Regina council clears REAL to take on debt, develop long-term financial plan
Public disclosure of toxic spills and leaks also on agenda
Regina city council has cleared Regina Exhibition Association Limited (REAL) to take on more debt.
Part of the deal approved on Wednesday will have city administration work to develop a long-term sustainability plan for the municipally-owned corporation — which runs the city's exhibition grounds, Mosaic Stadium, the Brandt Centre and Tourism Regina — for council to consider ahead of the 2024 municipal budget.
Ward 4 Coun. Lori Bresciani took square aim at REAL and its leadership during remarks on Wednesday.
"This is our city entity. We own it and I would say I agree that city taxpayers are tired of having to bail this organization out," Bresciani said.
Bresciani would ultimately vote in favour of the motion, saying that she wanted to have all the facts if council is asked to provide more funding in the future.
Ward 2 Coun. Hawkins disputed describing the decision as a bailout, saying this is REAL addressing business expenses.
Hawkins and Bresciani were joined by six other councillors and Mayor Sandra Masters in passing the motion. Only Ward 7 Coun. Terina Nelson and Ward 8 Coun. Shanon Zachidniak voted against the motion.
Council's decision means REAL will be allowed to access another $3.4 million in debt, a figure that will not push the organization over its current $21-million debt ceiling.
The money will keep REAL out of the red in the short term. Without it, REAL would owe $6.9 million by September and be unable to meet payment obligations, according to a city administration report presented to council.
On Wednesday, REAL CEO and president Tim Reid was joined by REAL board chair Wayne Morsky and other officials with the organization to answer questions from city council.
Reid has said the COVID-19 pandemic — which restricted events and increased costs in the first quarter of the year — hurt REAL's business model. Traditionally, REAL made money by attracting major events to the city. On Wednesday, Reid admitted that era may not come back.
"We should not be banking on major events [anymore]," he said.
REAL is on pace to meet its revenue targets this year, Reid said, but generally its profit margins are thin.
After council's vote, Reid told media he welcomed the move from council and understood the frustration expressed during the debate. Reid said he welcomed the access to a loan, but said the last thing he likes to do is come in front of council and ask for assistance.
"It certainly allows us to operate in the ways we have in the past and so I'm really appreciative of the debate council had, the questions that were asked. These aren't easy conversations to have these days," he said.
REAL also carries more than $40 million in estimated deferred maintenance costs on city-owned assets.
Toxic spills data
On Wednesday, city council unanimously voted to approve a plan that will see annual reports be published on the toxic spills and leaks that occur in the city.
A year ago, the executive committee received its first annual report on the topic from the administration.
Wednesday's vote means the data will continue to be disclosed publicly but a report will be submitted to the city's executive committee before being published on the city's open data portal.
The move is being welcomed by the File Hills Qu'Appelle Tribal Council.
"Right now we recognize that the city is is being transparent and and recognizes the importance of environmental stewardship as it relates to waterways," said David Fortin, the environmental science lead with the File Hills Qu'Appelle Tribal Council.
Currently if a spill occurs in Regina, the city notifies its residents through its Notify Now alert system. Approximately 35,000 people are signed up for that system, according to Kim Onrait, the city's executive director of citizen services.
The city is now working with surrounding municipalities and nearby First Nations in order to help notify them if a spill occurs that will have an impact downstream.
The File Hills Qu'Appelle Tribal Council is currently developing a formal process to inform its members when and if a spill occurs, Fortin told council on Wednesday. It wants to partner with the city to make that easier by being part of the Notify Now system.
"What File Hills Tribal Council will then do is take that message, apply it to their notification system and they will notify 18,000 members of their First Nations community," Onrait said.
Integrity Commissioner investigative report
Council was scheduled Wednesday to respond to a report that suggested Coun. Andrew Stevens be punished for disclosing a confidential report and issue a written apology to Coun. Terina Nelson for having done so.
However, a late change to the council agenda means the topic will be discussed at the June 7 meeting of city council.
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