Item - 2018.EP8.15

The Board of Governors, Exhibition Place:  

1.  Approved the renovations to the Queen Elizabeth Theatre proposed by the Tenant as described in the report (under the heading Proposed Renovations) (January 16, 2018) from the Chief Executive Officer, Exhibition Place, subject to the Tenant entering into the lease amending agreement set out in Part 2 below.

2.  Subject to any approvals required from the City of Toronto, approved entering into a lease amending agreement substantially on the terms and conditions set out in Confidential Attachment 1 to the report (January 16, 2018) from the Chief Executive Officer, Exhibition Place and such other terms and conditions as may be satisfactory to the relevant City of Toronto authorities and the Chief Executive Officer and in a form acceptable to the City Solicitor.

3.  Directed that Confidential Attachment 1 to the report (January 16, 2018) from the Chief Executive Officer, Exhibition Place remain confidential in its entirety and not be released publicly as it pertains to the security of the property of the Board.

The Board and 16730801 Ontario Ltd. (the "Tenant") entered into a lease for the Queen Elizabeth Theatre (QET) dated March 6, 2008, as amended by a Lease Amending Agreement dated May 1, 2010 (collectively, the "Lease Agreement") which expires on April 30, 2020. 

Since the Tenant took possession of the QET, the Tenant has undertaken several investments / renovations in the leased premises as follows:

May 2008 and over the next 3 years invested approximately $550,000 for upgraded washroom facilities, bar area, and technical production equipment.
April 2010 until present invested an additional $300,000 in further stage enhancements, dressing room renovations and technical equipment.
 

However, the Tenant has also met with Exhibition Place staff on several occasions over the years to discuss the possible renovation and expansion of the capacity of the QET.  Recently, the Tenant proceeded to complete engineering drawings for these renovations and has presented them to Exhibition Place staff for review.

The existing capacity of the QET is 2157 with 1300 theatre seating and the renovations proposed by the Tenant would increase this capacity to 3047.  At present, Toronto has a lack of live concert venues that fulfill this particular capacity niche and with the closing of Massey Hall for major renovations over the next three years, the need will grow. The Tenant has provided letters from various show producers attached in Appendix A to this report outlining the venue shortage in Toronto.

This report provides information on the renovations proposed by the Tenant and recommends that the Board approve of these renovations.