(rdnewsNOW file photo)

By Troy Gillard

Mayor calls it a “generational decision”

Council approves $22M deal to save Westerner Park

May 11, 2021 | 9:27 PM

In what Mayor Tara Veer called a “generational decision,” Red Deer city council approved a deal to keep financially challenged Westerner Park alive in the short-term and viable down the road.

Council approved the $22 million financing package on the heels of a lengthy, emotional debate during a nearly-six-hour long special meeting Tuesday.

The package includes a $3 million grant and a $19 million loan for Westerner Park to pay back over 30 years.

“Council did not take the decisions made today surrounding Westerner Park lightly, and we recognize the broad community impact the legal agreement and financial support has,” said Veer. “Council is acutely aware of the economic, social and cultural importance of Westerner Park to our city and region; administration made the recommendations based on historic data as well as 10-year projections and we believe that we made an informed decision that considers and benefits our community as a whole.”

It was in late 2019 when Westerner Park informed The City of Red Deer about its dire financial situation. The City then assumed financial oversight of the organization in January 2020.

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An independent audit conducted last year highlighted a questionable decision to build Exhibition Hall during a recession and based on overinflated revenue projections. Westerner Park took an even harder financial hit with the cancellation of events due to the COVID-19 pandemic.

The $3 million grant will be funded through Operating Reserves – Tax Funded, and will not impact property tax bills for Red Deerians. Had council not approved the grant, Westerner Park would have run out of operating cash by mid-June, leaving the condition of the 130-year-old organization grave.

“If we lose Westerner Park, we would not just lose 130 years of history, the upset would be seismic to the community,” Veer said.

The $19 million loan will be funded through debt resulting in The City of Red Deer needing to revisit the capital plan during budget deliberations this fall. The loan is intended to pay out an unsustainable loan Westerner Park currently holds with CIBC for the construction of Exhibition Hall. Westerner Park is to repay the first $10 million on a set schedule and the remaining $9 million as the organization’s revenues allow.

Tuesday’s debate amongst council was around how exactly the financial assistance to Westerner Park should look.

Councillors Vesna Higham and Lawrence Lee tabled an amendment to decrease the grant amount to $1 million and add the remaining $2 million onto the loan. Veer and Councillor Frank Wong supported the amendment, but it was defeated in a tie vote with councillors Buck Buchanan, Michael Dawe, Ken Johnston and Dianne Wyntjes voting against. Councillor Tanya Handley was absent from Tuesday’s meeting.

“These numbers were not picked out of the air,” said Dawe in reference to the extensive work done by administration in preparing the recommendation.

Tuesday’s decision by council came four weeks after they tabled voting on the same recommendation in order for city administration to find answers to several questions. A further delay by council would have risked a decision not being made ahead of the deadline for the next provincial loan period in July.

Council also agreed to have The City cover 50 per cent of the $250,000 cost for a consultant to review the state of Westerner Park’s facilities, along with a management plan for maintenance and upgrades.

Also approved was a new agreement that will give The City a higher level of involvement in decision-making, oversight, budgeting, lease agreements and other major items relating to Westerner Park.

One of the main items in the Relationship Framework Agreement is the development of a Master Plan for Westerner Park to establish the 15-year vision, land use concept, multi-modal transportation plan, building design principles and site-servicing concept.

Council narrowly defeated an amendment requiring city council members sitting on the Westerner Park Board of Directors to report back to city administration on any “critical” information disclosed during closed board meetings.

City Manager Allan Seabrooke said he’s proud of the work City staff put into the package and is confident it will help Westerner Park thrive moving forward.

“I think some very wise, good long-term decisions were made today for the benefit of our community,” he said.

“I think everybody is going to be anxious to get back to enjoying the life that we all know and Westerner Park is a big part of that… They are poised and ready to welcome everyone back. And we’re very confident that they will come out of this even stronger than they were before the pandemic.”

“(It) isn’t just about protecting the land and the assets at Westerner Park and the community life that’s built there, but ultimately about the economic, the $150 million of economic spinoff for hotels and restaurants and retailers, arts and sports, and cultural groups,” Veer added.

“So even though it was difficult to arrive at, I’m pleased that council was able to arrive at a unanimous decision, and that we chose to preserve Westerner Park’s future, and to protect this asset for our community.”