Assignment of Fountainblu Lease for the Fountain Dining Room

At its meeting of February 11, 2020, the Board, approved a new lease for the FDR between the City, as Landlord, the Tenant, and the Board, for a term of ten (10) years commencing May 1, 2020 and ending April 30, 2030, with an option to extend the Lease in favour of the Tenant for a further term of ten (10) years from May 1, 2030 to April 30, 2040. Subsequently, the parties entered into a lease on these terms and conditions (the "Lease"). The Board also approved at its meeting of February 11, 2020, a term of ten (10) years (plus an option to extend for another 10 years) for the Queen Elizabeth Theatre lease to the same Tenant, which would make both leases coterminous expiring on April 30, 2040 if the options to extend were exercised. The parties entered into a lease on these terms and conditions. The Tenant is also requesting an assignment of Queen Elizabeth Theatre lease which is the subject of a separate report. At its meeting of September 28, 2021, by adoption of report EP19.11 the Board approved an amendment to the Permitted Use clause in the Lease to allow for use as a banquet facility, which is already permitted, and to add a new permitted use as a private event/function space, with the ability to offer both banquet and food and beverage events. By letter dated October 4, 2021, the Tenant provided a written request for consent to an assignment of the Lease to QET Operations Ltd., a single purpose subsidiary of the MRG Group ("MRG"), pursuant to an asset purchase agreement between the Tenant and MRG. Article 16.2 of the Lease provides that the Tenant shall not assign, in whole or in part, the Lease or the leasehold interest of the Tenant in the Leased Property, or otherwise dispose of same, without first obtaining the written consent of the Landlord, which consent may be unreasonably withheld. Staff have reviewed certain information provided by MRG to Exhibition Place and City Corporate Real Estate Management staff and are satisfied with recommending this assignment of the Lease to QET Operations Ltd.