REAL asking Regina city council for another $4M

The City of Regina is one step closer to providing another $4 million to its financially troubled municipal corporation.

Regina Exhibition Association Limited, or REAL, isresponsible for putting on events, bringing concerts and drawing tourism to the city. It also operates the Brandt Centre, the Co-operators Centre and Affinity Sportsplex.

The organization is stretched to its limit with REAL set to max out its $6.7-million line of credit by October 2024 amid a financial downturn from the COVID-19 pandemic, a lack of major events and a business model that does not cover its expenses.

That's why REAL went in front of the city's executive committee on Wednesdayto askfor a$4-million operating grant that it will use to pay down the line of credit and allow it to have sufficient cashflow to continue operating into the first quarter of 2025.

"What I would say is this $4 million is literally required so that REAL can pay its bills and to set the next board up to continue the work of, I would say, moving REAL forward," said Regina city manager Niki Anderson, who also serves as the interim board chair of the organization.

Anderson confirmed that a list of potential candidates to helm REAL was set to be discussed at a private, in-camera meeting after Wednesday's committee agenda wrapped up.

Few councillors were happy at the prospect of handing over more money to the troubled municipal corporation.

This year, REAL has already received approximately$8 million from the city to pay back the Canada Revenue Agency for apandemic wage subsidy it inappropriately accessed.

That's on top of a $5.7-million budget for the organization this year.

Interim CEO Roberta Engelpointed to rising inflation, the lack of consistent signature eventsand the performance of signature events as a reason for the organization's poor financial health.

"Not funding REALwill have a tremendous impact on the staff we employ, on the vendors who we do business with, on the partners and sponsors that stand side by side with us, and to more than 20 businesses and recreation groups that call us home," Engel said.

Engel said REAL started resurrecting the decommissioning plan used during the COVID-19 pandemic in preparation for if the request for funding is rejected by city council.

Without the additional funding, REAL would be unable to meet its financial obligations including loan payments.

Since the City of Regina has guaranteed all of REAL's loans, the city would be responsible for the repayments. The outstanding loans owed by REAL currently total $16.7 million, according to a staff report.

Despite the concerns, a majority of councillors voted to approve the plan. Only Mayor Sandra Masters and Councillor Andrew Stevens voted against.

The $4-million grant still needs to be approved by Regina city council at its meeting on Sept. 25.