NEWS PHOTO COLLIN GALLANT
Stampede general manager Ron Edwards and incoming Stampede president Lori Siedlicki discuss a potential grandstand rebuild and event space expansion at the exhibition grounds with council on Monday night.
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A new proposal by Stampede officials looking to secure funds and a no-interest local from the city includes two options for badly needed grandstand renovations, as well as a potential joint management agreement until payback hurdles are met.
That would still require the City of Medicine Hat to provide an outright grant of $12 million to $15.6 million and offer a no-interest loan of either $6 million or $7.9 million.
Such a loan would be paid for with increased revenue from rentals and concession sales, but at different rates – and would require community effort to market the venue.
That’s where a joint board would come in, where organizations like tourism providers and others might be represented and help market to facility upgrades.
“The potential is there, but we’ll need to go out and find it,” said Stampede general manager Ron Edwards, who says a new position would be created to seek out conferences and events. “In our history, we’ve never asked the city for a thing, and now we need the new complex to keep doing that and bringing events to the city.”
Coun. Andy McGrogan is council’s representative on the Stampede board, and said a year later the project is more clear.
“I think we have a picture now of what it looks like,” he said. “I’m confident that with administration’s help we can come up with something.”
Council asked staff to further evaluate the feasibility and business case report, and provide funding options in the future.
The total budget estimate for the project, including additional banquet space tied into event rooms at an expanded Higdon Hall however, is about $4 million more than the $35-million figure stated in October 2023.
At that time, Stampede officials told council they have already secured in-principle funding from the province if it followed the same 40-40-20 funding model used in Lethbridge to pay for that city’s AgriFood Hub space.
Along with equal 40 per cent grants from the municipality and province, the city would also back a zero-interest loan to the agriculture society.
On Monday, Stampede officials presented updated construction costs, though councillors questioned lost income on the zero-interest loans, and other options.
“I understand that the province may want a 40-40-20 split, but honestly I feel the city faces higher risk here,” said Mayor Linnsie Clark, suggesting that if the city is expected to loan the Stampede 20 per cent of the project, perhaps 60 percent could be a loan.
Coun. Ramona Robins said city investments earned above 9 per cent return in 2024, and a multi-million dollar loan should be viewed as a loss of income.
As it is, the payback period could be more than 20 years, according to Stampede officials.
It states full-scope construction is estimated at $38.9 million, including grandstand work, an atrium-infill space to join Higdon Hall, roof deck and other site work.
A lesser option could lower the budget by $9.1 million by eliminating the banquet space, removing plans for additional seating on the south grandstand and leaving some areas unfinished.
However, that would provide different potential revenues.
The study cited the economic impact of the MHES at $15 million in 2023, while the new facilities would add $3.9 million, mostly in GDP growth, and smaller amounts in taxes and new wages.
This fall staff have repeatedly told council members during budget meetings that with an expected drop in in power prices through at least 2028, the city will need to protect reserve funds as much as possible to meet revenue shortfalls and keep construction on target.
The Stampede, as well as a potential addition of a south-side recreation facility, are not yet included in capital assumptions.
More budget discussions will take place tonight at a council committee of the whole before a final draft budget is presented on Dec. 2.
Coun. Robert Dumanowski has also voiced support for the Stampede organization.
“There are a lot of competing factors, but I’d hate to leave this to the next council when we have a year left in our term.
“Hopefully we’ll have an answer soon.”
Women’s shelter seeks funding as well
The Medicine Hat women’s shelter is also seeking capital support from the city for its $8.5-million modernization of the Phoenix Safe House.
Executive director Natasha Carvalho said Monday night in an address to council that the group has had a harder than expected time meeting its $6.5-million fundraising goal, especially among other levels of government.
“We know the first question will be what is the level of municipal support,” she said, adding that not-for-profit sector grants may be decided by the end of the calendar year.
“At that point you can expect us to come back with an ask,” said Carvalho, stating the request could be in the range of a one-third contribution, amounting to about $2.8 million.
