Medicine Hat Exhibition & Stampede general manager Ron Edwards addresses city council during discussions of a potential $20-million public grant that would be conditional on provincial support but eliminate a proposed loan in favour of fundraising.--News Photo Collin Gallant
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City council has paused a decision on multi-million-dollar request from the Medicine Hat Stampede until later this winter – after a report on provincial support for major agriculture societies is due, as well as the provincial budget.
Approval at that time could see the city offer to pay half of a $40-million grandstand renovation and expansion, but contingent on provincial dollars, a local fundraising effort and in exchange for stronger hands-on project management.
That comes after three years of behind-the-scenes discussion and a public request in late 2023 for the city to provide 40 per cent of the cost to rebuild one grandstand and renovate another, plus replace a commercial kitchen and add hosting space in an effort to boost revenue.
Councillors voted 6-1 in favour of a staff recommendation to hit pause, while another sets a 40 per cent provincial grant as a key condition,
“I’m crossing my fingers and toes,” said Count. Cassi Hider. “I think we all want to work with the Stampede together to make some progress.”
Coun. Robert Dumanowski voted against the pause, but spoke most strongly in favour of getting an agreement done.
“Obviously we’re waiting for the province, but I have to say there is growing frustration with what’s another delay,” said Dumanowski. “Without us (the city) coming to the table in a real meaningful way, there are two outcomes: One the MHES shuts its doors (without a new grandstand) … or they hand the keys to us and we’re then in charge. I guarantee that’s not viable.”
Stampede officials made a formal public request in late 2023, stating the decades-old wooden stands are on their last legs, and event space is needed as a new revenue stream.
Earlier this year, Stampede officials told the News they needed an answer soon to capture the 2025 construction season and move ahead before engineering studies expired.
On Monday, staff recommended the city wait to hear a report the province has commissioned on the financial sustainability of agricultural societies across the province.
Stampede general manager Ron Edwards said the organization is debt free, could add revenue with new space and renovations, but requires municipal support – which he implied the provincial government’s report will suggest.
“I’ve been here three or four times, and I appreciate that we’re still here,” said Edwards. “I didn’t think this would hinge on the (province’s) report, that’s for sure … There are few organizations that bring as much economic activity into the city.
“We know what we can do (on fundraising), but we need some assurance that the city will be there.”
A formal response will be outlined at a press conference Tuesday morning.
Aside from the report, the province is set to deliver a provincial budget shortly after the legislature reconvenes at the end of February.
“I hope it’s good news, and sooner rather than later,” said Coun. Allison Knodel, while Coun. Alison Van Dyke added, “It’s been a long road, but it’s a lot of money.”
Coun. Andy McGrogan said the potential $19.5-million outlay presents the largest funding request from an outside agency in the city’s history.
City council heard in the fall of 2023 that the Stampede had obtained a promise of provincial funding similar to a deal that saw the Lethbridge Agri-Hub move ahead two years earlier.
That 100,000 square-foot conference centre and trade show space was built by the Lethbridge regional agricultural society, but the project ran over budget, which pushed the municipal portion off a 40-40-20 funding agreement.
The local item recommends Medicine Hat pay for half the costs of the total project, about $20 million from reserves. That would be 10 per cent more than requested, as a grant, but it would avoid providing a no-interest loan to the MHES to cover its 20 per cent share of the costs, as initially proposed.
Instead, a condition is that the MHES solicit funds from other jurisdictions to secure the funding, or pay its share of the project, now 10 per cent, or $4 million.
Other conditions would be developing a project charter, assumedly outlining how overruns would be funded, the hiring of a project manager and a permanent city seat on the Stampede’s board.
Public services managing director Joseph Hutter said the business case doesn’t clearly state Medicine Hat is lacking in convention space, and therefore, loan repayment is doubtful.
Coun. Darren Hirsch said that in his mind he couldn’t vote for a city loan to an organization that couldn’t prove it could repay the loan.
“The question is how to get there protecting the City of Medicine Hat and having the Stampede demonstrating to the public that it’s needed. Neither of us want to go sideways on this.”
