City council has approved design funding toward a replacement of the north grandstand at the Medicine Hat Exhibition & Stampede grounds.--News Photo Collin Gallant
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City council has approved design funding for a third option to replace only the northern grandstand, and could potentially pay for half the cost of what administrators believe would be a much less expensive project, but also a much smaller upgrade of facilities, proposed by the Medicine Hat Exhibition & Stampede four years ago.
Five of seven council members who attended Tuesday’s meeting agreed to change among six options for a way forward on the lingering issue that stalled over a cost up to $40 million for grandstand replacement and new meeting space and commercial kitchen.
Instead, the city will pay $250,000 to help replace only the northern stand that is in danger of being condemned, and offer a $10-million grant toward the $20-million estimated cost.
“There’s no expansion of service level, but it’s an upgrade of what’s currently there,” said public service division managing director Joseph Hutter, who outlined staff recommendation that the city needs the bulk of its financial reserves for other concerns.
He said staff believe the MHES would be stressed to pay back a proposed no-interest loan, but the option gets things moving at a cost the city is able to consider.
Stampede officials told reporters that at this point, they’ll take what they can get, but as is, the deal will hamper revenue growth envisioned from event space and a renovation of the 45-year-old commercial kitchen.
“We’re not going to say no to a grandstand, because we need those 5,000 seats for what we do,” said MHES general manager Ron Edwards. “But that’s 60 days per year, (where new event hosting space would) help the other 300.”
Stampede president Lori Seidlicki agreed with assessment, but stated her board would need to discuss a way forward, though partnering with the city was always considered a needed step.
Coun. Robert Dumanowski said that plan further delays the work, but the city may need to take a “leap of faith” at some point and approve dollars for a quality project that improves the grounds rather than a simple a replacement.
“We’re pigeonholing ourselves into a very small, limited (grandstand replacement) that doesn’t help anyone,” said Dumanowski, who voted against the proposal along with Coun. Shila Sharps. “It’s on the precipice of a third term of council, before a decision is made,”
“This has been hanging on the heads of the Stampede for years … but it’s extremely shortsighted (to trim down the proposal). It’s not about handing out money to the groups with the biggest gong, but about making sure that (history) is here to stay.”
MHES approached the city in 2021 about the need to tear down and replace the north grandstand and upgrades the southern stands that date back to the early 1970s. A commercial kitchen would also be replaced and hosting space added between the stands and Higdon Hall.
It became public in 2023 with a request to council stating the province had offered a 40-40-20 grant funding formula where municipal and Alberta governments offered equal shares, and the city offering to cover the difference with a no-interest loan.
“The city’s reserves are largely spoken for – a fact that’s often overlooked or not understood,” said Hutter. “The city relies on that investment income, and without it, would result in tax increases (between) 1.04 and 1.79 per cent.”
The city believes a stadium seating setup could be replaced with similar seating, but at $20-million overall cost estimate would come in at half the preferred option budget of $38 million, proposed in 2023.
Coun. Shila Sharps said the decision comes down to whether the city is willing to provide $10 million, $15 million or $20 million, depending on the project’s overall scope.
“(The timeline) has been unfair to the Stampede, but as a taxpayer, I don’t want a (higher tax increase) because we’re funding this in whole or in part,” she said.
Coun. Alison Van Dyke said the change fits into her vision for how the municipality could help.
“I want to see them succeed but I have always seen this as a one-for-one replacement,” said Van Dyke. “I think this shows a way ahead.”
The city would pay $250,000 in expected costs to a redesign, but offer to cover half the $20-million budget if the Stampede could arrange its $2-million share through fundraising instead of requesting a no-interest loan.
Staff said the priority is replacing the north grandstand, which is out of date and needs to be demolished.
“The $250,000 (design) study gets us closer to that,” Hutter told council.
Mayor Linnsie Clark and Coun. Darren Hirsch were absent.
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