By Troy Gillard

Proposal calls calls for increased oversight

Council to consider $22M Westerner Park deal

Apr 20, 2021 | 9:06 PM

At a special meeting this Thursday, April 22, Red Deer city council will consider a new agreement to keep financially challenged Westerner Park alive.

A proposal from City Administration calls for increased involvement from The City of Red Deer in legal and financial decisions for Westerner Park to ensure its operating stability moving forward.

It also proposes financial support to the tune of $22 million to address the short-term operational needs and long-term sustainability of Westerner Park.

“In 2019, Westerner Park notified us about their financial instability, and we have since been working with them to ensure they not only survive the economic downturn and global pandemic, but thrive when in-person events and entertainment can resume,” said City Manager Allan Seabrooke. “We are recommending financial support, and a Relationship Framework Agreement inclusive of an updated Master Plan and an Asset Management Plan.”

The first item being recommended is a $3 million cash investment in the form of a grant to ensure continued operations of Westerner Park through the pandemic. A $19 million capital loan is also recommended to enable Westerner Park to pay out an unsustainable loan they currently hold, related to the expansion of Exhibition Hall.

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If approved, the proposed $3 million grant is not expected to impact property taxes as it would be funded through the operating reserve. However, the $19 million loan would be funded through debt, and with the proposed payback plan, there would need to be adjustments to The City’s overall capital plan to accommodate this funding.

Without the support of The City, officials say Westerner Park cannot continue to operate based on current capital and operating projections.

“It is unfortunate that The City has to consider doing this, but ensuring the success of Westerner Park is mutually beneficial as it drives $150 million in economic activity annually when normal operations are possible. Westerner Park is an important part of the region’s economic recovery and long term community resiliency,” said Seabrooke, who noted the recommendations are based on seven years of data.

The recommended Relationship Framework Agreement would see The City of Red Deer have a “higher level of involvement in decision-making, budgeting, lease agreements and other major items relating to Westerner Park.”

The proposed relationship agreement also outlines expectations on roles and processes for completing a Master Plan for Westerner Park. The plan is expected to establish the 15-year vision, land use concept, multi-modal transportation plan, building design principles and site-servicing concept.

An asset management plan will be developed to ensure all infrastructure on the grounds is maintained. This plan will provide a guide for capital investment to support the long term planning for the site.