Brandt CEO Shaun Semple's $6.5-million bid to purchase seven of REAL District's 11 facilities from the City of Regina is more complex than it might sound. The offer, presented to council last week, is outlined in a 22-page document detailing terms and conditions tentatively agreed upon in negotiations.
What's Included in the Deal
The deal includes the Brandt Centre, Queensbury Convention Centre, and five other aging buildings on REAL's 100-acre grounds. The city would retain Mosaic Stadium, Co-operators Centre, and AffinityPlex while leasing out the Bunge International Trade Centre (ITC) to Brandt. Semple already owns the Brandt Centre's main tenant, the Regina Pats, as well as the naming rights to the 49-year-old arena. He also holds the lease for an adjacent building where he plans to construct a multi-level entertainment venue and distillery.
Assessing the Facilities' Value
The city hired a third party to assess the facilities, valuing all seven at a combined $45.4 million, including land value at $230,000 per acre. To reach a purchase price, the assessor offset the value with estimated long-term operational costs. Required improvements were estimated at $39 million for a patch job or $78.4 million for a full renewal. Semple describes this deal as a $113-million private sector investment into public assets. Brandt pledged at least $30 million right now: $6.5 million to purchase, $15 million in immediate upgrades, and $8.5 million to revamp the south parking lot by 2027. The rest applies to Brandt assuming responsibility for deferred maintenance costs and expected operational losses in the first two years.
Special Clauses for Brandt
The terms include an exclusivity clause whereby Brandt would be offered an ownership stake if the city builds a new arena in the next 20 years. Another clause gives Semple the right of first refusal to purchase the remainder of REAL District, if the city ever decides to sell. Semple also wants to host at least two events per year at Mosaic Stadium in which Brandt keeps the profits from ticket and concession sales. The city would provide police and fire services for those events while receiving a fee of $12 per ticket. City staff estimates that fee, at a sold-out venue, would generate about $450,000 for the stadium's maintenance reserve.
Next Steps
City council will continue discussing the offer Wednesday before voting on whether to accept or decline. If approved, it's expected to be finalized in a series of legal agreements between the two parties, including a master agreement outlining Brandt's takeover of various operating contracts held by the current steward, Regina Exhibition Association Limited (REAL).
