By Troy Gillard

Giving them a “fighting chance”

Council approves $2M operating grant for Westerner Park

Jul 8, 2020 | 9:16 PM

They discussed the matter for nearly seven hours behind closed doors and in open forum. In the end, Red Deer city council decided on Wednesday that Westerner Park was deserving of the chance to get their act together.

Council approved an operating grant of $2 million that will allow the Westerner to keep its lights on into 2021 while it works on getting its financial house in order.

That’s on top of the previous $1 million grant council approved back in January.

Westerner Park came to the city this time around seeking between $1 million and $3.5 million. $2 million was the amount recommended by city administration for approval.

Had council not approved the latest grant Westerner Park would’ve been left with enough of its own cash to survive until mid-August before closing its doors. Westerner Park currently has about $300,000 in monthly operating expenses.

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Councillor Lawrence Lee wanted his colleagues to approve a lesser $1 million grant while the city awaits the results of a forensic audit into Westerner Park’s finances, but his motion was defeated.

The City of Red Deer has contracted a third party to do the audit and financial sustainability report for Westerner Park. The results expected later this summer.

In making the pitch to council for the grant, Westerner Park CEO Mike Olesen admitted the organization got itself into this situation well before the onset of the COVID-19 pandemic.

“We have control over our expenses, where I would suggest that previously we did not,” he said.

Olesen described the pandemic as a “blessing in disguise” that allowed them to realize where they were broken and what needs to be fixed.

He said Westerner Park is re-negotiating contracts that have not served them well in the past, including the Canadian Finals Rodeo contract he admitted “probably didn’t make sense for the market we are in.”

Olesen stressed that Westerner Park is driven to getting back to serving the community ahead of themselves.

“We will win when more events are happening at Westerner Park,” he explained. “We truly feel our community is better with us than without us.”

Councillor Ken Johnston said there are no winners in a situation like this but felt it was important to “support an organization that’s admitted where it’s veered off the past, presented a vision (of) where it could go, and give them a fighting chance.”

Councillor Vesna Higham, who along with Lee voted against the operating grant, felt council needed to keep its mind open to all available options before offering more financial help.

One of the options she mentioned was the possibility of The City of Red Deer, which already owns the land where Westerner Park is located, assuming ownership of its facilities.

“I’m not supporting letting (them) go into receivership… rather a creative way of further investing by becoming the owner,” she explained.

Councillor Michael Dawe voted in favour of the grant, calling it a “calculated way of trying to deal with a very difficult situation.”

In casting her vote in support of the operating grant, Mayor Tara Veer said the city is in an untenable situation but she recognizes the “seismic impact” Westerner Park has on the regional economy ($100 million annually).

“I would rather have the audit information by now, but had we not had the pandemic we likely would have,” she noted. “I’m confident city administration will put very stringent conditions on the grant so that it’s a drawdown (as opposed to a handout).”

Everyone involved in Wednesday’s discussion acknowledged is that Westerner Park’s troubles won’t be fixed overnight.

“The westerner didn’t get sick in one day, and I’m not so sure it’s going to get well in one day,” said Councillor Buck Buchanan.

Councillors Tanya Handley and Frank Wong did not vote on the matter. Both declared conflicts of interest due to having recently served on the Westerner Park board.