City council approved emergency resources for the Lethbridge and District Exhibition to create stability for the new Agri-food Hub and Trade Centre operations. The decision came out of a nearly eight hour special council meeting on Dec. 18, with the majority of the discussion being in closed session.
The city will provide the Exhibition an emergency operating grant of $250,000 immediately and up to $950,000 in contingencies, which will be held under city control to be approved for emergent needs.
An interim governance body will be implemented for the Exhibition with no previous board members. It will be comprised of city administration and admiration from Lethbridge County, if county council approves.
Up to $300,000 will be spent on a third-party review of the Exhibition’s planning and finances. Funding of $850,000 was also approved for contract or term positions to support backfill of key City resources. There will be regular reporting to the economic and finance committee.
The city will develop a memorandum of understanding with the Exhibition before Jan. 19, 2024.
“The other items that are included in this resolution does put council, through our administration, firmly in the driver’s seat with access to all the information that I think we need to move forward and the third party review I think will allow us the best information possible,” said Coun. Jeff Carlson.
Coun. Rajko Dodic spoke against the resolution and said he believes it is postponing an inevitable situation. He said he believes the expenses will outweigh revenue for the foreseeable future and the building itself is not what it was pitched as.
“It is not too big to fail and I suspect that is where we are heading. The newly opened building on the Lethbridge Exhibition’s site has become something other than an agricultural based facility,” Dodic said. “The vision of an agrifood hub has been replaced, in my humble opinion, by a too grandiose, too large and too expensive edifice that will unfairly compete with private local businesses for events which we are seeing right now, such as weddings and Christmas parties, rather than bringing in new business based on agri-business.”
BACKGROUND: Exhibition could face ‘critical’ financial situation if province does not help with un-budgeted costs
Most councillors expressed distaste for the resolution, but noted it is the best of all the terrible options.
“What our administration is doing is trying to make the best of a very difficult situation. We, council and administration, are not the authors of this situation but we are responsible for leadership and that is what we must provide,” said Coun. John Middlton-Hope. “I am not happy with this motion but the other options are much less palatable. There are several safety mechanisms that are included in this program to reduce the likelihood of a worse outcome.”
The Exhibition parted ways with its CEO before council made the decision. The changes stem from un-budgeted expenses, which the organization asked council to help fund. Both council and the provincial government turned down the funding request from late last month, leaving the organization facing an uncertain future.
BACKGROUND: Lethbridge & District Exhibition part ways with CEO