Medicine Hat Stampede general manager Ron Edwards and board president Lori Siedlicki told reporters Tuesday they require a decision soon on city financial support for a grandstand renovation.--News Photo Collin Gallant
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Stampede officials aren’t happy with a further delay in funding talks with the city on grandstand expansion, but see a now set timetable and conditions as a step forward on the issue first proposed four years ago.
“It’s not the outcome we were hoping for, but we’re hopeful that there’s a proposal and scenario and they’re willing to work with us,” board president Lori Siedlicki told the media on Tuesday.
That came one day after a council vote to pause a decision on funding up to half the $39-million project until after a provincial report on the financial health of the agricultural society model (the Stampede is an ag society), and assurance that a matching provincial grant is in place.
City council voted 6-1 in favour of the pause, with Coun. Robert Dumanowski lodging a protest vote for a quicker decision. Mayor Linnsie Clark and Coun. Ramona Robins were absent.
City staff also proposed a number of potential funding models for council to consider for its internal financing, including cash for up to half the project, but also options for staged construction to replace and improve grandstands on the fair grounds and add hosting space.
A recommended, though not approved, option suggests foregoing a requested $8-million loan with an additional $4 million in an outright grant, but requiring the resulting $4-million shortfall be made up through Stampede fundraising, or grants from neighbouring municipalities.
Siedlicki said fundraising has been explored, likely to provide some flexibility paying off the proposed loan.
“The proposal has been very difficult to develop over the years with this uncertainty,” said Siedlicki.
Such a fund would help the city preserve its own capital accounts, which council members have heard will be increasingly stressed to meet civic infrastructure needs over the next decade.
“It’s huge ask, and there are recommendations in there and they will ferret out where we go with it … but it can’t be taken lightly.” said Coun. Andy McGrogan, who like others was generally supportive of the pause.
“I know I’m supportive of the Stampede – I don’t know if I’m supportive of (providing) that much money, but I’ll look at it when it’s in front of us,” said Coun. Shila Sharps. “It has to benefit the taxpayer.”
The City of Medicine Hat has increasingly depended on investment returns from substantial reserve accounts as part of revenue projections.
A memo states that foregone income on a $15.6-million grant, the so-called Option 1, would be $22.3 million over a 25-year horizon, while coupled with a $7.75-million no-interest loan that would lose $1.7 million in value due to inflation, while foregone interest would total $6.8 million.
A variety of construction options and varying levels of funding and loan-grant split peg the total cost to the city between $19 million and $46 million, considering cash and foregone income.
Funds would come from reserve accounts.
Stampede general manager Ron Edwards said he’s not sure what the report would say that would affect capital spending plans.
On Tuesday he reiterated the expansion secures critical need of a new grandstand, plus a new revenue-generating kitchen and event space.
MHES officials have said they are confident in preliminary discussions wit Alberta Agriculture that would see the province fund 40 per cent of the capital cost if another 40 per cent was secured from the city, as well as an interest-free municipal loan, repayable by the ag society to the city, for the remaining 20 per cent.
The project would replace the north wooden grandstand, built the late 1960s, which officials say is needed in the next year or two. Upgrades to the south grandstand are also needed, as well as replacing a decades old commercial kitchen, and a new hosting space between the grandstands and Higdon Hall could add events and bring in revenue to the MHES.
New cost estimates peg the full package of upgrades at $38.9 million, or, if only grandstand work moved ahead, $29.8 million.
