Ex-REAL board chair alleges Regina councillors sought free tickets, interfered with lease talks

The former chair of the Regina Exhibition Association Limited (REAL) board of directors issued a statement Thursday containing allegations regarding the relationship between REAL and city council.

Wayne Morsky sent a three-page statement to news media Thursday morning. He alleged that certain councillors interfered in lease negotiations with tenants and asked for free tickets to events for themselves, friends and family. One councillor allegedly asked for employment.

In the statement, Morsky specified how often the REAL board presented to city council on various issues, during which councillors were sometimes disrespectful. He also said there were times the organization took on certain projects at the city's request.

"I agree with every single word in Mr. Morsky's letter," said Ward 2 Coun. Bob Hawkins, whorepresents council as a non-voting member of the REAL board of directors.

"He's exactly correct and exactly fair."

REAL is the municipally owned corporation responsible for attracting and hosting events in Regina, as well as running city-owned facilities such as Mosaic Stadium and the Brandt Centre. It was in charge of Tourism Regina, but that portfolio has since been transferred back within the city's jurisdiction.

Morsky and the other voting members of REAL's board resigned last week, shortly after city council voted to remove them. Council's decision stemmed partly from concerns around REAL's significant financial troubles and its failed Tourism Regina rebrand.

Council held a special meeting last Friday during which it appointed six city administrators including city manager Niki Anderson to fill the board's vacancies on an interim basis until July 31, 2024, or until successors are found.

Anderson, who recommended each of the interim board appointees, told reporters Friday she believes they will serve theterm.

Morsky's statement is the first time anyone from the former board has publicly spoken since the resignations.

In a follow-up email, Morsky said he will not offer further comment. But in his statement, he expressed that the former board members are "extremely disappointed" they had no other option but to resign.

CBC News has contacted each member of council for comment.The City of Regina declined CBC News' request for comment from Anderson.

Ward 1 Coun. Cheryl Stadnichuk called Morsky's assertion about councillors' actions "a very strong claim."

"I'm not aware of that and I can say, unequivocally, that I have not interfered with any leases, or asked for free tickets," Stadnichuk said.

Hawkins and Ward 3 Coun. Andrew Stevens also denied they were the councillors to whom Morskywas referring.

Hawkins and Stadnichuk each said REAL sometimes offers tickets to events.

Stadnichuk gave an example of Regina Pats tickets to watch Connor Bedard earlier this year. Stadnichuk declined that offer, she said, because it was around the same time as the Tourism Regina rebrand and she felt accepting would have been inappropriate.

Hawkins said he knew who on council Morsky was referring to, but declined to identify them, directing CBC to ask each council member about their actions.

Board sometimes 'berated' by 'certain councillors: Morsky

The board's duties were conducted with the best interest of REAL and the City of Regina in mind, Morsky said.

At times, the organization took on additional projects even debt at the city's request, tobenefitthe city, he said, adding that there were times the company should have declined.

The board presented to council whenever asked, he said, adding that sometimes board members were "berated and treated in what can only be described as disrespectfully at the hands of certain councillors."

Stadnichuk agreed there were times board members were mistreated.

"I don't know if that would have been during an executive [committee] or council meeting," she said. "But whoever is [chairing the meeting] has the responsibility to make sure that council members are being respectful of everybody who comes before us."

Despite the organization's issues, the board thought REAL and the city would be working together moving forward, especially after the financial review from accounting firm MNP, which expressedskepticism about the sustainability of REAL, Morsky said.

Morsky skeptical about Anderson, interim board

Anderson and five other staffers are now running the REAL board of directors. Anderson had served as a non-voting member, but resigned prior to her appointment last week.

Morsky, in his statement, questionedwhether Anderson will have capacity for her role as city manager and the board chair position. He alleged that Anderson only attended one REAL board meeting since joining in December 2022.

Similar concerns were raised by some council members last week, but Anderson assured council during Friday's special meeting that she and the other staffers will be able to do both roles, without conflict of interest.

Hawkins, however, sided with Morsky.

"There's no question that there is not the capacity within the city to properly handle and manage REAL," Hawkins said. "What's more, the interim board, I believe, that was appointed by the city is illegal because it's riddled with conflict of interest."

REAL is governed by the unanimous members' agreement between it and the city, keeping the board at arm's length, he said.

"How can that board be independent when it consists solely of city employees?" Hawkins said.