Red Deer city council helps Westerner Exposition Association towards financial sustainability
Red Deer’s city council unanimously approved on Monday several recommendations to help The Westerner regain financial sustainability and meet existing loan agreement timelines.
Following the first annual review of the Westerner Exposition Association (WEA) Relationship Framework Agreement (RFA), council approved the following recommendations by administration:
- Begin the development of a Master Plan for the Westerner in 2023 and equally split the expected cost of $100,000, not currently in the budget, between The City and WEA. The Master Plan, recommended in the RFA, is a 15-year vision including land use, access and multi-modal transportation, building design principles and site servicing
- Support short-term cash flow by providing a $1 million line of credit from the Operating Tax Supported Reserve for WEA to cover expenses before realizing event revenue. The contingency loan, they say, is seen as emergency funds, with an expectation for it to be repaid once revenue is realized and only used after their current line of credit. Council also approved first reading of the borrowing bylaw as a result
- Amend the repayment formula for the $19 million Exhibition Hall loan agreement for five years to allow time for WEA to retain sufficient cash to meet current obligations, improve cash flow and build their Major Maintenance Reserve. Administration projects that while WEA would not make a loan payment until the fifth year, there is no impact to the City’s budget or to the 30-year loan payment deadline
- Amend the current RFA to have the City Manager approve all expenditures from WEA’s Major Maintenance Reserve
“This decision made by city council is important as it is a representation of Westerner Park moving forward. We appreciate the leadership that council has shown in recognizing our work to recover and by putting their trust in our promising future. This support gives our Non-Profit Agricultural Society the security we need to thrive for many years to come, to continue to be the hub for major events in central Alberta,” said Mike Olesen, Westerner Park’s Chief Executive Officer.