Five-year funding saga for new Medicine Hat Stampede grandstand continues

Another summer rodeo is underway in Medicine Hat and — for the fifth straight year — talks continue about replacing the 60-year-old wooden grandstand at the Stampede grounds.

The north grandstand seats 2,500 spectators. Last year it required hundreds of thousands of dollars in repairs and structural work to pass safety inspection ahead of rodeo go-rounds and concerts at the annual fair.

Replacing it is part of a larger project envisioned by the Medicine Hat Exhibition and Stampede board to modernize and expand the grounds, but it's one that will require significant municipal and provincial support.

What was first discussed as a pandemic stimulus project has now been subject to years of back and forth debate over scope, project management and financing between the Stampede and the city.

Council balked at an initial proposal in 2023 to provide about 60 per cent of the budget, now estimated at $38.9 million, in grants and no-interest loans to the agricultural society, and city hall is now studying options to scale back plans to reduce the cost to city hall.

'Like a chicken and an egg'

As first proposed, the project would entirely replace one grandstand that dates to 1966, refurbish another grandstand erected in 1979, replace a 45-year-old commercial kitchen beneath the stands and add a new 9,000-square foot convention and meeting space. 

Ron Edwards, the Stampede general manager, says all elements of the plan are needed, either for safety reasons or to bring in year-round revenue for the not-for-profit ag society.

Putting together potential grants and partnerships has been "frustrating," he said, as city hall studies the proposal and suggests scaling it back or alternate financing arrangements. 

Edwards said municipal support is needed before the province will consider providing matching funds.

"It's like a chicken and an egg — the city is asking what the province is doing and the province is saying, yeah, what's the city doing?" said Edwards.

"And we're sitting here for four years, saying 'we need a grandstand.'"

City councillors say they support the organization, but a $14-million grant and a $7-million loan would be the largest outlays to an outside agency in city history at a time when their own budgets are challenged.

For two years, city staff have reviewed the business case and evaluated construction and funding options. 

This spring council approved $250,000 to redo some design work and city hall plans to take up the issue again in August.

Coun. Andy McGrogan said the work now underway could open a path toward the city making a financial commitment. 

"You can't deny the economic impacts of the Stampede — this weekend hotels are full and restaurants are busy — but some [economic activity] is hard to measure," he told CBC News.

"You have to take that back to the average taxpayer and tell them it's worth it to keep the Stampede viable. It's a real balancing act."

The city also has infrastructure needs of its own that require cash from city reserves.

Beyond upgrades to the city-owned power grid and power plant, council has signalled a large recreation centre, potentially costing $100 million, should be in the next city budget.

Province is 'last partner' 

While Stampede executives say the Alberta government has been receptive to backing the grandstand repair, there hasn't been any formal confirmation from Alberta government officials.

Agriculture Minister RJ Sigurdson announced an increase in operating funds for agriculture societies from Medicine Hat in April, but only cited "an ongoing conversation" when asked by reporters if there would be more cash for the grandstand. 

Premier Danielle Smith spent some time speaking with Edwards during a luncheon at the Stampede this week. Edwards described the discussion as positive. 

The premier, who featured as the Stampede's parade marshal on Thursday, sat in the ailing grandstand as she watched the rodeo that evening. 

Speaking during an unrelated news conference in Brooks on Friday, Smith said her government will consider investing once the Stampede has a deal with the City of Medicine Hat. 

"We tend to like for the municipalities and the proponent to come through with an agreement on the design," she said. 

"And then we come in as the last partner to be able to bridge the gap. 

"They haven't succeeded in being able to come to an agreement with Medicine Hat on what that design should be. But as soon as they do, we'd be happy to re-engage in the conversation."