Annual Report on City's Loan and Loan Guarantee Portfolios

All loans and guarantees are in good standing as at the 2020 year end. The effects of COVID-19 and related closure of many of the not-for-profit and City agency venues associated with these loans and guarantees occurred in the 2020 calendar year and continue to the date of this report. The City has monitored the status of these loans and guarantees. As at December 31, 2020, some of the loans have been permitted to defer required payments by lenders due to lack of sufficient cash flow due to COVID related business closures. Allowable deferred payments are not considered a default on the loan. Currently at this point in 2021, these loans remain in good standing. The entities subject to this report have been staying current for the most part by adjusting operations to contain costs and through the receipt of financial assistance measures such as federal and provincial support programs and/or lender authorized payment deferrals, or by accessing associated existing debt service reserves and a line of credit to fund loan payments. The City will continue to monitor and bring forward any necessary actions for Council consideration that may arise from any future loan servicing deficiencies. At this time COVID closures still exist, however no immediate actions surrounding any changes in loan terms are required. This does not however preclude that future actions may become necessary to ensure the long term viability of loan servicing under these loans and guarantees should any conditions change such as the provision of financial supports and/or potential re-opening revenue streams. Such reporting will occur as necessary. This report recommends extending a line of credit guarantee with a not-for profit performing arts group for an additional three year term as well as extending the loan term for a City loan to a City services corporation for an additional one year term.

loan issued by the City on behalf of the Lakeshore Arena Corporation in the amount of $4,047,660 (interest payments only) for a further one-year period commencing on November 1, 2021 and ending October 31, 2022.