The Lethbridge & District Exhibition is seeking funding from the city and province. (Photo: LNN)

By Christian Oldale

Lethbridge & District Exhibition seeking emergency funding

Nov 29, 2023 | 1:04 PM

LETHBRIDGE, AB – Lethbridge & District Exhibition is looking for funding to avoid a potentially “critical” financial situation.

CEO Mike Warkentin brought a presentation to Lethbridge City Council on Tuesday, November 28, 2023, asking council for assistance. Warkentin was asking for either:

1. A $6.7 million grant
2. A $2 million grant, with a four-year debt deferral totaling $4.7 million, which would be paid when Lethbridge & District Exhibition’s loan is finished

Lethbridge & District Exhibition cited the impact of inflation, interest rates, supply chain issues and other lingering COVID-19 impacts as causes of the budget shortfalls.

They reported that additional capital costs, as well as the expense of maintaining the old pavilions, have led to them being unable to move forward without financial support.

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During the meeting, Council approved a one-year deferral of loan payments owed to the City at a cost of $1.16 million if the Province of Alberta agrees to fund the second half of the $2.08 million request.

Lethbridge councillor Rajko Dodic said, “Lethbridge & District Exhibition is a worthy project, and I continue to believe that and I’m hoping that the province will believe in it as we do, but believe in it in a financial way.”

Dodic added that the City of Lethbridge is not in an ideal position to fully fund it, as they have also been hit by the same market conditions.

He explained, “The City has had the same problems as the Exhibition has in terms of COVID and cost overruns and things like that, so the province is in a better position to fund a portion of the project than we are.”

As part of the approval, confirmed funding must be secured by December 11, 2023, one day before the next scheduled council meeting. If the province provides the funding, Lethbridge & District Exhibition will receive a debt deferral for two loan payments from the City totaling $583,000. The money will then be paid at the end of the loan in 2052 and 2053.

Speaking to media after the meeting, Warkentin said, ‘It’s obviously disappointing for us not having certainty today, but what I can say is that it is uplifting to know that there is optimism, and there’s a willingness to find a solution from the City of Lethbridge and a willingness to work together.”

The City of Lethbridge contributed $25 million toward the overall cost of the new Agri-food Hub and Trade Centre, while the province provided $27 million.

The Exhibition was also asking the City to take immediate control of the old pavilions on the site. City Council approved a third-party review of the Agri-food Hub and Trade Centre’s finances and operations.

The issue will be on the agenda for the Assets and Infrastructure Standing Policy Committee meeting on December 7. Members of the public will be able to voice their opinions.

READ MORE: Lethbridge News Now.

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