Proposed Long Term Land Lease - City Owned Property at 11 Bay Street

QuadReal and Barney River have proposed a complete redevelopment of the Subject Property which will result in a new office tower and rebuilt convention centre at grade. The current term of the existing ground lease between the City of Toronto, as landlord ("City") and SCG Aquarius Toronto Hotel, Inc., as tenant and SCG Aquarius Toronto Hotel, Inc., in its capacity as General Partner for SWA Toronto L.P., as beneficial tenant (collectively the "Tenant") for 11 Bay Street expires on May 31, 2030, with the option of two subsequent 5 year renewal terms. These options may be exercised by the Tenant in accordance with the terms of the ground lease, but the City has retained the absolute discretion on whether or not to grant the renewal options. At the end of the lease term, the Tenant is required to surrender the Subject Property and all buildings and improvements thereon to the City. As part of this proposed Lease Extension, CreateTO has been working with the City's Parks, Forestry and Recreation, Community Planning and Economic Development divisions to understand the opportunities that exist within this proposal for the Subject Property itself, and within the broader public realm in the Central Waterfront. Along with a new office tower and rebuilt convention centre, there is an opportunity to leverage this City owned asset to partially fund significant public realm improvements in the Central Waterfront area, along with negotiating into the lease agreement, obligations for design excellence, sustainability and connectivity along with ground level activation. CreateTO and Community Planning have identified this redevelopment of the Subject Property as an excellent candidate to help advance the Mayor and Council's Urban Design Initiative.

1, when and if a finalized lease extension or notice of the lease extension is registered on title, and at the discretion of the Chief Executive Officer.