Monday night that claimed the lives of four people.
More than half of Canadians say freedom of speech is under threat, new poll suggests
A new poll suggests a majority of Canadians feel their right to freedom of speech is in danger.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Wally, the emotional support alligator once denied entry to a baseball game, is missing
Emotional support animal registrations in the United States reached 115,832 last year, by an industry group’s count. But in the eyes of reptile rescuer Joie Henney, there’s only one: 'Wally Gator.'
BREAKING Feds giving Toronto more than $104M to host 2026 FIFA World Cup
The federal government will provide Toronto just over $104 million in funding to host the 2026 FIFA World Cup.
Tiger Woods gets special exemption to U.S. Open at Pinehurst
Tiger Woods accepted a special exemption for the U.S. Open at Pinehurst No. 2, the first time the three-time champion has needed an exemption to play.
'Bare-adise' adventure: This nude cruise is due to set sail from Miami in 2025
What do you need to pack for a cruise? When it comes to this upcoming cruise from tour and travel company Bare Necessities, the answer appears to be very little.
Drew Barrymore explains how she accidentally left a list of her romantic partners at Danny DeVito's house
Danny DeVito had the opportunity to know way more about Drew Barrymore than the rest of us.