City of Lethbridge offers emergency funding to Lethbridge and District Exhibition

Lethbridge city council has passed a motion that will provide the Lethbridge and District Exhibition (LDE) with funding to help it continue to operate.

The city is preparing to offer $250,000 in immediate funding and will put aside $950,000 in contingency funding.

Mayor Blaine Hyggen says he isn’t happy with the situation, but believes the funding will protect the city’s $25 million investment into the Agri-food Hub and Trade Centre.

"We do have an investment in there, so we want to make sure that investment is protected. Of course it comes from taxation, so it's prudent for us to be watching that investment."

There are several requirements for the funding, including the replacement of the entire LDE board.

CEO Mike Warkentin and the LDE mutually agreed to part ways Monday.

An interim board made of city and potentially County of Lethbridge administrative staff will be installed.

"The county hasn't made a definite decision yet, their meeting is actually on Thursday, but everything we're hearing from them is that they're on board with this. They see the potential, they see where we're going," said Coun. Belinda Crowson.

As part of the agreement, the LDE would have to undergo a third party investigation into the operations of the organization.

A memorandum of understanding must be agreed to by Jan. 19 and approved at the Jan. 23 city council meeting for the funding to be provided.

On Nov. 26, the exhibition had asked the city for $6.7 million or a $2.08 million grant

The LDE said higher than expected construction costs for the Agir-food Hub, inflation, high interest rates and building operations led to a budget shortfall.

The city agreed to pay roughly half of the capital grant if the province covered the rest of the cost, but the province declined.            

"When we requested funding from the provincial government, and the provincial government replied that they had concerns with the business plan, that was the same red flags we had, to be honest, at a community level," said Hyggen.

The LDE is very welcoming of the support, and said in a statement they "appreciate the city's commitment to finding an operational solution that is in the best interests of our organization, the city, the region, and the Agri-food Hub and Trade Centre."