Item - 2025.EP19.2

The Board of Governors of Exhibition Place:

1. Subject to obtaining the necessary City of Toronto authorization, approved a new lease for the Leased Premises at the Bandshell Restaurant (the "Lease") between the City, as landlord, 1475530 Ontario Inc., as tenant, and the Board, for a term of ten (10) years commencing January 1, 2026 and ending December 31 2035, substantially on the terms and conditions set out in Appendix 'A' and Confidential Attachment 1 to the report (October 17, 2025) from the Chief Executive Officer, Exhibition Place, and such other and amended 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. Directed the Chief Executive Officer to work with the Deputy City Manager, Corporate Services, to seek necessary City approval for the Lease as set out in Recommendation 1.

3. Directed that the confidential information contained in Confidential Attachment 1 to the report (October 17, 2025) from the Chief Executive Officer, Exhibition Place, remain confidential and not be released publicly as this report deals with a proposed or pending acquisition or disposition of land by the City and the Board.

The Board and 1475530 Ontario Inc. (the "Tenant") entered into a lease dated February 1, 2005, for premises consisting of approximately 5,720 square feet of indoor leasable area, and approximately 4,729 square feet of outdoor patio area immediately adjacent of the building known as the Bandshell Restaurant (the "Leased Property").

The current lease dated 1st of February 2005 is set to expire on December 31, 2025 (the "Existing Lease"). The Tenant submitted a proposal in April 2023 and met with staff from both Exhibition Place and City Corporate Real Estate Management ("CREM") to indicate its desire to continue its relationship with Exhibition Place on the same terms and conditions as the Existing Lease, except where amended as outlined in Appendix A and Confidential Attachment 1 to this report. The proposed new lease will provide a source of revenue over its term.

This report recommends that, subject to obtaining necessary City of Toronto (the 'City") approvals, the Board enter into a new ten (10) year lease with the City, as landlord, and the Tenant for the operation of a restaurant at the Leased Property commencing January 1, 2026, and ending on December 31, 2035, substantially on the terms and conditions set out herein. The Lease will contain an option to extend the term for a further five (5) years, to December 31, 2040.

Staff from Exhibition Place and CREM have been in discussions and negotiations with the Tenant since May 2023. CREM engaged its internal valuation group to assist with the fair value negotiations with the Tenant. The proposed rent and other major terms and conditions of the New Agreement are considered to be fair, reasonable, and reflective of market rates.