Item - 2020.EP13.4

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 "City"), Toronto Centre for the Promotion of Fashion Design, carrying on business as Toronto Fashion Incubator, as tenant, and the Board, for a term of two (2) years commencing December 15, 2019 and ending December 14, 2021, substantially on the terms and conditions set out in Appendix A and Confidential Attachment 1 to the report (September 3, 2020) 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 to request the necessary City authorities to approve and enter into the Lease.

3.  Directed that Confidential Attachment 1 to the report (September 3, 2020) from the Chief Executive Officer, Exhibition Place remain confidential in its entirety and not be released publicly as it pertains a proposed or pending acquisition or disposition of land by the City and the Board.

The Board and Toronto Centre for the Promotion of Fashion Design, carrying on business as Toronto Fashion Incubator (the "Tenant"), entered into a lease of the Music Building at 285 Manitoba Drive dated June 15, 2016, which expired on December 14, 2019 (the "Existing Lease").

Pursuant to Section 3.2 of the Existing Lease, the Tenant surrendered the portion of the Music Building known as Pod 1 from the Leased Property, effective December 14, 2016.

The Tenant requested a 4 year extension of the Existing Lease with respect to Pods 2 and 3 of the Music Building, commencing December 15, 2019 and concluding December 14, 2023 which was approved by the Board at its meeting of September 19, 2019.

In early March 2020 the Tenant found out that the annual operating grant the Tenant receives from the City of Toronto Economic Development is being significantly reduced in 2021 and 2022, with the funding cut retroactive to January 2020 and therefore at this time the Tenant is unable to commit to a 4-year lease. The Tenant's Board is requesting a two-year lease instead, commencing December 15, 2019 and ending December 14, 2021 with two one-year renewal options, with an early termination provision of June 1, 2021 and June 1st of each renewal option year. The early termination provision would require the Tenant to give two months written notice.