The Regina Exhibition Association Ltd. (REAL) and Economic Development Regina (EDR) have to repay $8 million and $918,000, respectively, after a Canada Revenue Agency (CRA) audit.
An internal memo to the City of Regina reveals that the audit focused on the Canada Emergency Wage Subsidy (CEWS) funding, which provided pandemic assistance to businesses.
The memo stated, “REAL and EDR received this subsidy and are asking the CRA to waive the assessed interest. They are exploring options for repaying the wage and rent subsidy.”
REAL owes $6.5 million in principal plus around $1.5 million in interest, while EDR needs to repay its $755,000 loan and about $163,000 in interest.
The document mentions that administration is collaborating with both agencies to present a report to Council in the second quarter of 2024 with repayment funding options. It notes that REAL used the subsidy to support its operations during the pandemic, including backing the Saskatchewan Health Authority's testing and vaccination centers.
“The funds assisted REAL in offering sports and recreational opportunities to the community, as well as safe entertainment options like parking lot events,” the document mentioned. It also noted that REAL used the funds for maintenance and upgrades during underutilized periods.
The City of Regina affirmed the legitimacy of the internal document in an email statement and confirmed its advance distribution to the council before the upcoming audit and finance report set for April 9.
