Exhibition asking City for millions to demolish pavilions
By Al Beeber - Lethbridge Herald on March 16, 2023.
LETHBRIDGE HERALDabeeber@lethbridgeherald.com
The Lethbridge and District Exhibition needs more than $4.6 million to proceed with demolition of the three existing old pavilions on site at the Agri-Food Hub and Trade Centre.
On Wednesday the Economic Standing Policy Committee of Lethbridge city council unanimously passed a motion calling on administration to work with the Exhibition to provide progress payment amounts for the requested funds, the current operating forecast and project milestones and timelines and to return to the April meeting of the SPC.
The motion also called on administration to amend the City’s current grant agreement with the Ex to include additional funding of $4,684,322.84 from the 2022-31 Capital Improvement Program funding held in reserve as matching funds for future projects.
Mike Warkentin, CEO of the Exhibition, told the SPC, which consists of all members of council, that the cost of the Agri-Food Hub project has escalated to about $80 million, $10 million over its projected budget.
The City of Lethbridge has already contributed $25 million to the project.
The extra money – if approved by council – will pay for the demolition of the existing structures.
Warkentin said, in response to a question, if the buildings aren’t demolished, that would pose significant challenges to parking for the new Hub and the Exhibition wouldn’t be able to meet expectations for the new facility.
He also said leaving the buildings up would not be a simple as shutting them down, saying there would be “significant operational challenges” to that option.
Warkentin said the money is needed for the project and while the Exhibition is in conversations with the province so far there are no other sources of government funding yet. Both the governing and Opposition parties are aware of the importance of the project, he said.
In response to a question from councillor Nick Paladino, Warkentin said there is some salvage potential from the steel and other materials but a value can’t be put on it until a demolition method is ascertained.
The CEO is forecasting a loss for 2023 and is working to mitigate that. He also said the Exhibition ended up in a loss position in 2022.
Due to COVID restrictions, the start of the business year in November of 2021 faced challenges when the Omicron virus hit and the Exhibition saw a drop in bookings. Among those hit were two major events early in the year which normally give a big financial boost to the organization. This came after masking restrictions were implemented right in the middle of 2021’s Whoop-Up Days which were rescheduled to September of that year.
The first steel started being installed at the new Hub in December of 2022 and as planning progressed for Whoop-Up Days, the Exhibition had to deal with COVID restrictions including limits to exhibitor numbers and the width of aisles.
The restrictions were lifted just before Ag-Expo opened, too late for the organization to seek other vendors.
The Exhibition was also impacted financially by low vendor and visitor attendance at last April’s Home and Garden Show, an event that is not being staged this year.
“It was a double whammy,” said Warkentin.
And just as Whoop-Up Days opened in August, the skies opened with downpours ending a dry hot summer. The return of pro rodeo was a bright spot, however.
Warkentin called 2022 a year of transition that for five months was impacted by the lingering impacts of COVID restrictions.
Follow @albeebHerald on Twitter
21-20
another public purse drain that returns wealth to a relative handful. enough! if not self sustainable, bye bye.