'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.