Item - 2021.EP18.6

The Board of Governors of Exhibition Place:

1.  Directed the Chief Executive Officer, Exhibition Place to submit another update to the 2021 operating budget impact due to COVID-19 at the September 28, 2021 Board meeting.

This report provides an update on the Board's 2021 operating budget forecast due to COVID-19.

Since the start of the pandemic back in March 2020 and the cancellation of events from City of Toronto and Provincial Public Health Officials decision, Exhibition Place staff have worked closely with City of Toronto, Provincial Government, and industry partners to actively monitor COVID-19 and the continued impact on the trade, consumer show, and conference centre business. Exhibition Place as well as the City and our industry partners are having to adjust and adapt as the situation and risk factors evolve. In addition to the impact to our business from the loss of events, the Board also continues to be impacted from a loss of ancillary revenue, such as Parking and tenant's services revenue from their closure of business operations.

Given the cancellation / postponement of almost all events except for film shoots up to September 30, 2021, Exhibition Place staff have been in constant communications with the City Managers Office and the City Financial Planning Department regarding financing opportunities to cover the Boards cash shortfall requirements.

The Boards operations are highly dependent on the cash flow and net income from our trade and consumer shows, conferences, conventions, socials, galas, meetings and tenants operations. Since early in 2021, given the rise in concern over COVID-19, staff has been monitoring its cash flow from operations on a daily basis and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc.

The Board approved 2021 operating budget is a Budget Loss of ($8.000) million. The estimated impact from COVID-19 to the Boards operating budget as at May 31, 2021 is an additional pressure of ($5.895) million for an overall net loss of ($13.895) million before City funding. The Boards approved 2021 Budget prepared in August 2020 included the assumption that events as well as tenants operations would become normal starting to reopen in April 2021.   

The continued pressure from lost business on the Boards operations and resultant cash flow is a continued concern not only to Exhibition Place, but also to the City of Toronto as the Board operates, manages and maintains Exhibition Place on behalf of the City, and the City is entitled to any surplus resulting from the Board’s activities, and is responsible for any deficit the Board incurs.