The Lethbridge and District Exhibition’s (LDE) $70.6 million Agri-food Hub and Trade Centre was never designed to hold livestock – at least in phase one of the project – according to newly released confidential reports held by the City of Lethbridge. On Tuesday, the city made 566 pages of past confidential meeting documents, presentations and reports pertaining to the financial fallout of the LDE public. “We thought for a level of transparency, which we thought was extremely important, that the documents would be released,” said Mayor Blaine Hyggen. In it, a submission made to the City of Lethbridge dated June 17, 2019, shows that Phase 1 of the Agri-food Hub and Trade Centre, with a cost of $62 million, would focus on the convention side of the project, with an indoor open tradeshow space, commercial kitchen, meeting and convention spaces, and lobby area. Phase 2 would’ve included the Agri-plex – an additional $16 million dollars – to include seating capacity for 1,000 to 1,500, a dirt floor area, 150 to 175 livestock pens and wash bays. The documents show the potential to include a hotel within the LDE grounds, citing a lack of hotel rooms that a business/convention traveller would consider booking into. It also included a shuttle to the airport. It was also proposed to install solar panels on the roof of the Agri-food Hub and Trade Centre to offset electrical use of the facility. The idea of paid parking was also being explored. None of those plans came to fruition. Cost of construction At the start, the project was estimated at $70.6 million. However, a confidential presentation showed that by Jan. 21, 2021, that figure had increased to $83.4 million, citing increases in structural steel, timber, doors and windows. In April 2021, the total was set at $75.4 million, with a reduction in the height of buildings by up to six feet, removal of significant design and demolition of the old pavilion removed. As construction continued, the costs grew, according to the documents. In May 2023, a confidential presentation to city administration showed the LDE’s current cashflow projection had the organization ceasing operation by early 2026 or sooner. At the time, construction costs increased $8 million. City council declined to provide additional funding, but would work to advocate to other levels of government. The following month, a letter to Mayor Hyggen on behalf of the LDE board, said the board wanted to retain operation of the west pavilion and vacate the remainder of the existing pavilions no later than Aug. 31, 2023 – the same time the new trade centre would open. In October 2023, the LDE met with council to ask for an emergency request for funding. The LDE said it was “within two to six months” of having to shut its doors. Council declined to provide more funding after it discovered that despite the project being completed, the LDE was experiencing financial challenges. The board was dissolved. Third-party review A third-party review was ordered. Unclaimed management expenses, unsupported strategic plan targets and inconsistent project budgets were believed to be leading factors behind the LDE’s financial troubles, according to the report by Deloitte Canada. Through the findings, the report suggests that strategic plan targets used to support the funding of the Agri-food Hub and Trade Centre were not aligned with historical results of LDE, comparable organizations or other reasonable support. The strategic plan targets contemplated by LDE were not supported by actionable operational plans. In December 2024, city council voted to continue with the operations of the Agri-food Hub and Trade Centre for at least the next two years. 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. Last week, it was announced that the city is looking at an option to split the LDE into two separate entities to operate the Agri-food Hub and Trade Centre going forward. City administration says one organization would see the LDE go back to its roots as the Lethbridge and District Agricultural Society, while the other organization – EventCo. – would be a municipally controlled corporation (MCC). “Even now, we will just make sure we double and triple check and make sure our administration is looking deep into any request that comes forward so that we aren’t in the same boat,” said Hyggen. The third-party review was turned over to the Lethbridge Police Service to investigate. The full confidential report can be found online.
