Will The MHES Grandstand Project Be A Money Pit?

This week the Lethbridge Exhibition came hat in hand to Lethbridge city council to ask for more money for budgetary shortfalls of the new multi-million dollar Agri-Food Hub facilities.

As reported by the Lethbridge Herald, Mike Warkentin, Chief Executive Officer of the Exhibition, made a presentation asking the City for a capital grant in the amount of $6,742,315.72 or a capital grant in the amount of $2,081,093 to cover the unfunded capital of construction and a four-year debt deferral to be repaid on the back of the loan, totaling $4,671,309.72.
The presentation said the original approved budget for the new Agri-food Hub and Trade Centre was $70,600,000.

This ask is after receiving provincial funding and city funding to build the new complex. Earlier in the year the group asked for further funds in the millions to demolish old buildings on the grounds that are unused and causing ongoing operational expenses. What it does show is that even when you have many partners working together at multiple levels in a community, it does not assure that the business plan will be a good one.

It then begs to question how the taxpayers of Medicine Hat will be protected from the same continuing funding asks if the city does fund the MHES to build its new grandstand facility. As shown by GM Ron Edwards, the MHES has no business plan or estimates of new operating costs if the new facility is built.

What's even more concerning, unlike with the MHES, is that Lethbridge put together a team of individuals from across the community and different stakeholder groups, was transparent with the community on their financial situation, brought in people outside their board to work on the project, worked closely with the city and council and still they are faced with millions in shortfalls.

When it comes to doling out millions in public money to any entity, there has to be a high level of confidence in why it is a good investment and a plan to make good on the agreement to repay those funds. If our elected officials are not confident the MHES plan is a good one, then the simple answer to the MHES ask is no.