2020 Operating Budget Financial Impact Update due to COVID-19

The same meeting and event cancellation is occurring in every convention centre across Canada. In addition to the cancellation of shows/meetings, Tenants such as Liberty Grand, QE Theatre, Aqua Dolce Resto Venue and Medieval Times have been completely closed while other tenants have opened in very limited capacity and therefore the loss of related ancillary revenue, such as Parking and Show Services from their closure. The Boards operations are highly dependent on the cash flow and net income from our trade and consumer shows, conferences, conventions, socials, galas, meetings and tenants operations. Since early in March, given the rise in concern over COVID-19, staff has been monitoring its cash flow from operations on a daily basis and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc. Given the cancellation / postponement of all events up to August 31, 2020 Exhibition Place staff has been in constant communications with the City Managers Office and the City Financial Planning Department regarding financing opportunities to cover the Boards next 4 month cash shortfall requirements. Show Organizers and Meeting Planners of these cancelled events and conventions are requesting a full refund of their space rental fees due to Force Majeure. The Board approved 2020 operating budget is a surplus of $500,000. The estimated impact from COVID-19 to the Boards operating budget as at August 31, 2020 is a reduction of net income/surplus of $18.306 million (Schedule A). The loss of net income and resultant cash flow is a concern not only to Exhibition Place, but also to the City of Toronto as the Board operates, manages, and maintains Exhibition Place on behalf of the City, and the City is entitled to any surplus resulting from the Board's activities, and is responsible for any deficit the Board incurs. At its meeting of June 24, 2020 the Board received an update to the 2020 operating budget forecasted results, and directed the Chief Executive Officer to submit another update to the 2020 operating budget impact due to COVID-19 and the projected 2020 results at the September 18, 2020 Board meeting.