Item - 2022.EX34.17

The Executive Committee recommends that:

1. City Council approve the renewal of the outstanding capital loan issued by the City to the Lakeshore Arena Corporation in the amount of $4,047,660 (interest payments only) for a three-year period commencing on November 1, 2022 and ending October 31, 2025.

2. City Council authorize the Chief Financial Officer and Treasurer to execute on behalf of the City a letter of guarantee, in a form approved by the City Solicitor, guaranteeing the due and punctual payment to the OMERS Sponsors Corporation (OMERS) of all obligations owing by the Toronto Seniors Housing Corporation to OMERS arising from the Toronto Seniors Housing Corporation’s obligation to pay employer and employee contributions to OMERS in respect of the employees employed by the Toronto Seniors Housing Corporation who are members in the OMERS pension plan(s) upon a failure by the Toronto Seniors Housing Corporation to remit such contributions when due for 120 consecutive days; and direct the Chief Financial Officer and Treasurer to review the continuing need for such guarantee every five years.

This report provides an annual update on the City's loan and loan guarantee portfolios, along with the details associated with each of the credit arrangements.

Under existing policies, as at December 31, 2021, the City has guaranteed operating lines of credit amounting to approximately $6 million, and almost $59 million in capital loans.

In addition, the City has an outstanding amount of $48 million in direct loans to City agencies and corporations which contribute to the financing of projects that create or enhance municipal capital facilities. None of these loans were in default during this reporting period.  One loan of approximately $12 million to the Bloor Street Transformation Project was fully repaid during this period.

Regular monitoring makes it possible to identify potential financial risks, and to take action to avoid or mitigate potential losses.

This report recommends a three-year term extension (to 2025) of an outstanding capital loan of $4.048 million to Lakeshore Arena Corporation.  This entity is currently undertaking a strategic planning exercise, the result of which may result in a recommended restructuring of outstanding loan balances, and therefore it is prudent to allow for the completion of this exercise before undertaking any third-party refinancing.

Additionally, this report recommends the provision of a letter of guarantee by the City, on behalf of Toronto Seniors Housing Corporation, to OMERS. This letter of guarantee would be for up to 120 days of projected employer and employee OMERS contributions to be made by TSHC, currently estimated at $1.34 million, plus associated costs.