REGINA - A familiar topic is expected to return to Regina city council next week, and that concerns what the future holds for Regina Exhibition Association Ltd.
According to the draft agenda for the Feb. 12 meeting posted on the City's website, a motion has been submitted by Ward 3 Councillor David Froh. That resolution would direct Administration to bring forward options for the restructuring of REAL that considers the financial stability of REAL as well as the community benefits. It also calls for that report to consider revised ownership and control options.
According to the resolution wording those options include, but are not limited to, fully or partially integrating REAL physical assets and operational responsibility directly into the City of Regina; dissolving REAL as a municipal corporation resulting in the City of Regina taking over REAL assets and operational responsibility; or maintaining REAL as a municipal corporation but advancing financial efficiencies associated with reducing REAL management positions and costs and developing a new governance and business model which provides effective public services and efficient stewardship of public dollars.
The resolution also calls for administration to bring forward options within 18 months or earlier, and to direct the REAL board to provide City Administration with REAL’s monthly financial reporting on a monthly basis.
The question of whether to dissolve REAL as a municipal corporation is one that was raised at council in the last term, given the ongoing financial struggles and other turmoil facing the organization.
That ultimately did not come to pass, as last year council opted to continue to run REAL as a municipal corporation and approve a refreshed business model. But financial viability remains an ongoing issue.
A report from consulting firm MNP in Nov. 2023 called into question the organization’s viability, stating REAL was not financially self sufficient and would keep on losing money.
During the previous term REAL had to go to council for approval of $3.4 million in debt in 2023. They were also approved for $4 million last fall to pay down their line of credit.
According to the council motion’s preamble, a report from MNP from Nov. 10, 2024 pointed to REAL having a negative Earnings Before Interest Taxes Depreciation and Amortization of $18.4 million, and a total deficit needing to be covered by profitable activities of $17.75 million, MNP also pointed to the need for REAL to increase revenues and reduce fixed labour costs by 30 to 40 per cent each just to break even.
It is expected we will learn more about where new Mayor Chad Bachynski and the new council stands regarding the future direction of REAL when the issue comes to council, likely at the Feb. 12 meeting.
