Lethbridge residents had a chance to voice their opinions on the new Agrifood Hub and Trade Centre financial situation this week. The issue was before the Assets and Infrastructure committee on Dec. 7. It was put on the agenda after the Lethbridge and District Exhibition presented to city council on Nov. 28, where CEO Mike Warkentin asked council for financial assistance to cover budget overruns.
BACKGROUND: Exhibition could face ‘critical’ financial situation if province does not help with un-budgeted costs
Council decided at that meeting it would provide $1 million, only if the province commits to contributing $1 million also before Dec. 11. If the province commits the money, the city will also give the Exhibition a debt deferral for two loan payments, totaling $583,000 – which will be paid at the end of the loan in 2052 and 2053 and $500,000 to cover operating costs of the old pavilions on site.
Transparency about the financial situation came up from multiple speakers. At the committee meeting. CEO of the Lethbridge Chamber of Commerce Cyndi Bester pointed out there have been more than a dozen presentations from the Exhibition to the city since spring last year, but most of them were in sessions closed to the public.
“It is interesting to observe that communication seemed lacking between the Lethbridge and District exhibition park, City of Lethbridge administration and city council. Transparency was stressed in this chamber last week, yet I find it troubling that the community perceives a lack of it,” Bester said.
Bester said she wants to see the city to consider the difference between running the facility with city staff versus private sector. “It is crucial to understand how this could affect potential tax rates for citizens,” she said.
Contingent on the province providing the requested assistance, the city will spend up to $300,000 on an independent third-party review of the Lethbridge and District Exhibition’s operational planning and financial decision making.
During the presentation late last month, city staff pointed out that the ask from Exhibition on the surface was a total of $6.7 million, but below the surface it could be closer to $31.3 million over time. This was calculated based on many factors, including the city taking over operating costs of the old pavilions and money for repurposing or demolishing them.
Mayor Blaine Hyggen is not a voting member of the committee but sat in to ask questions. He addressed the perceived lack of transparency.
“I want to tell you why we had those closed meetings. We didn’t want to be here today. By having those closed meetings, we tried to delay this today and the reason we had the closed meetings is so that out in the public they weren’t saying, ‘gosh this place is going to close down – we better run far from it,’” he said. “We had these meetings in closed specifically to try to alleviate some of these concerns out in the community.”
He expressed a desire to release information from closed sessions and addressed concerns that the city is not supportive of the project.
“We all support this project if it was what we were told it was going to be when it was first presented to us. Things have changed and this is why we are here today,” he said. “If it was moving along like we were told a few years ago when this support came through from both ourselves, the province and Exhibitions, we wouldn’t be here today – we would be hearing how wonderful things were and all of the revenues that were coming in.”
There has been no official word from the province on funding so far and the matter is on the agenda for the closed portion of the Dec. 12 meeting.