City Council approves splitting of LDE into two organizations to operate Agri-Food Hub and Trade Centre

Two new entities will be formed to operate the Agri-Food Hub and Trade Centre going forward—one focused on agriculture, the other on managing events.

The Lethbridge and District Exhibition (LDE) has been dissolved, and two new entities have been put in place to operate the Agri-Food Hub and Trade Centre.

City council approved the changes during Tuesday’s meeting.

The LDE will go back to its roots as the Lethbridge and District Agricultural Society to focus on agriculture, education and programming.

The second entity will be a municipally controlled corporation—EventCo—to focus on attracting and executing events and tradeshows.

“Separating those two, I really believe we’re on the path forward,” said Mayor Blaine Hyggen.

“Consultants have said this is the way to go and that it’s been successful in other communities.”

Both organizations would work hand-in-hand for event planning and operation, including Whoop-Up Days, Ag Expo and the Farmers’ Market.

The facility will be operated by a temporary holding company (EventCo).

The organization will operate the trade centre in the most sustainable and cost-efficient way possible, without needing to meet the criteria of an ag society.

Current staff employed by the LDE could be hired by EventCo.

Meantime, the society will focus on the promotion of regional agriculture.

With the change, the ag society is eligible to receive $550,000 annually from provincial grants and fundraising.

The change in name is required to meet Alberta Gaming, Liquor and Cannabis (AGLC) regulations.

The city will be the only shareholder of EventCo. and is responsible for governance.

With the new path forward, the ag society will establish new shareholders and elect a community board by the end of the summer.

“When it comes to this board … that there’s a skills matrix that is involved,” Hyggen explained.

“Let’s get experts from all different levels that are going to be part of that organization, so that’s part of the double and triple checking so that if these experts are coming forward to us and making recommendations, we have those checks in place.”

In December, council voted to continue with the operations of the $70-million Agri-Food Hub and Trade Centre for at least the next two years.

At the time, council voted to cover the $4.1-million annual operating cost using council contingencies and one-time funding.

Council deferred a 1.4 per cent property tax increase to 2027.

The approval to split the organization into two entities follows a third-party review done by Deloitte Canada to find what went wrong in the financial fallout of the LDE.

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.

In 2023, it was discovered that despite the project being completed, the LDE was experiencing significant financial challenges and was on the verge of having to shut down operations.

The LDE approached the city and province for additional funding for construction but was declined.

As a result, the LDE board was dissolved last December, and the city took over operation.

“What I want to see is to have it be sustainable one day,” said Hyggen.

“I don’t know what that looks like … I know we’re seeing comments and suggestions from different consultants on how we can get there, but that’s something I want to work towards.”

There is no new cost to the changes.