REGINA — Speculation about the future of various entities located at REAL District has ramped up in the weeks since the announcement that Brandt was purchasing assets of REAL from the City of Regina for $6.5 million.
Since that time, there have been numerous stories in the media about what the purchase and changes at REAL District will mean for the various entities operating there, including the Canadian Western Agribition. It has led to concerns from the public about the future of those organizations.
To try and quell those rumours, CWA officials, as well as Brandt president Shaun Semple, held a news conference Friday to clear up some of the rumours and information swirling about what will happen. Here is a look at some of those questions, and answers.
What is happening to Agribition?
The 55th annual Agribition is due to be back November 23-28 at the REAL District, with officials confirming the show will go ahead and that a suitable venue will be constructed on site for the livestock that is the lifeblood of the show.
“So it's a big important step for us to highlight the fact that Agribition will be moving forward with all of the livestock on the property,” said Shaun Kindopp, CEO of Canadian Western Agribition. He said they “appreciate the collaboration amongst Brandt as well as the City of Regina to get us here to today.”
Where is the livestock going?
The livestock is currently located at the Avana Centre area of the REAL campus to the west of the Bunge International Trade Centre, which is one of the portions being sold to Brandt. But plans are in the works to repurpose the Avana Centre area, meaning the loss of 84,000 square feet of livestock accommodation.
To accommodate the livestock, Brandt says it will construct a new 115,000 square foot addition to the International Trade Centre to the north, representing 37 per cent more space for Agribition than previously. Brandt will foot that bill for $8.5 million.
What is happening to the Avana Centre building?
Semple said Brandt intends to make the building the “home of Brandt Sports and Entertainment which includes the Regina Pats, the Regina Red Sox and our flagship Queen City Distillers distillery which is now scaled significantly since the original plan … This newly-renovated constructed facility along with the Queen City Distillers venues will set a new standard for the park.”
What happened to the original plan for Queen City Distillers?
Queen City Distillers and the associated entertainment venues were initially all to go in the Agribition building, but Brandt will now build the distillery portion of the facility in the Avana Centre location visible to Lewvan Drive. Semple said the entertainment venues will remain in the Agribition building location. Semple told reporters the distillery portion "got too big".
What is going on with stories of ‘evictions’ from REAL District?
There have been numerous media reports of agriculture organizations such as the Canadian Bison Association and Saskatchewan Stock Growers Association receiving eviction notices from REAL.
Semple told reporters that reports “suggesting that Brandt issued eviction notices to tenants on site” are “simply incorrect".
“Brandt has not issued eviction notices to Agribition or to any tenant because Brandt is not in control of REAL.”
He said the Avana Centre is in ”much need repair. It contained a variety of occupancies that predate Brandt's involvement, including expiring leases, agreements without, with notice provisions, month-to-month occupancies and some cases arrangements that were not formalized through a signed lease.”
“Working through those existing commitments is the responsibility of the current owners and operators but it's not a simple process. All of the tenants entered into these agreements on a month or month-to-month arrangements knowing that the commercial terms and and knowing that this building would be repurposed at some point in the future.”
Semple also took issue with the use of “eviction” to describe what transpired.
“Eviction is a term when you're paying your rent and you get evicted and you have a valid lease, and there's no terms in the lease that give you notice. There was none, nobody was evicted… That's a term that was mischaracterized by all concerned.”
Semple said that regardless of circumstances surrounding any of the individual tenancies, their objective “has never been to create disruption.”
“Our objective is to create a sustainable future for this whole site. The reality is that you cannot completely redevelop a campus of this size without change. There will be construction going forward. There will be temporary impacts. There will be operational adjustments. That is true of any major redevelopment in any city anywhere. The responsibility of everyone involved is to manage those changes professionally, respectfully and collaboratively.”
When will construction be done?
Semple believes the construction can be completed to the new addition to the International Trade Centre in time for Agribition in 2026. He expects to have the remaining construction finished in time for Agribition in 2027.
“In 2027, we look forward to having you in Regina in November with a newly-completed revamped parking lot, refreshed building exteriors, roof leaks fixed, fully equipped nightlife and hospitality venues on site to celebrate when all your work is done at the end of the day."
Where do things stand with the Brandt takeover of REAL?
Semple made clear that at this time, Brandt is “not managing the organization. We are not making the operational decisions. The transaction has not closed.”
“Today we remain in an extensive due diligence process. The process involves evaluating every aspect of the organization from the conditions of the facilities to deferred maintenance to the organizational structure to financial obligations to the future event delivery and everything in between.”
Semple also spoke at the news conference of the magnitude of the transaction. The term sheet had called for an estimated transfer of maintenance costs to Brandt of $78.4 million, including $12.9 million for Canada Centre, $23.3 million for Queensbury Centre, $19 million for Brandt Centre and $4.4 million for the Agribition building itself, among others.
The indication from Semple is even more cost is being added to that.
“I can tell you honestly that this is the, an enormous undertaking. In my 42 years at Brandt, we've been through lots of acquisitions and lots of expansions and turnarounds. This is probably the most complex and challenging one that I've ever undertaken. Every week we uncover additional work that needs to be done. The investment required is proving to be significantly larger than we originally anticipated and we have not yet completed our due diligence. This should tell everyone the magnitude of the challenge before us.”
Semple also said this “also reinforces why change was necessary. Doing nothing was not an option.”
Semple says it is still their intention to move forward with the closing.
How long is left in Agribition’s deal to be at REAL District?
The contract for Agribition at REAL District is set to run another two years. Agribition president Karl Sauter said they are “committed to try to stay in Regina. But we would like to keep Regina home for the next 100.”
As for talks to extend it beyond two years, Sauter confirmed that would happen, saying that is “something that's going to kind of happen organically over the next two years.”
