Item - 2014.EX39.4

The purpose of this report is to seek approval for a City capital investment of $10 million towards the cost of making the following changes to BMO Field at Exhibition Place:

-           increasing the permanent seating capacity to 30,000 (existing permanent capacity is 21,566) and allowing for an additional 10,000 in temporary seating capacity for special events;

-           adding a partial roof that will cover the majority of the seats;

-           reconfiguring the field so that the stadium can host Canadian Football League ("CFL") games; and

-           improving amenities within the stadium.

The Federal and Provincial governments have expressed interest in matching the City's investment in order to provide a total public sector contribution of $30 million. Maple Leaf Sports and Entertainment Ltd. ("MLSEL") will provide the balance ($90 million) of the total estimated $120 million funding required for the project.

MLSEL has agreed to modify the financial terms that govern income-sharing for the stadium in order to provide additional revenues to the City/Board and to reduce the potential variability in these revenues. As a result of these changes, City Finance staff forecast that, even under adverse market conditions, the proposed $10 million investment will be fully recovered from incremental revenues generated during the term of the extended agreement with MLSEL.

This letter is to advise that the Board of Governors of Exhibition Place at its meeting of Friday, March 7, 2014 considered a report from the Chief Executive Officer of Exhibition Place entitled “Improvements to BMO Field at Exhibition Place”, wherein the following motion with respect to the Proposed Improvements to BMO Field at Exhibition Place, was adopted.

On motion duly made by Mark Grimes, seconded by Connie Dejak, and unanimously CARRIED, it was RESOLVED that the Board of Governors:

1.         Direct that the confidential information contained in Report No. 1 dated March 6, 2014 from the Chief Executive Officer of Exhibition Place and the Confidential Attachment 1 to subject, report not be released publicly until such time that the City Manager has released his report to the Executive Committee.

2.         Approve of the Board, subject to approval of City Council, entering into the Letter of Intent (LOI) between the Board, the City and MLSE substantially in the form attached as Appendix “A” and the contemplated agreements including amendments to the Management Agreement (between MLSE, the City and the Board with respect to BMO Field), the Team Licence Agreement (between MLSE, MLS and the Board with respect to BMO Field), the Naming Rights Licence Agreement (between the Board, the City and MLSE) and including such other terms and conditions as required by the Deputy City Manager and Chief Financial Officer, the CEO of Exhibition Place and the City Solicitor.

3.         Request that the City transfer the balance of the funds in the Soccer Stadium Capital Maintenance Reserve Fund (XR3601) to Exhibition Place on December 31, 2014 so that these funds can be used to offset reduced parking income during the stadium improvements construction and also to fund the cost of new wayfinding signage for the grounds.

4.         FURTHER that the motion moved by Michael Layton during the closed session with respect to a direction to Exhibition Place staff for confidential instructions and a request to City of Toronto staff, be APPROVED.

Should you have any questions, please do not hesitate to contact me.