Red Deer city council will consider on Monday whether to cast a longer financial lifeline to Westerner Park.
It is proposed that Westerner Exhibition Association (WEA) be allowed to freeze payments indefinitely on a $19 million loan council approved in 2021 to prop up the cash-strapped organization that runs Westerner Park.
"This suspension is intended to provide WEA additional time to achieve financial stability while recognizing its role in generating significant economic activity in the region," says the city in a Friday news release announcing the proposed amendment to the loan bylaw.
If approved by city council, loan payments will be paused until council decides WEA is in good enough financial shape to start repaying what it owes. Westerner Park lost $1.3 million in 2023.
"This suspension aligns with ongoing financial contributions and recovery planning efforts by The City, Red Deer County, the Province of Alberta, and other stakeholders," says the city.
City manager Tara Lodewyk said WEA oversees a venue that hosts 1,500 events and draws 1.5 million visitors annually and is a vital part of the local community and economy. It generates an estimated $150 million in economic spinoffs.
“This adjustment is not about reducing or forgiving WEA’s loan, but rather a change that gives WEA more time to recover as we remain committed to supporting their long-term success through collaborative measures and strategic investments,” said Lodewyk.
In July, the city, Red Deer County, the Donald family and Westerner Park Foundation announced they had committed $500,000 each in interim funding aimed at supporting Westerner Park operations while putting the facility on the path to financial self-sustainability. The city has given WEA about $8 million in grants over the years.
The WEA loan came about after the city agreed to borrow $19 million from Loans to Local Authorities, a provincial government office that provides lower-interest loans to municipalities for capital projects. City of Red Deer used the loan to buy out a $19 million WEA loan taken out with CIBC for construction of Exhibition Hall.
Under the terms of the Local Authorities loan, the city repays $460,000 two times a year for 30 years, which would work out to $27.6 million.
Council will consider first reading on Monday. If passed, second and third reading would be debated on Dec. 16.
Administration will also provide an update Monday on the Relationship Framework Agreement between The City and WEA, which was signed in October 2021. The agreement outlines collaboration guidelines to ensure alignment on key priorities and to maintain open communication.
Following the annual review, the city was satisfied that the agreement continues to meet its intended purpose, with only minor updates planned for 2025.
