Item - 2021.EP17.2

The Board of Governors of Exhibition Place: 

1.  Subject to obtaining Council approval, approved the amendments to the new lease (the "New Lease") between the City of Toronto, as landlord (the "Landlord"), Liberty Grand Entertainment Complex Inc. (the "Tenant"), and the Board, for a term of twenty (20) years commencing January 1, 2021 and ending December 31, 2040, substantially on the terms and conditions set out in Appendix A and Confidential Attachment 1 to the report (March 30, 2021) 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, Exhibition Place (the "CEO"), and in a form satisfactory to the City Solicitor.

2.  Directed the Chief Executive Officer to work with the Deputy City Manager, Corporate Services, to seek Council's approval for the amendments to the New Lease set out in Recommendation 1.

3.  Directed that Confidential Attachment 1 to the report (March 30, 2021) 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 the 1309320 Ontario Inc. ("1309320") entered into a lease dated December 7, 2000, for premises known as the Ontario Government Building and certain adjacent lands, which lease was subsequently assigned, with the Board's consent, by 1309320 to Liberty Grand Entertainment Complex Inc. (such lease, as assigned, is hereinafter the "Existing Lease"). The term of the Existing Lease was twenty (20) years, commencing on January 1, 2001 and expiring on December 31, 2020 (the "Existing Term").

Throughout the Existing Term, the Tenant has undertaken significant renovations in the leased premises at a value of approximately $4.65 million excluding food and beverage equipment. Renovations to the roof, windows, HVAC systems, kitchen upgrades, washrooms, interior finishes, carpet, paint, and other miscellaneous items over the last 20 years have kept the facility in a state of good repair without having cost the Board and the City any financial resources.

The Tenant requested an extension of the Existing Lease or a new lease for a further 20-year term, commencing January 1, 2021 to December 31, 2040. The new lease was approved by the Board by its adoption of Item EP8.13 at its meeting of December 19, 2019, and by Toronto City Council ("Council") by its adoption of Item GL12.12 at its meeting of June 29 and 30, 2020. Under the new lease, the Tenant will invest an additional $8.025 million in various improvements during the first 5 years of the new term, which will significantly improve this City asset and the commercial viability.

The Tenant, on January 21, 2021 wrote to the CEO of Exhibition Place requesting certain amendments to the new lease.

This report is recommending that, subject to obtaining Council approval, the Board approve the requested amendments on the terms and conditions provided in this report.