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REAL facing money crunch, seeks help from Regina council

Regina Exhibition Association Ltd. asking city for help as it seeks to acquire $3.4 million of debt
Miyo-wîcîwitowin Day 6
REAL CEO Tim Reid, seen at the Miyo-wîcîwitowin Day event last year.

REGINA - The Regina Exhibition Association Ltd. is in a money hole, and is seeking help from City Hall to navigate the situation.

Regina’s Executive Committee of council is set to hear a report Wednesday outlining the financial situation at REAL this year, and consider options to deal with it. 

According to that memo from the city, the cash flow position at REAL has been significantly impacted by COVID-19 and recovery is slower than anticipated. 

The memo states states REAL is going to be in a negative cash flow position of approximately $6.9 million by September this year, with its approved line of credit having been fully utilized. They note REAL will “be at significant risk of not having sufficient funds available to honour its payment obligations and will not have flexibility to manage any variances in its forecasted cash flow projections.”

It was noted REAL “continues to be impacted by low attendance numbers and attracting events to Regina.” REAL has also noted there have been “challenges securing entertainment due to aggressive competition from other organizations using financial incentives and other measures to attract events.”

The recommendation from administration is for REAL to be approved to acquire $3.4 million of debt within its already-approved $21 million debt guarantee, to manage cash flows to the end of 2023. Interest on a term loan is estimated around $17,000 a month, with administration recommending interest and principal payments on the term loan be paid by REAL and accounted for in their 2023 cash flow forecast.

As well, administration is calling for the current funding model for REAL to be reviewed, and to work with REAL on developing a strategy to address the organization’s long-term financial sustainability. This would be presented to council later on as part of Council’s 2024 Budget deliberations.

At this point, these are only recommendations from Regina administration and would need approval from Executive Committee on Wednesday, as well as from City Council.

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