REGINA — Urgent financial aid is needed for the Globe Theatre to remain stable without a potential closure.
According to a report for the July 29 Regina city council meeting, city administration is recommending council provide the theatre with roughly $1.38 million from the general reserve fund.
The Globe Theatre declined to comment on the request, but the report indicates the decision is tied to significant cash flow pressures stemming from its major renovation project.
The five-year renovation project includes upgrades to the theatre’s lighting, seating, listening system and other features. The project was estimated to cost $29 million, but grew to more than $45 million.
During a private session with the city last Wednesday, the Globe Theatre said it is facing significant financial pressures related to the renovation project.
“According to the Globe, it has depleted its cash reserves to support the renovation capital costs, service project-related debt and pay current obligations. There are now also other urgent capital costs that cannot be addressed that could jeopardize the upcoming season,” stated the report.
This has led the Globe to require roughly $16.3 million in funding, which is planned to be split between the city, the federal government ($12 million), and sponsorships, grants and donation pledges ($2.9 million).
However, the federal portion of the funding has not yet been secured.
SaskToday reached out to the city to ask whether there are concerns about additional funding being required, but administration declined to comment, noting the matter will ultimately be decided by council.
If council chooses to grant the Globe funding, the general reserve fund will move further below its minimum threshold.
“The current forecast shows the uncommitted balance of the general fund reserve is $21.3 million, which is below the established minimum balance of $35.8 million and the maximum target balance of $71.5 million,” states the report.
“The financial risk of using the general reserve fund as a funding source when the general reserve fund is below its minimum threshold is that the city has less financial cushion to respond to emergencies or to quickly match unexpected grant opportunities,” added the report.
However, rejecting funding support for the Globe could carry the risk of the theatre shutting down entirely.
“Without immediate financial support, the Globe has indicated they will begin an orderly shutdown or significant reduction of operations. Scaling down operations would impact the Globe’s future revenues, which would further compound its financial challenges.”
This decision would also put the Globe’s upcoming performances at risk.
Council will debate the funding request on Wednesday.
