Regina's 2015 debt may increase with new Evraz Place proposal

The City of Regina may be taking on more debt if it accepts a proposal put forward for the land the new Mosaic Stadium will sit on. 

Regina Exhibition Association Limited (REAL) is bringing that proposal to city council's meeting on Monday night. According to the formal letter REAL sent to council, the organization will ask the city to borrow up to $13 million and have "the city provide a guarantee for the debt resulting from the borrowing."

REAL is responsible for operations on Evraz Place land, where the stadium is being built. 

Much of that $13 million would go towards capital upgrades and maintenance of the Evraz property, with a remaining $4 million of that money going towards food and beverage equipment for the new Mosaic stadium. 

REAL says it expects to pay back $8.8 million of the requested $13 million within five years. 

The City of Regina plays a big role in REAL — it is the association's sole voting member since Jan. 1, 2014.

REAL became a municipal corporation on that day, with the designation meaning REAL must get city council approval "before incurring any debt obligations or completing borrowing." That means the city is ultimately responsible for debts that REAL takes on. 

If the proposal passes, that means the City's projected debt will increase to approximately $376 million. The City's current debt limit is $450 million. It says it will work within its Debt Management Policy to ensure long term financial sustainability. 

The capital cost of the stadium was initially pegged at $278 million after its announcement last year. 

The new home of the Saskatchewan Roughriders is expected to be fully operational for the start of the 2017 CFL season.