Item - 2024.EX19.22

The Executive Committee recommends that:

1. City Council authorize the Board of Directors, Toronto Port Lands Company, to direct the Chief Executive Officer, CreateTO, to negotiate and execute an amendment to the Ground Lease between the City of Toronto Economic Development Corporation and Basin Media Studios GP Inc., as general partner for and on behalf of Basin Media Studios LP, dated August 29, 2022, as amended, substantially in line with the proposed changes outlined in Confidential Attachment 1 to the report (November 26, 2024) from the Deputy City Manager, Corporate Services and the Deputy City Manager, Community and Social Services and in a form approved by the Chief Legal Counsel, CreateTO.

2. City Council direct that Confidential Attachment 1 to the report (November 26, 2024) from the Deputy City Manager, Corporate Services and the Deputy City Manager, Community and Social Services remain confidential in its entirety as it contains information about a position, plan or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of Toronto Port Lands Company.

3. City Council direct the City Manager, in consultation with the General Manager, Economic Development and Culture, and the Deputy City Manager, Corporate Services, to assess opportunities to align the mandate of the Toronto Port Lands Company with the City’s economic development objectives in the Port Lands, such as supporting film production, and with the Port Lands Planning Framework and other area-specific Planning documents, and report back to City Council by the third quarter of 2025 with any required changes to the Toronto Port Lands Company Shareholder Direction.

The purpose of this report is to seek City Council's approval to amend the Ground Lease between Toronto Port Lands Company (TPLC), legally the Toronto Economic Development Corporation, and Basin Media Studios GP Inc. (the "Tenant") related to the Basin Studios project at 29 and 75 Basin Street. Amendments to the Ground Lease have been requested by the tenant in response to extraordinary market and economic pressures encountered with the project since 2021.

The Basin Studios project is an approximately $300 million, purpose-built, state-of-the-art film, television, and digital media hub in Toronto’s Port Lands. The development encompasses over 485,000 square feet of new purpose-built studio and support space, including 12 new sound stages. The project site involves an approximately 8.9-acre property owned by TPLC at 29 Basin Street (the "29 Basin Property") and 5-acre property owned by the Tenant at 75 Basin Street (the "75 Basin Property").  

In 2021, City Council approved the term sheet for the 29 Basin Property and authorized TPLC to execute the term sheet and any lease resulting therefrom conditional on CreateTO Board approval. In 2022, TPLC executed the Ground Lease with the Tenant for the 29 Basin Property, consistent with City Council authority. The proposed amendments to the Ground Lease are summarized in Confidential Attachment 1.

CreateTO and City staff are satisfied that the proposed amendments will allow the project to proceed and deliver the development proposal for the 29 Basin Property and do not introduce any new financial liabilities or risks to the City.  

In addition, staff will conduct an assessment of opportunities to continue to align the mandate of the Toronto Port Lands Company with the City’s economic development objectives in the Port Lands, such as supporting film production, and with the Port Lands Planning Framework and other area-specific Planning documents, and report back to City Council by Q3 2025 with any required changes to the Toronto Port Lands Company Shareholder Direction.

This report has been prepared in consultation with the following City divisions and agencies: City Manager's Office, Corporate Real Estate Management, CreateTO, Development and Growth Services, Economic Development and Culture, and Legal Services.