Brandt Group's bid to purchase more than half of Regina's exhibition grounds has passed initial examination by city councillors. During an executive committee meeting on Wednesday, city council spent around six hours discussing Brandt CEO Shaun Semple's $6.5-million offer to buy seven facilities operated by Regina Exhibition Association Limited under the banner of REAL District.
Couns. David Froh, Victoria Flores, Shobna Radons and Shanon Zachidniak were against moving the plan along, citing concerns about a quick turnaround to consider the complexities of selling city-owned assets to a private company.
Councillors ultimately voted 7-4 in favour of forwarding the proposed offer, without changes, to their council meeting next week for final approval.
A Unique Proposal
Mayor Chad Bachynski said this offer is a "unique proposal, involving a unique relationship" as Brandt already has a stake in REAL as a sponsor. The proposed deal includes the Brandt Centre, Queensbury Convention Centre and multiple other aging buildings on the west end of the 100-acre site. The city would retain control over Mosaic Stadium, Co-operators Centre and AffinityPlex while leasing the Bunge International Trade Centre to Brandt.
Semple is also the owner of the Regina Pats, a key tenant at the Brandt Centre, and is leasing space to build a multi-level entertainment venue and distillery in the attached former Agribition Building.
Transformational Deal
"This is a transformational deal for the city," Bachynski said. "And though this may feel quick, this has been negotiated by city staff for many months."
Brandt approached the city back in November with an offer to buy some parts of REAL District, city staff revealed last week. Subsequent negotiations resulted in a tentative deal whereby Brandt would purchase seven of REAL's 11 buildings, with a list of conditions.
Winning the Lottery
Semple came to Wednesday's meeting in person to make his pitch. He stressed that he's willing to buy the facilities as they are, despite the fact that a city-contracted appraiser estimates there are $73.5 million in deferred maintenance costs attached.
"This is like winning the lottery," Semple told city council. "This is the only deal I've seen where a private citizen is actually trying to give you money to take over your bad assets. Normally, it would be the other way around."
Semple promised that Brandt intends to continue running REAL District as an entertainment hub, teasing plans to transform the site "into a true year-round destination, one that brings people together."
