Lethbridge & District Exhibition

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.

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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.

Today, Lethbridge City Council voted 7-2 in favour of entering into a Memorandum of Understanding (MOU) with Lethbridge & District Exhibition (LDE). Subject to the Government of Alberta approving the proposed MOU, the agreement will create an interim governance structure comprised of City of Lethbridge and Lethbridge County administration. This group will focus on building a viable business model and governance structure for the organization and ensuring the Agri-food Hub & Trade Centre is best serving the region.

“Council’s job is to make decisions that are in the best interest of the entire community and that’s what we did today,” says Mayor Blaine Hyggen. “We have painstakingly weighed all of the risks and benefits of every conceivable scenario and at the end of the day, the approved MOU is the best option for Lethbridge and southern Alberta. We recognize that this is a fantastic facility with great potential, and it is vital that we make the most of this opportunity.”

In December 2023, LDE came to City Council with a letter of intent requesting operational, governance and financial support. Council directed LDE and City administration to develop an MOU for consideration at today’s Council meeting. The approved MOU sets in motion the asks in the letter of intent including:

• Redemption of shares from current LDE shareholders to the City of Lethbridge
• Appointment of an interim governance body made up of City of Lethbridge and Lethbridge County administration
• Third-party review of LDE operations

“While this is not a position we ever wanted to be in, the City is committed to making sure we do everything we can to minimize the impact on our community,” says City Manager, Lloyd Brierley. “The new LDE governance body will ensure the interests of residents are at the centre of all decisions moving forward.”

In early January, two full-time City staff were seconded to the Agri-food Hub & Trade Centre to provide interim leadership support to LDE. With additional financial planning support from the City, LDE has developed a revised 2024 operating budget, with an estimated current shortfall of $6.5 million per year. Considering reserves remaining within LDE and previously allocated funding, City Council approved $3.8 million in additional funds required for 2024.

Future decisions will need to be made on the decommissioning of the old pavilions and parking lot refurbishing.

“The reality is, we would have to pay this much, or more, if we didn’t sign the MOU and we would be in jeopardy of losing all of the benefits LDE and the Agri-food Hub bring to the quality of life in our community,” says Deputy Mayor, Mark Campbell. “From AgExpo and Whoop Up Days to our weekly Farmers Markets, the events and activities at the Exhibition create a vibrant and connected community. LDE creates jobs, both within the organization and all those contracted or associated with the events hosted there. The Agri-food Hub also attracts visitors and investors to Lethbridge. These are just a snippet of the many things that have a far-reaching positive impact on our city.”

Working together with the knowledgeable and dedicated LDE staff, the City has quickly gained better insight into the operations, limitations and opportunities at the facility.

“There has been a lot of information sharing and discovery over the last few weeks,” says Kim Gallucci, Interim Transition Leader at LDE. “The staff are working hard to successfully execute the many events happening at the Agri-food Hub, while at the same time, exploring new ideas to find efficiencies and additional revenue opportunities that will improve operations going forward.”

One of those discoveries is the understanding that the building is unsuitable to hold livestock, limiting some agricultural uses it was expected to be to be able to support. The interim leadership team will be working to explore other possibilities onsite to accommodate these types of activities.

“Despite the setbacks, the reason this facility was built, still exists today,” says Mayor Hyggen. “It is a world class amenity right here in our community. We’re committed to protecting the investments made by the City, the Alberta government and other funding partners while amplifying the benefits LDE brings to our residents. This is the best community solution moving forward.”

The Agri-food Hub & Trade Centre continues to be busy, hosting four major events in the last week alone. The Irrigated Crop Production Update, Alberta Food & Beverage Expo, Malanka – Ukrainian New Year’s Celebration, and the Provincial Agricultural Service Boards conference have combined to bring thousands of visitors to the venue. The facility will also host one of its signature events, a sold-out AgExpo, in February 27-29.

Today, Lethbridge City Council approved initial steps that would pave a new path forward for Lethbridge & District Exhibition and the Agri-food Hub & Trade Centre. In response to a letter of intent received from the Lethbridge & District Exhibition, City Council passed a resolution that will provide emergency interim resourcing to create stability and business continuity and explore a vision for the future.

“This is not a position we ever wanted to be in,” says Mayor Blaine Hyggen. “But the reality is, this organization is in financial trouble and change is needed. I am extremely proud of how City Council and administration have come together to take a leadership role in this change and work with the Lethbridge & District Exhibition to make that happen. We want to reassure the community, and those who have invested in this facility, that the Agri-food Hub & Trade Centre remains open for business.”

Today, Council put in motion some important transformations that will ensure the clarity and information needed is available to inform good decision making. It will also provide transparency to the community regarding how public dollars are being spent.

The approved Council resolution established the following directions:

• Emergency operating grant to the Lethbridge & District Exhibition of $250,000 allocated immediately.
  • The City will also set aside up to $950,000 in contingency, held under City control, for verified emergent needs.
  • This one-time funding is from the Municipal Revenue Stabilization Reserve (MRSR)
• Independent third-party review of the Lethbridge & District Exhibition
  • Regular reporting to Economic & Finance Standing Policy Committee (SPC)
  • Phase 1 report to be presented at the November 14, 2024 Economic & Finance SPC.
  • Administration to provide regular reports on any critical findings to Economic & Finance SPC as they occur.
  • Funding of up to $300,000 from the existing 2023-2026 Operating Budget
  • Funding of $850,000 for contract or term positions to support backfill of key City resources. This will be one-time MRSR funding.
• Interim governance body implemented, excluding any previous board members, to ensure a clean slate. The new governance body will be comprised of:
  • Administrative staff from the City of Lethbridge
  • Administrative staff from Lethbridge County (pending acceptance from Lethbridge County Council)
• Memorandum of Understanding to be developed between the City and Lethbridge & District Exhibition based on the recommendations contained within the letter of intent, no later than January 19, 2024 subject City Council approval at the January 23 Council meeting.

The City of Lethbridge and Lethbridge & District Exhibition have a long-standing relationship dating back to the early 1900s.

“There have been several points in our history where the City has provided support to the Exhibition,” says Councillor Belinda Crowson. “We have always found a way to work through it, for the benefit of our community, and I am confident this time will be no different.”

Lethbridge & District Exhibition appeared before City Council on November 28, asking for $6.7 million in emergency funding and the immediate takeover of the old pavilions (excluding the West Pavilion). The organization cited the impact of inflation, interest rates, supply chain issues and other lingering COVID-19 impacts as causes of the budget shortfalls. Additional capital costs, as well as the expense of maintaining the old pavilions, has depleted the Exhibition’s reserves which means they would be unable to move forward without additional financial support.

The City owns the land that the Agri-food Hub & Trade Centre is located on and contributed $25 million toward the construction of the facility which began in March 2021.