Proposed sale of REAL assets to Brandt
Friday, April 24, 2026
Below, please find the critical pieces of the proposed sale of REAL assets to the Brandt Group of Companies. The offer will be considered by City Council on May 6th. These excerpts are taken from the report provided to council and have been authored by administration. I have not added any language, or opinions of my own. I provide it for transparency, and in an effort to support public trust.
The offer and terms.
The City of Regina (“City”) is the sole owner of the land and buildings municipally and historically described as the Regina Exhibition Grounds, now commonly referred to as the REAL Campus (the “Campus”). Pursuant to a Campus Master Lease Agreement dated September 1, 2021, the City appointed Regina Exhibition Association Limited (“REAL”) as an independent contractor to manage and operate the Campus and carry out development of the Campus. In November of 2025, the Board of Directors of REAL received an unsolicited offer from Brandt Industries Ltd. (“Brandt”) to purchase and operate certain portions of the Campus. The sale of assets is outside of the scope of REAL’s management contract with the City, therefore; the Board of Directors of REAL forwarded the proposal to City Administration.
Negotiating the Proposal has been a complex undertaking with consideration focused on impacts to community and City finances. This report outlines the key terms in the Proposal.
Financial Impact
The City is the sole owner of the land and facilities, sole guarantor of REAL’s financial credit facilities and the sole member of the municipal corporation, notwithstanding REAL’s obligations under the Campus Master Lease Agreement. The City is ultimately responsible for covering operating shortfalls, repairs and maintenance, major capital replacements and any other financial obligations arising from many aspects of REAL’s operation of the Campus, including employee and tenant obligations.
Strategic Priority Impact
The Proposal aligns with the 2026-2029 Strategic Priorities as follows:
– Infrastructure:
- Accepting the Proposal requires Brandt to invest heavily into the assets. The City and REAL currently have no plans to invest significant capital on the REAL campus.
- Accepting the Proposal will shift the focus of City Council and Administration away from the management of REAL and within 3 years eliminate significant financial burden from the City budget.
– Vibrancy:
- Brandt’s business plan aims to significantly increase the number of events per year on campus and further increase the planned investment in the music venue YQR Distillery.
- Brandt’s business plan requires significant customer service training for staff and venue renovations to improve the overall visitor experience on campus.
– Livability:
- The Proposal allows for private investment and commercial development opportunities at the REAL campus without the need for on-going City subsidy or initial capital investment.
– Prosperity:
- The economic impact generated at REAL relates directly to the number of events held on the campus. If the Proposal is accepted, the economic impact is expected to increase as Brandt increases the event days per year. Increasing the number of event days will proportionally increase local employment and local economic impact.
- The Proposal includes a major investment of private funds in assets used for community events and provides a private sector solution to the operation of a challenging asset in a challenging industry.
Labour Impact
There are impacts to REAL employees and City staff.
Brandt acknowledges that the purchased assets are subject to collective bargaining agreements between REAL and Retail Wholesale Department Store Union (RWDSU) and International Alliance of Theatrical Stage Employees (IATSE). All such employees will be transferred to Brandt on Closing and Brandt will assume the existing collective agreements as a successor employer. Brandt will also offer employment to designated non-union staff.
There are approximately 208 employees in the IATSE union, 485 employees in the RWDSU union, and 50 Out-of-Scope employees. Should Out-of-Scope employees be terminated, they shall be offered severance based on their employment contract and other factors typically considered.
Unique Opportunity
The City does not typically enter direct negotiations on real estate assets prior to a public offering. In this instance, Administration assessed that Brandt is uniquely positioned to enter into the Proposal for the following reasons:
1. As owner of the Pats Hockey Club, Brandt requires a venue for the team to play and wishes to control and improve the fan experience at the Brandt Center.
2. As owner of the Pats Hockey Club and the Red Sox Baseball Club, Brandt can create a management team with similar skills required to operate assets from REAL (event planning and marketing) and spread the cost of a talented management team over multiple organizations.
3. As owner of Brandt Group of Companies, Brandt can leverage existing staff in legal, human resource, asset management, facility management, property management, and information technology.
4. As owner of Brandt Group of Companies, Brandt is financially capable of making the investment described in the Proposal.
5. As owner of YQR Distillery, Brandt holds an existing lease that allows it to vertically integrate operations of the craft beer and distillery into campus operations by generating sales revenue at events. The business strategy rewards increased venue use and event attraction with profit from sales rather than the current situation in which REAL earns revenue through pouring rights.
Land and Building Valuations
At the outset of negotiations, City Administration and Brandt agreed the transaction would be an asset sale and not a sale of the operating entity (REAL). The City determined and controlled the process for valuing the land and buildings and have gotten agreement from Brandt on their value.
The first step was for Administration to engage an appraiser to set the value of the buildings based on highest and best use taking into account current land and building leases and the requirement to maintain the parking field for events. Administration engaged Brunsdon Lawrek Appraisals to provide the appraisal. Brunsdon Lawrek is accredited through the Appraisal Institute of Canada and widely used by major commercial landlords and financial institutions in the Saskatchewan market.
The second step was for Administration to engage an external consultant to complete a building condition assessment for each building that would establish the value of deferred maintenance on each building. Administration worked with REAL to confirm the building information to increase the accuracy of the assessments. The condition assessments produced a Facility Condition Index (FCI) for each building and an FCI target. This is consistent with how City facilities are assessed and condition targets established to determine the cost estimated to bring the buildings to a standard consistent with City facilities. The cost to achieve the FCI target was then utilized as the discount to the purchase price.
total value of the Purchased Assets was appraised by Brundson Lawrek at $45.4 million based on the buildings being is good condition (not adjusted for deferred maintenance). The VFA report identified the total deferred maintenance on the Purchased Assets at $73.5 million. The City established the amount required to improve the Purchase Assets to achieve the City’s FCI target at $39.0 million. The market value of the Purchased Assets is therefore in the range of a high of $6.5 million and low value of negative $28.1 million (the City would have to pay $28.1 million to the purchaser). The negotiated purchase price of $6.5 million was established at the high value by reducing the appraised value by the amount required to achieve the FCI target, as detailed in Appendix D.
Summary of the Significant Terms of the Proposal:
A. Transaction Structure:
• Agreements – The transaction will be carried out through a Master Purchase Agreement, together with ancillary agreements providing for long-term land leases, contract assignments and operating arrangements. Ownership will transfer in stages, pending requisite zoning, subdivision and other approvals.
• Purchased Assets – Brandt will purchase the land, buildings and associated equipment as described and shown as Purchased Assets in Appendices A & B. The Assets will be transferred on an “as-is, where-is” basis, subject only to purchase price adjustments for material deficiencies as to building condition based on the VFA Report and employee severance payments. Brandt will assume all existing encumbrances, obligations and liabilities relating to the Purchased Assets.
• Excluded Assets –City will retain and operate the land, buildings and equipment as described in Appendix A.
• Leased Assets – The ITC and fabric buildings will remain owned by the City but be leased to Brandt for an annual lease rate of $1.00 plus a fixed capital maintenance reserve fee of $550,000.00 per annum dedicated solely to the capital maintenance of the ITC and fabric buildings.
B. Purchase Price and Financial Commitments:
• Purchase Price – Brandt will pay the City $6.5 million for the Purchased Assets.
• Holdback – The Purchase Price will be subject to a holdback to be retained for a period of 2 years and available to address adjustments for building condition issues and employee severance liabilities, capped at an aggregate total amount of $6.5 million.
• Post-Closing Investment – Brandt will invest a minimum of $15 million into the Purchased Assets within 2 years of closing.
• Operating Cost Support – City will contribute toward operating costs for the first two years post-closing, $6 million in Year 1 and $3 million in Year 2.
Operating Agreement Fee – City will pay Brandt an operating agreement fee of $500,000 per annum for parking, shared access and services and community access, including delivery of the Queen City Ex.
• Parking and Access Improvements – City will contribute up to $4.5 million for capital
upgrades to the Parking Lots and access improvements to be completed by Brandt within 12 months of closing.
C. Operating Arrangements:
• Operating Agreement – City and Brandt will enter into a long-term operating agreement to establish rules for operations and shared spaces between the Purchased Assets and Excluded Assets. The Agreement will generally acknowledge the nature of the multipurpose facilities being intended to be used in the best interests of the community and the inter-connected use of the Purchased Assets and Excluded Assets, including such things as: the coordination of event bookings, common areas, shared services, parking access and traffic coordination, snow removal, etc.
• Parking – Brandt will provide the City with a minimum of [TBD] parking stalls for all
Saskatchewan Roughrider and other community events held at the Stadium and all events held at ITC.
• Shared Services and Access to Queensbury Lower Level – City shall have access to the lower level of Queensbury Centre in relation to its ancillary use connected to the Eventplex. Brandt and the City shall share costs for common areas, utilities, security, parking and mechanical systems between the Purchased Assets and Excluded Assets on a pro-rata basis.
• Commercial Rights and Rental Services – Brandt and the City will share sponsorship rights with respect to the Excluded Assets. Brandt will supply rental products (linens, chairs, etc.) for use at the Excluded Assets at not cost for a period of 5 years.
• Governance Committee – City, REAL and Brandt will establish an ongoing governance committee to ensure adherence to long term principles for the future development and benefit of the Purchased Assets and the Excluded Assets.
D. Employees and Contracts:
• Employees – Brandt will assume all REAL employment contracts and union-related obligations, including those associated with applicable collective agreements. City will be responsible for severance costs (if any) for REAL employees employed as of closing, for a period of two years following closing. Brandt will temporarily assume REAL’s obligations under the Campus Master Lease to ensure uninterrupted operation of the Excluded Assets during the transition period.
• Contracts – Existing leases, sponsorship, food and beverage and service agreements related to the Purchased Assets as well as all event bookings or contracts are generally assigned to Brandt, subject to required consents and Brandt assumes all obligations and liabilities related to the same.
E. Community and Public Interest Commitments:
• Continued Operation – Brandt will ensure the continued operation of the Campus for the primary purpose of hosting recreational, cultural, sporting, entertainment, convention, agri-business and other special events. If Brandt ceases to operate the Campus for its primary purpose the City shall have the option to require that ownership revert to the City.
Any proposed future sale of the Purchased Assets will be subject to the transferee expressly assuming Brandt’s continued operation obligations.
• Community Events – Brandt will provide access to the Purchased Assets to Canadian Western Agribition and other community events at commercial rates. Brandt will also be responsible for the operation of the Queen City Ex in a manner consistent with the format and scope under which it has historically been held, subject to the event being commercially viable and subject to market demand.
F. Taxes and Incentives:
• Property Taxes – City will exempt the Purchased Assets from the municipal and library portion of the applicable property taxes for a period of 5 years after closing. After 5 years, if future tax exemptions are not approved by City Council, City will provide Brandt with an operating grant equal to the municipal and library portions of the taxes imposed in respect of the ITC and the Brandt Centre and 95 per cent of taxes imposed in respect to other Purchased Assets operated directly by Brandt. Portions of the property leased to third parties for taxable commercial activities shall not be eligible for grant funding.
• Right of First Refusal – Brandt shall have the right of first refusal to purchase the Excluded Assets (excluding Mosaic Stadium) if the City proposes to sell or dispose of them in the future.
Stadium Access – Brandt shall have access to the Stadium to host two events per year, including rights to food and beverage revenues and City services for policing, fire and bylaw enforcement services. Brandt shall be responsible for other standard operating expenses, on a cost recovery basis, and a commercial event licence fee of $12 per ticket.
• Exclusivity – For a period of 20 years, if a new stadium or arena is constructed in the city to replace the Brandt Centre and the rights under the Master Agreement are not transferred to Brandt or Brandt is not otherwise granted rights to participate in the ownership of such new facility, Brandt may sell the Purchased Assets back to the City based on their depreciated value.
G. Other Key Terms:
• Restrictive Covenant – A restrictive covenant will be registered against the title to the Purchased Land to preserve parking access and capacity for the benefit of the adjacent lands and facilities.
• Existing Leases – The existing lease agreements between REAL and Brandt’s affiliate companies relating to tenancies of the Brandt Centre (Pats Lease) and the Agribition Building (Distillery Lease) will terminate without liability to either party.
Community Impacts
Concerns may be raised by the public regarding the sale of public assets to a private entity. A condition of the deal, contractually, as well as the zoning of these lands, will ensure that the site remains for the primary purpose of hosting recreational, cultural, sporting, entertainment, convention, agri-business and other special events.
A building-by-building assessment of anticipated impacts to the community is provided below:
Retained Assets: The majority of activity programmed by local sporting organizations occurs in the assets being retained by the City. These facilities were constructed to accommodate a variety of sports and events including practices and tournaments/competitions. Use for these purposes shall remain unaffected.
Co-operators Centers:
• No impact.
Affinity EventPlex:
• No impact as the change rooms located in the Queensbury Center will be leased by the City from Brandt to ensure no disruption to use.
Mosaic Stadium:
• Parking field and access are protected therefore the only anticipated changes may be the City from Brandt to ensure no disruption to use. There should be improved parking lot access, improved parking lot surface quality, and improved parking management.
Bunge ITC:
• No impact. Parking access protected. Building will continue to be connected to other buildings allowing large event hosting.
Purchased Assets: Activity in the Purchased Assets will be impacted. Generally, events held in the Purchased Assets are ticketed events such as concerts, professional sporting events, trade shows and banquets.
Parking Fields:
• Improved visitor experiences with changes planned to management of parking. Parking lot to remain available for QCX, Saskatchewan Roughrider game day parking, Mosaic event parking, Farm Progress Show, and ITC events including Canadian
Western Agribition.
Brandt Center:
• Improved visitor experience with major improvements planned to facility.
• Asset to remain available to City for events such as Remembrance Day celebrations and major events such as Canadian Western Agribition.
Commercial Cattle Barn:
• Asset use to be determined. Asset near end of life. Asset retained only for Canadian Western Agribition with limited use throughout rest of year. Stockmans Building:
• Asset use to be determined. Asset near end of life. Asset retained only for Canadian Western Agribition with limited use throughout rest of year.
Canada Center Building:
• Asset use to be impacted. Asset used primarily for Canadian Western Agribition with lease agreements to pickleball and volleyball users for balance of year. Proposal transfers leases to Brandt. Leases to pickleball and volleyball expected to expire or be terminated at Brandt’s option and according to the lease terms as agreed to by the tenants.
• Canadian Western Agribition offices to remain in building. Portion of building to be used to expand distillery operations reducing Canadian Western Agribition event space.
Queensbury Center:
• Main floor use for soccer to remain unaffected by way of commercial lease agreement between Brandt and City.
• Main floor REAL offices to transition to Brandt.
• Upper floor convention space to transition to Brandt.
Ag-Ex Building:
• No material change anticipated.
YQR Distillery:
• Use as a music venue to be expanded.
Risks
Many risks in the initial proposal have been negotiated out or capped to a financial limit.
Administration has purposefully accepted terms in the Proposal that share the risk on a variety of costs that are beyond the control of either the City or Brandt. By way of examples, the first set of shared costs relates to operating losses anticipated for Brandt’s first two years of operation postclosing as the event schedule for 2026 is largely set and the operating losses are already included in
REAL’s budget and were approved by the Council. A portion of the funds originally budgeted to transfer to REAL shall transfer to Brandt instead. The second set of shared costs relates to employee terminations and facility condition, which may be deducted from the purchase price for a period of two years to provide stability to current staff, and reduce risk related to uncertainly in the facility condition based on the inability to conduct typical building assessments. The third set of shared costs relate to operation of the Queensbury Center and the Affinity EventPlex. The mechanical systems in the buildings are tied together creating an on-going shared responsibility and shared cost arrangement.
One of the largest risks remaining is the City’s ability to obligate the purchaser to do what it proposes to do. As with any contract, there are limited options to compel an entity to comply. To mitigate this risk, we have included a clause which requires a minimum investment of $15 million or the City has a re-purchase option if it so chooses to use it.
There is also a risk the City and the purchaser cannot agree on the final legal agreement. The risk in Brandt has agreed to lease the space in the Canada Center Building at commercial rates.
Throughout Administration’s negotiations with Brandt, it is Administration’s opinion that Brandt has made reasonable requests based on the financial risks associated with ownership and operation of the most challenging assets on the REAL campus.
