Item - 2017.EX24.12

The Executive Committee recommends that:

1.  City Council approve the renewal of the following lines of credit and capital loan guarantees:

a.  the line of credit guarantee issued by the City on behalf of the Canadian Stage Company to its lender be increased from $730,000 to $820,000 (inclusive of all interest payable by Canadian Stage) for a three year renewal period commencing on November 1, 2017 and ending October 31, 2020.

b.  the line of credit guarantee by the City issued on behalf of the Young Peoples Theatre to its lender in the amount of $175,000 (inclusive of all interest payable by Young Peoples Theatre), be renewed for a three year period commencing on January 1, 2018 and ending December 31, 2020.

c.  the capital loan guarantee issued by the City on behalf of Toronto Artscape Inc (Artscape) to its lender in respect of the Distillery District Studio Project in an amount not to exceed $107,700  (inclusive of all interest payable by Artscape), be renewed for a five year period commencing on November 1, 2017 and ending October 31, 2022.

d.  the capital loan guarantee issued by the City on behalf of Toronto Artscape Inc (Artscape) to its lender in respect of the Wychwood Barns Project in an amount not to exceed $2,750,000 (inclusive of all interest payable by Artscape), be renewed for a five year period commencing on June 16, 2017 and ending June 15, 2022.

2.  City Council consent to the transfer of an existing capital loan guarantee issued by the City on behalf of the Lakeshore Arena Corporation (LAC) to its lender in an amount not to exceed $19,067,966 (inclusive of all interest payable by Lakeshore Arena Corporation), from Versa Bank (formerly PW Bank) to Infrastructure Ontario commencing on November 1, 2017 and ending October 31, 2042.

This report provides an annual update on the City's loan and loan guarantee portfolios. 

The City currently guarantees three operating lines of credit and eight capital loan guarantees under Council approved policies for line of credit and loan guarantees for cultural and community-based organizations.  In addition to the guarantees, the City currently has outstanding a total of seven direct loans:  six to City agencies and corporations, plus one to an external organization.  All loans and guarantees are in good standing with one under a repayment settlement plan.  This noted loan is being monitored and will be the subject of a future report once the settlement term concludes.

This report recommends line of credit and loan guarantee renewals to four not-for profit entities set to expire in 2017 in addition to a transfer of a loan guarantee for a City services corporation to a new third party lender.