Mike Olesen, CEO, Westerner Park, addresses members of the Westerner Park Board of Directors, as well as staff and councilors with the City of Red Deer at the Holiday Inn Chalet at Westerner Park Tuesday morning. (rdnewsNOW.com/Sheldon Spackman)

By rdnewsNOW staff

FINANCIAL TROUBLES PROMPT MAJOR CHANGE

City of Red Deer assumes temporary financial management of Westerner Park

Jan 28, 2020 | 9:49 AM

The City of Red Deer is assuming temporary financial oversight over Westerner Park, a move both sides say was prompted by financial challenges being faced by the organization.

Officials say the move is being made in an effort to ensure the short, medium and long-term success of Westerner Park.

Westerner Park, which is a non-profit organization, drives over $150 million of regional economic activity through hosting events such as concerts, trade shows, weddings and banquets, hockey games and agricultural events.

However, the organization says they can no longer continue on its current course, leading them to ask the city for financial help.

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“As a key organization to the economic health of the region and from our commitment to the community, we are compelled to be open and transparent with the community in our current circumstances,” said Janice Wing, President and Board Chair of Westerner Park. “Westerner Park is facing some significant financial challenges, and it is important we tell the community what we plan to do about it.”

Officials say a number of factors ultimately led to the financial instability at Westerner Park, including the decision to expand the facility, major event contract negotiations and the current economic reality.

“The City will be working with Westerner Park to re-establish viable and sustainable business practices to stabilize the financial situation at Westerner Park,” said Mayor Tara Veer, “and we will maintain financial oversight until we are certain of financial stability.”

The City expects to have temporary financial oversight over Westerner Park for the next four to six months.

Westerner Park says it has already taken a number of steps to reduce financial pressures, including job cuts. As of Monday, 14 full-time equivalent and 24 part-time casual staff have been laid off. No further layoffs are expected at this time.

“We remain committed to serving our community through leadership and vision for a venue and community asset that connects people with each other and with their city in invaluable ways,” says CEO Mike Olesen. “Westerner Park is an economic driver in Red Deer and central Alberta, and I am confident, we as an organization, will overcome these challenges, continuing to serve the citizens who will live, work and play here for decades to come.”

Through the new arrangement announced on Tuesday, the Westerner Park Board of Directors will continue to provide overall direction to the organization while The City of Red Deer provides “support and oversight” to financial decision-making, and approval of Westerner Park’s annual budget ($14-15 million).

“The City of Red Deer is working to fully understand the complexity of the current financial situation. However, through this process, we endeavor to stabilize operations, which will include an in-depth joint audit with The City of Red Deer to fully assess the current financial situation,” said City Manager Allan Seabrooke.

The City owns the land at Westerner Park and is renting it to them under a 50 year lease.

It’s not known at this time whether any financial support for Westerner Park will have tax impacts. The City notes, however, that any financial support for the public would require approval from city council.

Currently scheduled events will continue as planned. However, Westerner Park says it is reviewing contracts related to key major events to ensure they are financially viable for the organization. This includes the 10-year contract for the Canadian Finals Rodeo.