Item - 2019.EP3.22

The Board of Governors of Exhibition Place:

1.  Subject to obtaining the necessary City of Toronto authorization, approved a new lease (the "Lease") between the City of Toronto, as landlord (the "Landlord"), 16730801 Ontario Ltd., as tenant (the "Tenant"), and the Board, for a term of ten (10) years commencing May 1, 2020 and ending April 30, 2030, substantially on the terms and conditions set out in Appendix A and Confidential Attachment 1 to the report (May 30, 2019) from the Chief Executive Officer, Exhibition Place, and such other terms and conditions deemed appropriate by the Deputy City Manager, Corporate Services (the "DCM"), the Chief Executive Officer of the Board (the "CEO") and in a form satisfactory to the City Solicitor . 

2.  Authorized the Chief Executive Officer, Exhibition Place to request the necessary City of Toronto authorities to approve and enter into the Lease.

3.  Directed that Confidential Attachment 1 to the report (May 30, 2019) from the Chief Executive Officer, Exhibition Place remain confidential in its entirety and not be released publicly as it pertains to a proposed or pending acquisition or disposition of land by the City and the Board.

The Board and 16730801 Ontario Ltd. (the "Tenant") entered into a lease for the Queen Elizabeth Theatre (the "QET") dated March 6, 2008, as amended by a Lease Amending Agreement dated May 1, 2010 and a Lease Amending Agreement dated May 9, 2018 (collectively, the "Existing Lease ") which expires on April 30, 2020.

Since the Tenant took possession of the QET, the Tenant has undertaken several investments / renovations in the leased premises as follows:

-  2008 to 2010 - invested approximately $550,000 for upgraded washroom facilities, bar area, and technical production equipment.
-  2010 to 2017 - invested $300,000 in further stage enhancements, dressing room renovations and technical equipment.
-  January 2018 to present - invested $500,000 of the proposed renovation estimated at a total of $2.4 million, to increase capacity, which includes a lobby renovation and the addition of two balconies (the "2018 Renovations").
 

While the Tenant has commenced and continues to work on parts of the 2018 Renovations, the Tenant has been unable to secure funding for the remainder of the 2018 Renovations because of the pending expiration date of the Existing Lease on April 30, 2020.

The major 2018 Renovations proposed by the Tenant and previously approved by the Board will significantly improve this City asset and the commercial viability of the QET and this report is recommending that a new lease be entered into with the Tenant on the terms and conditions provided in this report.