Red Deer city council unanimously threw its support behind measures designed to help Westerner Exposition Association bounce back after years of financial challenges.
Council approved a $1 million contingency line of credit to be used in a financial emergency and only after Westerner had already exhausted a $1 million bank line of credit.
Repayment conditions were also relaxed for five years on a $19 million city loan to allow Westerner to freeze repayments until it had built up its cash reserves. It is expected Westerner will not start making payments again until the fifth year.
The city will also pick up half of the $100,000 cost of a Westerner Park 15-year master plan and change a Relationship Framework Agreement so that city manager approval would be required for any expenditures from a maintenance reserve designed to ensure there is money available for facility upkeep and unexpected expenses.
Mayor Ken Johnston and councillors all pointed to the important role Westerner Park has played in the community for decades. It is estimated it contributes about $150 million worth of economic activity annually.
Johnston said many of the financial challenges Westerner has faced can be traced back to the pandemic, which shut down facilities and revenue-generating events were cancelled. The pandemic also significantly weakened the connection between residents and the community and its events.
The mayor believes the Westerner is on its way back although challenges remain. “It’s one of those things right now where I think the potential is extraordinary there.”
Johnston said what some have called a “COVID hangover” has seen attendance remain stubbornly below pre-pandemic levels. He urged Red Deerians to support local events and return to venues and once again join other community members in sharing what the city has to offer.
“I think it behooves us all now in Red Deer and in central Alberta to realize that hey, let’s get back to the Westerner. Let’s do the things that we were doing in the past. Let’s embrace it and get it moving again. There’s a piece in this for all of us.”
Before voting, council members reflected on what the Westerner has meant to the community.
Coun. Bruce Buruma said Westerner Park has had a generational impact on the community.
“It’s not just what happens at the park, it’s the economic driver of so many things.
“It’s a key part of our community.”
Coun. Dianne Wyntjes also pointed to the huge economic impact of Westerner Park and its facilities.
“It would be catastrophic if Westerner Exposition Association was not in Red Deer.”
Coun. Vesna Higham said Westerner officials have made sweeping changes in the operations, lowering costs and boosting revenues and have implemented almost all of the 30-plus recommendations that came out of a report several years ago.
Red Deer Tourism’s goal of making the city the top mid-sized city event capital in Canada by 2030 will not happen without the Westerner, she added.
Many Red Deerians have donated money and their time as volunteers to support the Westerner, which plays a big role in the community, said Coun. Victor Doerksen.
“I can’t imagine our city without the Westerner.”
Coun. Kraymer Barnstable said Westerner is such an important part of the community it is difficult to imagine it not being here.
“You can’t really picture that. It’s such an integral part of our community in so many ways, shapes and forms.”
Michael Dawe said he “wholeheartedly supports” the help being given to Westerner, which does not free it of its obligations but allows it to move forward in a financially healthy way.
Westerner CEO Mike Olesen said council’s move will give it financial security for many years to come.
Olesen is expecting 2023 to be a better year with revenues in the range of $20 million, which puts it back on par with levels prior to the pandemic and after the Canadian Finals Rodeo was added.
“We’re just starting to get back to what we would say are our expected (revenue) levels and our desired levels.”
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