Lethbridge council approves agreement with Lethbridge and District Exhibition

Lethbridge City Council voted 7-2 in favour of entering into a Memorandum of Understanding with Lethbridge & District Exhibition.

Some surprising information about Lethbridge's new $76-million Agri-food Hub and Trade Centre came to light at a city council meeting on Tuesday, but a Memorandum of Understanding (MOU) was still approved.

Council learned there's a potential $30,000-a-day cost to operate the facility, and that it wasn't designed to accommodate livestock.

Still, council voted 7-2 in favour of entering into a MOU with the Lethbridge and District Exhibition (LDE).

Only Coun. Rajoc Dodic and Coun. Jeff Carlson voted against.

"Whether we supported the MOU or we didn't support the MOU, it's going to cost dollars," Mayor Blaine Hyggen said.

Subject to the Government of Alberta approving the document, the MOU will create an interim governance structure comprised of City of Lethbridge and Lethbridge County administration.

The group will focus on building a viable business model and governance structure for the organization and ensuring the Agri-food Hub and Trade Centre is best serving the region.

However, according to city administration, moving forward won't come cheap.

Instead of a projected $2.3 million surplus, administration has determined the LDE is looking at a $6.5 million operating deficit this year, a difference of $8.8 million.

When broken down, it'll cost the city between $18,000-30,000 a day to operate the centre.

"Fortunately, we did have some dollars left from this major event hosting grant and a few other pockets of dollars, that's able to help us through this year to be able to do the review, so there will be no impact on taxation,'" Hyggen said.

With the MOU signed, events will continue to happen, even though the Agri-food Hub and Trade Centre wasn't designed to accommodate livestock.

"This is an agricultural area in southern Alberta, and so if we can't have animals within this building like we did previously, and we're looking at the deconstruction of the previous buildings, that was a shock," Hyggen said. "A very big shock."

The LDE has $3.5 million in cash and reserves, the city will provide $3.8 million in 2024.

The MOU also includes of a third-party review, which will give a clearer picture as to how the LDE got to where it is.

"Through the third-party review, the facts are the facts," said Lloyd Brierley, city manager. "So, its human nature to jump to conclusions, it's important for me as the city manager, to not jump to conclusions and let the facts unfold as they may."

Phase One of the review will be shared in November, at which time the city can vote to walk away and dissolve the LDE.

"We will continue to look at immediate term efficiencies and opportunities to reduce those expenses,'" Brierley said. "But at the same time, looking at opportunities to further reduce those expenses and to generate revenue to make this a more viable building and facility for the city and for the longer term.'"

This all comes following the failed attempt for the exhibition to get nearly $7-million in additional funding citing interest rates, inflation and supply chain issues for the financial shortfall.