Lethbridge & District Exhibition

After lengthy discussions and evaluating multiple options, City Council has decided to use both contingency funding and surplus dollars from the current budget to support the operations of Lethbridge & District Exhibition (LDE). This means there will be no additional tax increase in 2025. With the approval of LDE’s $4.1 million annual operating budget, City Council will balance the 25-26 budget using existing contingencies and one-time funding. This maintains the already approved 5.1 per cent tax increase for the next two years.

In addition, Council passed a motion to refinance the debt related to the construction of the Agri-food Hub & Trade Centre to save $15 million in interest during the next 10 years.

“We know an additional tax increase was not something our community was in support of,” says Lethbridge Mayor, Blaine Hyggen. “In the end, there is no win-win option. Our contingency and surplus funding is there for emergencies and that is what we were faced with today. I’m confident that over the next two years, we can continue to find efficiencies to reduce the money needing to operate the Agri-food Hub. We were also able to approve a new approach to managing the debt related to this project that will save the community millions of dollars.”

The City's finance department has developed a strategy to reduce the $17-million loan LDE is currently paying to the City for their portion of the Agri-food Hub project. By having the City assume this debt, refinancing options will now be put in place. Unused grant funding has been identified to pay down the loan by more than $7 million. This, along with refinancing from a 30-year to a 10-year term and moving from external to internal borrowing will save City taxpayers $15 million in interest costs.

Today’s decision secures operational funding for LDE which helps their team move forward with critical sales initiatives to book new events, secure sponsors and grow other revenue streams. This will help continue reducing the deficit at the Agri-food Hub & Trade Centre which has already been cut by $2.4 million in the last year.

As Council heard from City administration, deferring tax increases will create a tax pressure on the next budget cycle impacting the funding available during deliberations in 2027. Depleting available contingencies from the current budget means Council will have no available funds for one-time expenses that may arise before 2028.

City Council also approved several additional recommendations coming from for the Economic & Finance Standing Policy Committee (SPC):

• Administrative policy and procedure review: Council directed administration to amend City policies and procedures, as needed, to better protect the corporation and Lethbridge taxpayers from undue financial risk.
• Future Capital Costs: Two significant capital costs still required by LDE are the demolition of the old pavilions and the reconstruction of the parking lot. Council approved a recommendation to refer consideration of both the demolition and the parking lot reconstruction to the 2027-2030 Capital Improvement Program (CIP).
• Future operating models: In alignment with the options provided in the Deloitte report, Council approved that work proceed on exploring a new operating model for LDE. This includes the development of a recommended business plan, implementation plan and budget for a municipally-controlled corporation to consolidate event attraction across Lethbridge.

“Council sees the value and benefit the Agri-food Hub & Trade Centre brings to our community and we don’t want to lose that,” says Mayor Hyggen. “We are also encouraged by the huge strides made by LDE to become more efficient and increase revenues in the last year. We look forward to exploring new operating models and discovering the full potential of this facility in the future.”

Today’s decisions came following a financial presentation from City administration at the Economic & Finance SPC meeting on November 27 and a presentation of the findings from the third-party review of LDE by Deloitte Canada on November 26.

Lethbridge City Council has received a summary report of results from the third-party review of the Lethbridge & District Exhibition (LDE). This review was a central part of the Memorandum of Understanding (MOU) signed between the City of Lethbridge and LDE earlier this year, which also included the City agreeing to fund the 2024 operations and assume governance of LDE.

After five months of work, Deloitte Canada, the professional services firm that conducted the LDE review, presented their findings to City Council today. The review revealed significant issues across five key areas: strategy and planning, project execution, governance, use of funds, and council communication by LDE throughout this project process.

“While our Council and Administration continue to review the report's findings, I can say this: we are alarmed and incredibly concerned with Deloitte’s findings of what appears to be a significant level of mismanagement,” says Mayor Blaine Hyggen. “The report shows Council was lacking information from LDE throughout the planning and construction process, preventing fully informed decision-making and sound oversight of the project. This is extremely concerning given this was a taxpayer-funded project.”

From 2021-2023, LDE constructed the new 268,000-square-foot Agri-food Hub & Trade Centre with more than $70 million in funding from the Government of Alberta, the City of Lethbridge, Lethbridge County, and Government of Canada. In 2023, it was discovered that despite the project being completed, LDE was experiencing significant financial challenges, and was on the verge of having to shut down operations. Deloitte’s report has identified several issues that led to this.

“Our residents expect the City to be responsible stewards of public dollars,” says City Manager Lloyd Brierley, who took over as co-chair of the LDE Board when the City assumed governance of the organization in January, 2024. “We need to ensure this never happens again. While more work is needed, the findings from this report provide valuable insight into the changes that are required going forward.”

Looking ahead, Deloitte’s report also identified recommendations to support future decisions regarding this project and ensure that subsequent investments have substantial oversight to support informed decision-making.

“Now, with this summary report in hand, our Council is ready to continue the critical work ahead of us,” says Mayor Hyggen. “We will be establishing safeguards through new policies and procedures that enhance existing due diligence. This will ensure accountability from all organizations receiving City funds, particularly in strategic planning and financial reporting. I have complete confidence in the City Administration's ability to address the recommendations in the report.”

Deloitte’s review included stakeholder interviews and site visits, as well as reviewing background documentation on planning, budgets, policies, procedures, meeting minutes, and correspondence. This information was then compared to common practices for similar organizations.

Since the change in LDE governance this year, the operating deficit has already been reduced by over $2.4 million in less than a year as efforts continue to identify efficiencies while increasing revenue opportunities.

The report has also been turned over to the Economic Crimes Unit of the Lethbridge Police Service for further investigation. City Administration may also initiate deeper examinations of the findings.

Backgrounder

This backgrounder highlights the key findings of the third-party review of the Lethbridge & District Exhibition’s Agri-food Hub & Trade Centre as reported by Deloitte. View the report here.

Retrospective Review

Looks back on what caused the current situation and what could have been done differently.

Strategy & Planning

Strategic planning activities undertaken were not robust enough to support to the major investment in LDE.

• Strategic plan targets used to support the funding of the Agri-food Hub project were not aligned with historical results of LDE, comparable organizations, or other reasonable support.
• The strategic plan was not updated or adjusted despite significant changes like the COVID-19 pandemic.
• Future operational costs associated with the Agri-food Hub & Trade Centre were not incorporated into the financial forecasts.

Project Delivery and Execution

The capital project delivery and execution failed to align with standard practice for a project of this size.

• A project charter was not prepared or approved.
• Procurement policies were not sufficiently detailed and consistently implemented to achieve desired results.
• Lack of formal procurement process (public RFP or alternative) to engage the Architect/Designer and Project Manager roles.
• Procurement processes for the Construction Manager were not followed in all cases and were not aligned with common practice.
• Project budgets and forecasts were inconsistent and lacking in detail.
• Initial estimates for parking lot refurbishment and pavilion demolition costs were not supported by third-party quotes or appropriate diligence.
• Change orders lacked detail or included missing or delayed approvals.
• The functionality of the building changed significantly compared to the initial development plan without appropriate analysis or consideration.

Governance

Effective governance structures were not in place to provide oversight throughout this development.

• Gaps in Board composition hampered oversight.
• City representative withdrew from LDE Board during critical period for Agri-Food Hub, reducing transparency and accountability.
• CEO expenses were submitted without appropriate forms, supporting evidence or approvals.
• Board expenses were not supported in accordance with policy.
• Expenses for grant-funded advocacy trips were not supported by appropriate documentation or assessment of return on investment.

Use of Funds

LDE incurred expenses that were not allowable under policies or of good value.

• 100 per cent of the CEO expense samples tested and 50 per cent of the Board expenses samples tested were not in compliance with LDE policy.
• More than $81,000 spent on a grant-funded group trade mission without appropriate support for return on investment including $12,000 on gifts and more than $18,000 on luxury hotels.
• While overall construction costs per square foot were reasonable, Deloitte identified several areas of avoidable cost overruns totaling $660,000 including:
  1. More than $330,000 on custom-made, reclaimed wood furnishings,
  2. More than $296,000 on close-off space due to design issues, and
  3. More than $30,000 to address ventilation issues with server rooms.

The pattern of spending identified had a significant impact on LDE, as each incremental expenditure contributed to the overarching financial challenges during a time where fiscal restraint was needed.

Council Communications

Deloitte identified instances where the presentation of the project plans and budgets to City Council was not clear and consistent.

• On numerous occasions LDE Management referenced the work of a third-party without providing critical context on the scope, assumptions, and restrictions on use of that work.
• We could not verify that City Council or Administration received supporting analysis requested prior to making a decision to approve funding.
• There were inconsistencies in the format and structure of financial information communicated to the Council contributed to confusion about the overall project scope.
• LDE did not proactively communicate to the City more than $27 million in additional costs ($11.3M for demolition and $15.7M for parking refurbishment) that were uncovered by the City, despite the significant impact they would have on LDE’s financial sustainability.

Current State

This section of the report examines what is working and what needs to be improved for LDE to become sustainable. Deloitte evaluated eight key functions against leading-practice research from Alberta’s agricultural societies and a cross-section of convention and trade show organizations. The report identified:

• LDE’s governance and operational practices are immature compared to similar organizations.
• This presents many opportunities to increase financial sustainability by enhancing governance and operational policies, procedures, and systems.

Deloitte observed that many of the recommendations from the retrospective review have been underway since the City assumed governance of LDE in January 2024. Some of these changes include:

• Addressing staffing and operational gaps to stabilize the organization
• Renegotiating and/or terminating problematic vendor contracts
• Enhancing service in areas such as food and beverage
• Obtaining new quotes to better understand the future cost of deferred maintenance and other capital projects, such as the parking lot refurbishment and demolition of the old buildings
• Advancing initiatives to better use and monetize revenue-generating spaces

Future State

The future state recommendations examined LDE's mandate and options for operating and governance models. The city will contemplate these recommendations in greater detail over the coming months.

In their November report to the Economic Standing Policy Committee, Lethbridge & District Exhibition (LDE) provided both a financial and operational update to the end of September 2024.

After 11 months, LDE reports a total deficit of $2.2 million down $4.2 million from the originally estimated annual budget of $6.4 million. The team also made strides in revenue generation booking an additional ten events in 2024 and 12 new events for 2025.

“We know the Agri-food Hub & Trade Centre is a world class facility,” says Mayor Blaine Hyggen. “The more activity, events and exposure people have to that space, the more successful it will be. We are pleased to see the LDE leadership team continue to grow these opportunities.”

One of these major events is the Agri-Food Innovation Expo coming to Lethbridge November 26-28.

“We are really proud to be hosting the Agri-Food Innovation Expo later this month,” says LDE Acting CEO, Kim Gallucci. “We’ve been able to partner with the Red Deer’s Westerner Park which is a great collaboration that will see the event alternate each year between Lethbridge and Red Deer. We are excited to work together to highlight the amazing agricultural innovation we have right here in our own backyard.”

The Agri-food Hub & Trade Centre was busy in October, with more than 45 events, including the final Lethbridge Farmers’ Market of the season on Oct. 12, the Lethbridge Handmade Market on Oct. 12, Gujarati Navratri celebration from Oct. 11-13, the Alberta Livestock Expo on Oct. 16-17, the Rock and Gem show from Oct. 18-20, City & Baby tradeshow on Oct. 19 and more. October continues to see an influx of events, with more than 35 bookings, including Glow Lethbridge, which runs from Nov. 2 to Dec. 31, the Royal Canadian Legion’s Remembrance Day ceremony on Nov. 11, the Fall Into Christmas show on Nov. 22-23, Big Christmas and Farmers’ Market on Nov. 30 and Dec. 1 and more.

For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.

In their October report to the Economic Standing Policy Committee, Lethbridge & District Exhibition (LDE) shared positive news on their revenue growth. A successful Whoop-Up Days in August nearly doubled gross revenues from 2023, bringing in $242,500. The recent addition of a new concession in the Agri-food Hub & Trade Centre is also helping generate more dollars for the organization, while better serving visitors over busy weekend events.

This is all good news as LDE continues to close the deficit gap the organization was facing earlier this year. With an original annual shortfall estimated at $6.5 million, LDE reports a deficit of $1.9 million to the end of August 2024. With just two months left in the fiscal year, this is $4.6 million less than what was estimated.

“It is very promising to see that number continue to come down while also seeing all of the exciting events and activities LDE is creating for the community,” says Mayor Blaine Hyggen. “The staff should really be commended for the hard work they have put in. We also want to thank the community, and the region, for supporting the various events happening in the facility.”

Prior to Whoop-Up Days, LDE made the decision to add a concession in the Agri-Food Hub & Trade Centre which has proven to be a strong step forward.

“I’m really pleased with the addition of our concession,” says LDE Acting CEO, Kim Gallucci. “This brought in just under $30,000 during Whoop-Up Days and continues to do well at the events we have hosted since. We are able to feature local products that highlight agriculture in our region like the french fries and cheese curds in our crowd favourite, poutine.”

Gallucci says there is lots of potential to grow this revenue stream and is forecasting the concession could be open 125 days in the next fiscal year.

In September LDE confirmed another 15 events for 2024 and six for 2025. The Agri-food Hub & Trade Centre was bustling in September, with more than 20 events, including the Windy City Tattoo Show, and one of the busiest weekends in the venue’s history on the weekend of Sept. 28-29 when it simultaneously hosted the Lethbridge Farmers’ Market, the Honouring Traditions Powwow, the Rotary Black-Tie Gala, the Taboo Show, Cirque Italia and a small private event. October continues to see an influx of events, with more than 40 bookings, including the final Lethbridge Farmers’ Market of the season on Oct. 12, the Lethbridge Handmade Market on Oct. 12, Gujarati Navratri celebration from Oct. 11-13, the Alberta Livestock Expo on Oct. 16-17, City & Baby tradeshow on Oct. 19 and more.

For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.

Fresh off a successful Whoop-Up Days, Lethbridge & District Exhibition (LDE) brought forward their monthly update to City Council today. The report included a financial summary until July 31, 2024 as well as a new year-end forecast, both showing positive improvements from previous estimates.

Through increased revenues and operational efficiencies, LDE is projecting a $1.3 million improvement to the deficit for this fiscal year, now predicted to be $3.26 million. As of the end of July, the organization recorded a $1.89 million deficit.

“As a City Council, we know we have some important decisions ahead regarding the budget for LDE,” says Mayor Blaine Hyggen. “But we are encouraged by the good work we’ve seen so far to reduce the deficit.”

Acting CEO Kim Gallucci says the LDE team continues to add bookings at the Agri-food Hub & Trade Centre with 15 more events added to the scheduled for 2024, six new events for 2025 and a big event for 2028 – the Alberta Fire Chiefs Conference.

“We are really proud to see our partnerships growing and our reputation building as we secure larger events into the future,” says Gallucci.

The 2024 Whoop-Up Days saw attendance surpass 40,000 people with a new record number of people taking in the Pro Rodeo.

“I love to see how energized our city is during Whoop-Up Days,” says Mayor Hyggen. “It highlights the more intangible benefits this event brings to our community. It’s these attractions that make Lethbridge vibrant, not just for our residents but for visitors who come here and stay in hotels, eat in restaurants and shop. This builds both the culture and economy of our city.”

The Agri-food Hub & Trade Centre has been busy throughout the summer with private events as well as two of their major signature events – Whoop-Up Days and Farmers’ Markets. Whoop-Up Days kick off with the parade showcasing entertaining entries from more than 100 businesses and organizations. It went out with a bang, displaying spectacular fireworks in the evening of Saturday, August 24. Headliner musical acts, the Siksikaitsitapi Powwow and the Lethbridge & District Pro Rodeo all helped boost attendance at this year’s event.

The Agri-food Hub and Trade Centre also hosted RibFest earlier in the summer and the Windy City Tattoo Show wrapped up this past weekend.

Into the fall, the Spirit Halloween store is making its home in the Main pavilion of the old LDE buildings. Some of the upcoming major events for the Agri-food Hub & Trade Centre include, Cirque Italia Water Circus Gold, Honouring Traditions Pow Wow & Artisan Show and the Craft Island Comedy Festival. For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.

Any members of the community wishing to keep updated on City news and Council decisions regarding LDE can follow https://getinvolvedlethbridge.ca/lethbridge-district-exhibition.

In their July report to Economic and Finance Standing Policy Committee, Lethbridge & District Exhibition (LDE) highlighted important changes made during the last month to improve the quality of service and economic sustainability at the Agri-food Hub & Trade Centre.

LDE’s monthly update to the SPC provided information on both financial and operating changes to the end of May 2024, including the replacement of the venue’s food and beverage provider.

“We’ve made the decision to move in a different direction with our food and beverage services, with the important goal of shifting this area of our business from an expense to a revenue generator,” says Kim Gallucci, Acting CEO of LDE. “With the right partner, we think this is absolutely achievable and critical to the success of the Agri-food Hub & Trade Centre. This will help us deliver a food and beverage service that meets and exceeds the expectations of our customers.”

The food and beverage contract that was in place was not fiscally beneficial to LDE and although there is a cost in breaking that agreement, a new model will provide an excellent growth opportunity. The change is estimated to cost approximately $600,000. This includes kitchen equipment expenses (the majority of which will remain the property of LDE), severance and inventory (some of which can be recouped with the new vendor). This expense will be funded from contingencies and is expected to allow LDE to be profitable in this area in both the short and long-term.

“The openness and transparency from LDE to make these difficult but important changes shows Council, and the community, that they are committed to both quality and sustainability,” says Mayor Blaine Hyggen. “We understand that you sometimes have to take a step back to move forward and with careful evaluation, these changes will help make that happen.”

Lethbridge based caterer Sky & Table have temporarily taken over food and beverage services at the Agri-food Hub & Trade Centre while LDE prepares to go to market and secure a long-term partner.

“We love to see a local company stepping up and helping out while LDE goes through a thorough procurement process to finding the best partner moving forward,” says Mayor Hyggen.

In their financial summary, LDE reported a $1.4 million deficit seven months into their fiscal year, making good strides in reducing the original estimated deficit of $6.4 million per year.

“It’s our goal, every day, to keep chipping away at that deficit and make this the best facility possible for our community.” says Gallucci. “We’ve been able to do that with strong financial management and prudent business decisions.”

LDE has also made the operational decision to expand a roughed in area in the lobby of the Agri-food Hub & Trade Centre to establish a concession. This will be controlled by LDE to provide another revenue opportunity while increasing service to both rental clients and visitors, something that has been requested often. The new concession is expected to be open in time for this year’s Whoop-Up Days.

In the last month, LDE has confirmed another 20 events for 2024 and one additional event for 2025.

The Agri-food Hub & Trade Centre has been busy throughout May, including the return of the Lethbridge Farmers’ Market, which LDE has produced annually since 1971. More than 3,000 guests visited the first market of the season on June 8. The market runs every Saturday from 8 a.m. – 1 p.m. in the UFA Hall of the Agri-food Hub & Trade Centre.

Other notable events during the past month include the Wild Mile Southern Prairie 4-H Sheep Show and Sale, the Lethbridge Entertainment and Collector Expo, and the Blackfoot Confederacy Elders’ Meeting. While July is traditionally a slower time for public events, the Agri-food Hub & Trade Centre remains busy with nearly 20 meetings and celebrations booked for the month. For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.

Any members of the community wishing to keep updated on City news and Council decisions regarding LDE can follow https://getinvolvedlethbridge.ca/lethbridge-district-exhibition.

Lethbridge & District Exhibition (LDE) submitted their June report to Economic Standing Policy Committee today, including a financial and operating update to the end of April 2024.

Six months into the fiscal year, LDE is forecasting a $1.8 million improvement in the estimated shortfall for 2024. Sitting at a $1.1 million deficit to the end of April, the financial forecast is now estimating at $4.6 million deficit, down from the original estimate of $6.4 million.

“We know there are still some very significant shortfalls,” says Mayor Blaine Hyggen. “But with a much clearer picture of what those are, we are pleased to see strategies being put in place to help reduce that deficit and mitigate risks to both LDE and the City.”

In the last month, LDE has confirmed another 20 events for 2024 and five additional events for 2025. In addition to more event bookings, sponsorship opportunities both within the Agri-food Hub & Trade Centre and at LDE events have also increased, generating more than $800,000.

“I am proud of the team for both keeping expenses down and for their work in creating new revenue opportunities,” says LDE Acting CEO, Kim Gallucci. “All of these efforts contribute to reducing that deficit at the end of the year.”

Today’s report also highlighted that most of the construction work has now been completed with a few remaining items still outstanding due to supplier delays. The total construction cost of the Agri-food Hub & Trade Centre is approximately $77 million.

From an operational standpoint, the report helped provide clarity around LDE staffing, in response to inquiries from members of the public.

“With the City’s financial and governance support of this project, the community may think these employees are now City staff,” says Mayor Hyggen. “We want to be clear, that is not the case. LDE remains its own organization, with its own staff.”

LDE is a separate legal entity from the City of Lethbridge and any new recruitments are hired as LDE employees. These employees all go through a training process and sign a LDE employment contract.

Any members of the community wishing to keep updated on City news and Council decisions regarding LDE can follow https://getinvolvedlethbridge.ca/lethbridge-district-exhibition.

The Agri-food Hub & Trade Centre has been busy throughout May, including the return of the Lethbridge Farmers’ Market, which LDE has produced annually since 1971. More than 3,000 guests visited the first market of the season on June 8. The market runs every Saturday from 8 a.m. – 1 p.m. in the UFA Hall of the Agri-food Hub & Trade Centre. Other notable events over the past month include the Wild Mile Southern Prairie 4-H Sheep Show and Sale, the Lethbridge Entertainment and Collector Expo, and the Blackfoot Confederacy Elders’ Meeting. While June is traditionally a slower time for public events, the Agri-food Hub & Trade Centre remains busy with nearly 20 private events booked for the month. For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.

Members of the Economic Standing Policy Committee received their second financial report from Lethbridge & District Exhibition (LDE). Following a Memorandum of Understanding (MOU) between the City and LDE earlier this year, City Council requested monthly financial reports which began in April.

Initial budget projections estimated a $6.5 million shortfall for LDE in 2024. Staff continue to work diligently to reduce expenses, become more efficient and generate new revenue. Expenses required to prepare for Whoop-Up Days, and the newly developed Agri-Food Innovation Expo, have the organization sitting at a deficit of $752,786 as of March 31, 2024. This is up from $341,194 reported on the February 29, 2024 month-end summary.

“The nature of this business is that you often have to pay money up-front for events that won’t happen until later in the year,” says LDE Acting CEO, Kim Gallucci. “The exciting news is, we are planning two really great signature events in the second half of 2024 that will be fantastic for our community.”

The Agri-food Innovation Expo was hosted in Red Deer last fall and will come to Lethbridge from November 26-28. LDE will also release details of this year’s Whoop-Up Days events to the public later today with exciting activities planned from August 20-24.

In an effort to provide further transparency and information to the public, a new online resource has been developed at https://getinvolvedlethbridge.ca/lethbridge-district-exhibition. This site will serve as the hub for any City news and Council decisions regarding LDE.

“I get a lot of question in the community about the partnership between the City and LDE,” says Mayor Blaine Hyggen. “This new resource is a great place to get regular updates and to look back on the decisions that have been made to-date. This is a complex topic and we want to be as open as we can with our residents about how we are supporting this important investment in our community.”

As part of the MOU, a third-party review of LDE operations was also initiated. City administration has completed the scope documents for the components of the review and is currently in the selection phase of the firm(s) to complete the work.

“We have a busy summer planned at the Agri-food Hub & Trade Centre,” says Gallucci. “With Farmers’ Markets starting again soon and of course Whoop-Up Days later this summer, it is important that visitors have a positive experience and want to return for more events.”

LDE is currently working on parking lot improvements including pothole filling, line painting and signage. These improvements not only extend the life of the parking lot but they also improve safety and enhance the overall customer experience. This work was previously budgeted and will not require any additional funding.

April and early-May brought a flurry of activity to the Agri-food Hub & Trade Centre, including a full venue this past weekend when visitors from across the province attended the High Level Innovation Conference, the 2024 Alberta E-Sports Championship, and Geek Fest, which all took place simultaneously. Earlier in the month, the venue hosted both the Lethbridge Handmade Market and City & Baby trade show. In April, Lethbridge & District Exhibition booked nearly 25 new events for the coming months, including everything from large public events, to mid-size conferences, and small meetings, which continues an upward trend of new bookings for LDE. For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.

For Public Inquiries:

Call 311 | Monday to Friday, 8 a.m. to 4:30 p.m.

Media Contact:
media@lethbridge.ca

Members of City Council received the first of monthly reports from Lethbridge & District Exhibition (LDE) today which highlighted the success of the recent Ag Expo and looked ahead to the summer Farmers’ Markets and Whoop-Up Days celebration. The report was presented at the Economic Standing Policy Committee (SPC), providing a transparent overview of the organization’s finances and operations.

Acting CEO Kim Gallucci, shared with the committee that while the November to February deficit of $341,194 is slightly better than projected, this reporting period does include Ag Expo, a major revenue generator for LDE. The initial budget projections estimated a $6.5 million shortfall in 2024 but work is ongoing to make every effort to reduce that.

“We are encouraged to see the strong fiscal practices and leadership now in place at LDE,” says Mayor Blaine Hyggen. “This gives a very clear, open and transparent picture of the finances and operations. City taxpayers deserve that information and need to be able to see the work happening to reduce the funding gap to make the Agri-food Hub & Trade Centre more sustainable into the future.”

Following the Memorandum of Understanding (MOU) signed between LDE and the City of Lethbridge earlier this year, City Council requested monthly financial updates on the operations of the Agri-food Hub & Trade Centre. This ongoing fiscal reporting will show a continuous cumulative update by month, giving a clear snapshot of where the organization is, at that point in time.

“We have made some positive changes that are definitely helping,” says Gallucci. “But we also know we will have some expenses over the next quarter related to Whoop-Up Days that will impact that bottom line. We want to manage expectations on what our monthly reporting will look like as there will always be a spike in expenses before revenues from those events come in.”

LDE staff continue to do everything they can to find efficiencies and secure new business to reduce the operating deficit. LDE has booked 25 new events in the last two months and is continuing to aggressively expand its reach and bookings into the future. There are currently 120 events in the 2024 fiscal year with the goal of reaching 200.

“We have restructured our team to best meet the immediate need of bringing in new business and expanding our reach,” says Gallucci. “We had amazing feedback from vendors at Ag Expo who are committed to coming back and we are seeing interest building in the community, across Alberta and throughout Western Canada for hosting events at the Agri-Food Hub & Trade Centre.”

On the operations side of the business, electrical deficiencies in the south parking lot have been identified which require immediate attention as LDE prepares for the outdoor events season. The work is estimated at $100,000 which will be funded through the lifecycle fee for service budget set aside by Council. LDE will provide an update on this work at the May Economic SPC meeting.

As part of the MOU, a third-party review of LDE operations was also initiated. City administration is currently working on this project which is in the procurement process. To date, no funds have been spent on this review.

A new governance structure is now in place at LDE including a new board comprised of administration from the City of Lethbridge and Lethbridge County.

In addition to LDE’s internally-produced events, the Agri-food Hub & Trade Centre has recently hosted successful high-profile rental events such as the Southern Alberta Home, Garden and Leisure show in March and the Southern Alberta Outdoors Show this past weekend. Upcoming events include the Lethbridge Handmade Market this Saturday, the High Level Innovation Conference and the 2024 Alberta E-Sports Championship, which both take place on May 3 and 4. For a full list of upcoming events visit: https://www.agrifoodhub.ca/agri-food.