Following the first annual review of the Westerner Exposition Association (WEA) Relationship Framework Agreement (RFA), City Council unanimously approved several recommendations to assist The Westerner in regaining financial sustainability, while meeting existing loan agreement timelines.
Among these, Council approved the following recommendations by administration:
- In 2023, begin the development of a Master Plan for the Westerner, which is expected to cost $100,000. The recommendation is that this cost be equally split between The City and WEA. The Master Plan, recommended in the RFA, is a 15-year vision that will include land use, access and multi-modal transportation, building design principles and site servicing.
- Support short-term cash flow for the Westerner by providing a $1 million line of credit for WEA to cover expenses prior to realizing event revenue. This contingency loan is seen as emergency funds, with an expectation for it to be paid back once revenue is realized and only used after their current line of credit. At today’s meeting, Council approved first reading of the borrowing bylaw to accommodate this.
- 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." – Mike Olesen, CEO Westerner Park
“City Council remains committed to seeing the Westerner through these tough economic times, with the ultimate goal of creating financial and operating stability for Westerner Park ensuring we can continue to attract large events and grow as a City and region. While these are difficult decisions for The City, we are confident in the Westerner and the positive and vital role it serves in our community life, economic development, and its integral place in The City’s Major Event Strategy and Destination Development Framework. Our region and our province benefit from the influential role that the Westerner has, in bringing events to this province.” - Mayor Ken Johnston, The City of Red Deer
Funds approved today to support WEA do not impact The City’s budget, as dollars were earmarked during the 2023-2024 multi-year budget process. The approved recommendations look to balance the financial needs of WEA to regain solid financial footing, while also protecting The City’s investment should financial recovery not occur.
For more information on the support The City provides to WEA, visit www.reddeer.ca/westerner.