Item - 2015.EX9.10

City Council on November 3 and 4, 2015, adopted the following:

1.  City Council:

      a.  write off the capital loan to the Sony Centre for the Performing Arts, in the amount of $7.002 million; and

     b.  provide funding for this write-off from either increasing debt, or the 2015 operating budget surplus.

2.  City Council:

      a.  write off the capital loan to the Toronto Centre for the Performing Arts in the amount of $10.023 million; and

      b.  provide funding for this write-off from either the Land Acquisition Reserve Fund, or the 2015 operating budget surplus.

3.  City Council request the Deputy City Manager and Chief Financial Officer to report back as part of the final 2015 year end variance report on which source of funds was used, as referred to in Parts 1.b. and 2.b. above.

4.  City Council:

a.  authorize a reduction in the amount of $8.1 million to the $20.0 million amount owing on a direct City loan made to the Lakeshore Arena Corporation, and that this $8.1 million reduction be considered as a shareholder capital contribution, subject to:

i.  the Lakeshore Arena Corporation obtaining permanent financing for the balance of the loan owing being approximately $11.9 million from a third party lender on such terms as are acceptable to the Deputy City Manager and Chief Financial Officer; and

ii.  City Council authorizing a loan guarantee for such a loan, and that the loan guarantee be deemed to be in the interest of the City;

      b.  amend the Unanimous Shareholder Declaration to require that Lakeshore Arena Corporation make an annual contribution to the City equal to 50 percent of net operating income, before amortization and depreciation, and that such contributions be reflected as return of capital contributions, to a limit of $8.1 million; and

c.  amend Schedule 8 of Chapter 227, Reserves and Reserve Funds, of the City of Toronto Municipal Code by establishing a discretionary reserve fund called "Lakeshore Arena Capital Reserve Fund" the purpose of which will be to receive the annual contribution equal to 50 percent of the net operating income, before amortization and depreciation, for the purpose of providing a source of funding for Parks, Forestry and Recreation capital repair projects associated with the Arena, with criteria as set out in Attachment 1 to report (October 5, 2015) from the Deputy City Manager and Chief Financial Officer.

5.  City Council, in accordance with Section 15 of the City Services Corporation Regulation 609/06, authorize City staff as deemed appropriate and as directed by the City Manager, to provide assistance to the Lakeshore Arena Corporation Board and/or subcommittee of the Board.

6.  City Council authorize the appropriate City officials to enter into any documents and agreements necessary to give effect to Parts 1 through 4 above, and to take the necessary action to give effect to Council's decision.

7.  City Council request the Board of Directors of Civic Theatres Toronto to review, as an early priority, opportunities for partnerships with potential partners (private sector or others) that could improve the opportunities and offerings of the civic theatres.