Item - 2014.EX41.10
Tracking Status
- City Council adopted this item on May 6, 2014 without amendments and without debate.
- This item was considered by Executive Committee on April 23, 2014 and was adopted with amendments. It will be considered by City Council on May 6, 2014.
EX41.10 - Annual Report on City's Loan and Loan Guarantee Portfolio
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on May 6, 7 and 8, 2014, adopted the following:
1. City Council approve the renewal of the following line of credits and capital loan guarantees:
a. the line of credit guarantee issued on behalf of the Canadian Stage Company (CanStage) to its financial institution in the amount of $730,000 (inclusive of all interest payable by CanStage), be renewed for a three year period commencing on November 1, 2014 and ending October 31, 2017;
b. the line of credit guarantee on behalf of the Young People's Theatre (YPT) in the amount of $175,000 (inclusive of all interest payable by YPT), be renewed for a three year period commencing on January 1, 2015 and ending December 31, 2017;
c. the capital loan guarantee on behalf of the Toronto Artscape Inc. (Artscape) in respect of the Distillery District Studios Project in an amount not to exceed $167,510 (inclusive of all interest payable by Artscape), be renewed for a three year period commencing on November 1, 2014 and ending October 31, 2017; and
d. the capital loan guarantee on behalf of the Toronto Artscape Inc. in respect of the Wychwood Barns Project in an amount not to exceed $2,979,538 (inclusive of all interest payable by Artscape), be renewed for a three year period commencing on June 16, 2014 and ending June 15, 2017.
2. City Council amend the City's Capital Loan Guarantee Policy and Direct City Loan Policy, as adopted by City Council on May 7, 8, 9 and 10, 2013, to require that any capital fundraising plan proposed in respect of debt repayment for any new project for which a loan or loan guarantee is being sought include a plan for repayment of the loan amount by alternate means should fundraising prove to be insufficient to repay the loan, such plan to be to the satisfaction of the Deputy City Manager and Chief Financial Officer.
3. City Council not authorize the public release of Attachment 1 – Confidential Information to the report (April 7, 2014) from the Deputy City Manager and Chief Financial Officer, as this attachment contains confidential information relating to litigation or potential litigation that could affect the City.
Confidential Attachment 1 to the report (April 7, 2014) from the Deputy City Manager and Chief Financial Officer remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to litigation or potential litigation, including matters before administrative tribunals, that could affect the municipality or local board.
Confidential Attachment - Litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2014/ex/bgrd/backgroundfile-68407.pdf
Confidential Attachment - Confidential Information
EX41.10 - Annual Report on City's Loan and Loan Guarantee Portfolio
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Confidential Attachment - Litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board
Committee Recommendations
The Executive Committee recommends that:
1. City Council approve the renewal of the following line of credits and capital loan guarantees:
a. The line of credit guarantee issued on behalf of the Canadian Stage Company (CanStage) to its financial institution in the amount of $730,000 (inclusive of all interest payable by CanStage), be renewed for a three year period commencing on November 1, 2014 and ending October 31, 2017;
b. The line of credit guarantee on behalf of the Young People's Theatre (YPT) in the amount of $175,000 (inclusive of all interest payable by YPT), be renewed for a three year period commencing on January 1, 2015 and ending December 31, 2017;
c. The capital loan guarantee on behalf of the Toronto Artscape Inc. (Artscape) in respect of the Distillery District Studios Project in an amount not to exceed $167,510 (inclusive of all interest payable by Artscape), be renewed for a three year period commencing on November 1, 2014 and ending October 31, 2017; and
d. The capital loan guarantee on behalf of the Toronto Artscape Inc. in respect of the Wychwood Barns Project in an amount not to exceed $2,979,538 (inclusive of all interest payable by Artscape), be renewed for a three year period commencing on June 16, 2014 and ending June 15, 2017.
2. City Council amend the City's Capital Loan Guarantee Policy and Direct City Loan Policy, as adopted by City Council on May 7, 2013, to require that any capital fundraising plan proposed in respect of debt repayment for any new project for which a loan or loan guarantee is being sought include a plan for repayment of the loan amount by alternate means should fundraising prove to be insufficient to repay the loan, such plan to be to the satisfaction of the Deputy City Manager and Chief Financial Officer.
3. City Council not authorize the public release of Attachment 1 – Confidential Information, as this attachment contains confidential information relating to litigation or potential litigation that could affect the City.
Decision Advice and Other Information
The Executive Committee referred recommendation 3 in the report (April 7, 2014) from the Deputy City Manager and Chief Financial Officer to the City Manager, along with the confidential instructions to staff, for a report back to the Executive Committee.
The Executive Committee recessed its public session to meet in closed session to consider item EX41.10 Annual Report on City's Loan and Loan Guarantee Portfolio as it relates to litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board.
Origin
Summary
This report provides an annual update on the City's loan and loan guarantee portfolio.
The City currently guarantees three operating lines of credit and eight capital loans under Council approved policies for line of credit and loan guarantees for cultural and community-based organizations. In addition to the guarantees, the City provides seven direct loans to City agencies and corporations, and one to an external organization. Three capital loans with a City guarantee provided to not-for-profit organizations were successfully paid in full during 2013 in the combined amount of $6.6 million. Another capital loan to BIXI in the amount of $3.65 million which was guaranteed by the City was repaid by the City and funded through revenues from the Astral Street Furniture contract.
This report recommends an extension of two line of credit guarantees which would otherwise expire at the end of 2014. These lines of credit are in good standing, and the organizations have achieved a reduction in their line of credit requirement. This report also recommends term extensions to two capital loan guarantees, which are also in good standing. Another organization with a capital loan guarantee with the City (Evergreen Brickworks) has requested that the terms of the guarantee be amended so as to provide a longer repayment plan. A staff report that addresses this request is scheduled for later this summer.
Background Information
https://www.toronto.ca/legdocs/mmis/2014/ex/bgrd/backgroundfile-68407.pdf
Confidential Attachment - Confidential Information
Motions
That the Executive Committee recess its public session to meet in closed session to consider item EX41.10 Annual Report on City's Loan and Loan Guarantee Portfolio as it relates to litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board.
That recommendation 3 in the report (April 7, 2014) from the Deputy City Manager and Chief Financial Officer be referred to the City Manager, along with the confidential instructions to staff, for a report back to the Executive Committee.