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Brandt Group now says it’s “essential to the economic viability and overall function” of the REAL District for the company to operate and maintain the assets it’s not buying from the City of Regina, according to an administration report.
City council is being asked to approve a change to the terms of the city’s deal with Brandt.
That deal includes an interim period during which Brandt would run Mosaic Stadium, Confederation Park, the Co-operators Centre, and the AffinityPlex on an interim basis until Dec. 31, 2027.
Read more:
- Renderings reveal vision for Regina’s Brandt Centre, other REAL facilities
- What’s in the Brandt-REAL deal? Breaking down the agreement
- Brandt Group hopes new facility will put fears about Agribition’s future in Regina to rest
The company now wants to extend those terms until 2031, with five-year renewal options at the city’s discretion — the terms under which Regina Exhibition Association Ltd. (REAL) currently operates the facilities.
The change was endorsed during a closed session of Executive Committee on Wednesday.
“As part of its due diligence, Brandt determined that separating management of the Co-operators
Center, AffinityPlex, Confederation Park and Mosaic Stadium (collectively, “Excluded Assets”) is
expected to result in less efficient operations on the REAL campus,” the administration report says.
“Additional considerations related to union successor rights and the City’s capacity to assume operations in the near-term warrant reconsideration of the timeline for transitioning operation of the Excluded Assets to the City.”
The report goes on to say the change in terms is expected to be financially neutral for the city, which would still be on the hook for any deferred maintenance. But the city would have the same rights as the owner of those properties.
Not approving the change “jeopardizes the larger REAL-Brandt Proposal,” it says.
A map of the REAL District in Regina. While the city would continue to own the blue-shaded assets, Brandt would take over their operation and maintenance beyond 2027. (City of Regina/Submitted)
Brandt says change is “essential” to district’s function and viability
According to the report, Brandt has conducted due diligence into REAL’s financials and operations and determined that it’s “essential” for it to continue the operation and maintenance of the city-owned facilities.
“Reducing the area of the campus under management would decrease the efficiency of
Brandt’s business operations and may result in a duplication of positions required to operate the
campus,” it says.
It also says there are advantages to the city if the change is approved, such as improved customer experience, orderly employee transition, a reduction in the operating subsidy, and efficiency.
“Providing Brandt an initial term, with renewal options at the City’s discretion, allows the City to
maintain typical owner rights over the assets, provides Brandt with a period to establish its Queen
City Sports and Entertainment business, and is aligned with the desired outcomes of the REAL-Brandt Proposal.”
It explains a number of challenges for the city if it were to split up the assets of the REAL District. The city would have to hire staff while keeping union considerations in mind, and deal with inefficiencies and practical challenges created by multiple operators.
When the original terms were approved by council, including the interim agreement for Brandt to operate the city-owned facilities until the end of 2027, it was expected the city would have to make a decision then on whether to extend Brandt as the operator, take them over itself, or find another third-party.
Council is expected to debate and vote on the proposed change at its Aug. 26 meeting.
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