Council wants more info from Stampede on funding ask
By James Tubb on November 7, 2023.
Collin Gallant
City hall won’t consider a multi-million request from the Medicine Hat Stampede for grandstand redevelopment until they feel the Stampede is more forthcoming about the financial costs and benefits of the project.
Council members voted 9-0 to have staff pause evaluating the funding request — for $15 million in grants and a $7-million interest-free loan — which was formally made last month.
At that time, councillors queried Stampede presenters about internal fundraising efforts, other capital needs, a business plan and other facets of the $35-million project before directing staff to evaluate the request.
A recommendation from senior city hall staff presented Monday was that since they still only have a partial picture of the financial plan, no action be taken until more information is made available.
“We’re been working for some time with the MHES,” said public services head Brian Stauth. “It’s difficult, if not impossible, for administration to make any sort of decision until we have the information from the MHES that we’ve asked for.”
Council members agreed, but stressed the decision is a pause, not a total shutdown of Stampede’s request.
“I know a lot about the project and support it, but we need that information,” said Coun. Andy McGrogan, council’s liaison with the Stampede board. “It’s not a ‘no’ but is a ‘we need the information to make an informed decision for the taxpayers of Medicine Hat.”
On Oct. 4, Stampede officials presented its plan, stating it was crucial the city get on board to help promote itself as part of the agri-food corridor being promoted along Highway 3 by other municipalities and the province.
They also told council they had secured a similar funding arrangement as the Lethbridge Exhibition’s $80-million, 270,000-square-foot, Agri-Food Hub and Trade centre.
Toward that project, the province paid 40 per cent of cost on condition the City of Lethbridge provided a similarly sized grant and extend an interest-free loan to make up the remainder.
The Medicine Hat project would see the aging north grandstand demolished and rebuilt (something the officials say is badly needed), the newer south grandstand would be renovated, a commercial kitchen added and a new extension off the back would add a 500-person hosting and event space.
But the board also said only several hundred grandstand seats would be added, and only minor fundraising had taken place.
Councillors said Monday they wanted more information on the potential benefits and plans for the work.
Coun. Ramona Robins said she is more focused on the ability of the Stampede to pay back the loan rather than the grant.
“I really want to support this and that they got provincial funding is substantial, but the information that we’ve requested is important,” she said.
Coun. Darren Hirsch had made a point in October at citing the city’s cost for providing an interest free loan, and stated his concern about the payback plan.
“The ask is big and I think about a lot of user groups in the community and their needs,” said Hirsch. “The pressure is mounting on municipalities in general to pick winners and losers because the pot of money is not endless.
“We all know what they contribute to the community.”
Single gas rate bylaw
City council has approved first reading toward approving a single rate for gas bylaw decision later this month.
That partly aligns with the single-rate system of billing approved for electric commodity prices but would base prices starting Jan. 1 on cost of gas purchased for resale to city customers plus a handling fee and profit margin of 7 cents per gigajoule.
That was presented at a committee of the whole meeting regarding the 2024 utility business plans, and will be dealt with at second reading on Nov. 20.
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