Coca-Cola Coliseum Lease and Sublease Amendment

The Sublease term is for a twenty (20) year period from July 1, 2005 to June 30, 2025. The Subtenant has a right, upon written notice on or before June 30, 2023 and subject to certain other conditions, to extend the term of the Sublease for a successive period of 10 years to June 30, 2035. The annual Basic Rent, Percentage Rent, and Supplemental Rent for the extension Term were negotiated in 2005 and included in the Sublease. These existing provisions are set out in Confidential Attachment 1. The Subtenant, MLSE, wishes to extend the Sublease Term for an additional ten (10) years, with an option to extend for a further ten (10) years. However, it has proposed certain amendments to the Sublease for the extension term including with respect to Basic Rent, Percentage Rent, and Supplemental Rent. MLSE and BPC have entered into a conditional agreement setting out the proposed terms of the extension. Under the Head Lease, the Landlord's consent is required for any amendment to the Sublease. Accordingly, BPC has approached the City and Board requesting consent to the proposed amendments. It has been necessary for the Board, the City, and BPC to revisit the financial and revenue assumptions that were made in 2005, based on the performance of the Toronto Marlies hockey club during the initial term of the Sublease. Accordingly, Exhibition Place and CREM staff recommend that the Board and the City consent to the proposed amendments to the Sublease, as set out in Appendix B and Confidential Attachment 1, provided that BPC agrees to amend the Head Lease to increase the share of Sublease Rent payable to the City and Board, as landlord.

for the Sublease extension term of ten (10) years commencing July 1, 2025 and ending June 30, 2035, with an option to extend for a further ten (10) years, substantially on the terms and conditions set out in Appendix B and Confidential Attachment 1, and such other and amended terms and conditions deemed appropriate by the Deputy City Manager, Corporate Services, the Chief Executive Officer, Exhibition Place, and in a form satisfactory to the City Solicitor. 2. As a condition of granting the consent in Recommendation 1, and subject to obtaining City Council approval, the Board enter into a Head Lease amending agreement whereby the share of Sublease Rent, after payment of Realty Taxes, be distributed 75 percent to the City and the Board, as landlord, and 25 percent to BPC Coliseum Inc., as tenant, rather than 50 percent to each of the landlord and tenant as currently provided in the Head Lease. 3. The Board direct the Chief Executive Officer to work with the Deputy City Manager, Corporate Services, to request City Council's approval for the amendments to the Sublease and Lease referred to in Recommendations 1 and 2. 4. The Board direct that Confidential Attachment 1 to this report remain confidential in its entirety and not be released publicly as it pertains to a position, plan, procedure, criteria or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the City and the Board.