Regina City Council to discuss lease between REAL and YQR Distillery

A special Regina City Council meeting has been scheduled for June 3 to discuss the lease agreement between Regina Exhibition Association Limited (REAL) and YQR Distillery.

REAL is seeking council approval to amend its existing lease with YQR Distillery and assign it to 102207241 Saskatchewan Ltd, or “the assignee,” according to the meeting agenda.

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The agenda further said the city’s consent is needed because the proposed term of the lease is longer than the current term of the city’s Campus Master Lease Agreement with REAL.

The agenda said YQR Distillery’s existing lease is in default.

“This recommendation was made after extensive review, legal consultation, and careful consideration of what is best for REAL, the community, and the long-term success of the site,” REAL said in an emailed statement on Friday.

“The new tenant brings a strong vision and a significant private investment commitment to transform an underutilized space into a dynamic public destination. Their plans help to reinvigorate a key area of the District in alignment with the REAL District Master Plan.”

The agenda said that REAL has not collected rent from YQR for the past six months and the assignee would not be responsible for YQR Distillery’s unpaid rent.

The assignee would assume YQR’s tenancy going forward with some new conditions attached. Some of the amendments include adding the 10,000 sq. ft. atrium in the common area to the existing space of the distillery. This would increase the space’s size to 52,000 square feet.

Another condition proposed is expanding the exclusive rights of the tenant to prohibit other sports bars or pubs from operating on the REAL campus, aside from existing ones.

Other conditions include:

The tenant will renovate the building at cost and construct leasehold improvements based on agreed-upon plans.
For any total or partial damages within the first 20 years of the term, REAL must rebuild the building.
Tenant has the ability to terminate the lease with six months notice.
Doubling of the space’s parking stalls from 30 to 60.

If approved, the agreement would start no later than June 30.

REAL said it was confident in the recommendation and that the decision reflects “fiscal responsibility, community value, and our commitment to activating spaces that serve Regina year-round.”

“We recognize that proposals like this can generate public discussion, and that’s a healthy part of civic life. As the board appointed to steward the REAL District, we are guided by a clear mandate: to deliver consistent and reliable experiences anchored by partnerships, and to maximize use of these facilities for the benefit of the community through a commercially viable, self-sustaining model,” said board chair Jaime Boldt.

“This recommendation reflects that responsibility. It supports renewal, ensures financial stability, and brings long-term value to Regina by activating underused space in alignment with the district’s future.”

980 CJME reached out to YQR Distillery for comment, but it declined to do so before Tuesday’s decision.

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