'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
Israel strikes crowded neighbourhood in Beirut as part of its biggest attacks on Lebanese capital since start of the war
Israel strikes crowded neighborhood in Beirut as part of its biggest attacks on Lebanese capital since start of the war.
Loonie falls to lowest since 2020 after Trump threatens tariffs on Canadian goods
The Canadian dollar fell to its lowest level since May 2020 after Donald Trump threatened to impose tariffs on Canadian goods shipped to the United States once he takes office in January.
As Trump vows major tariff hike, a look at what the U.S. imports from Canada
Some Canadian products could face huge tariffs on the first day of Donald Trump's administration in January. Here’s a quick look at what the U.S. imports from Canada.
Canadian government suspends contracts with Boissonnault's former company
The medical supply company co-founded by Liberal MP and former minister Randy Boissonnault has been suspended from bidding on or entering into contracts with the Government of Canada.
DEVELOPING Follow live: Notorious killer Paul Bernardo seeks parole
Paul Bernardo, one of Canada’s most notorious killers, is seeking parole at the medium security La Macaza Institution in Quebec. He was transferred there from an Ontario maximum-security prison last year, to significant public outcry.
Longtime member of Edmonton theatre community dies during 'A Christmas Carol' performance
Edmonton's theatre community is in mourning after an actor died during a performance of "A Christmas Carol" at the Citadel Theatre on Sunday.
Violence in Montreal had nothing to do with pro-Palestinian cause: police chief
Montreal's police chief says it's 'impossible' for protest organizers to prevent people bent on violence from infiltrating demonstrations.
They thought they'd found Amelia Earhart's plane. Instead, the search continues
The disappearance of pioneering aviator Amelia Earhart more than 87 years ago has remained one of the most captivating mysteries in history, with a handful of explorers devoted to scouring the seas for any clue to her final whereabouts.
DEVELOPING Trudeau confirms premiers meeting, Poilievre calls Trump tariff threat 'unjustified'
Prime Minister Justin Trudeau will be convening a meeting of all of Canada's premiers 'this week' to discuss U.S. president-elect Donald Trump's intent to impose a 25 per cent tariff on all products from Canada and Mexico on his first day in office, if border issues aren't addressed.