Exhibition Place Hotel X Development - Phase 2 Lands

The first phase of Hotel X opened for operations on March 20, 2018.s. Under the Phase 1 Lease, the Phase 1 Tenant had an option to lease certain additional lands to the west of the Phase 1 Lease lands for the development of second hotel tower. The Phase 1 Tenant exercised the option by written notice to the Board dated July 31, 2020. The proposed second phase hotel (the "Phase 2 Hotel") is permitted based on the approval of Council of the Phase 1 Hotel lease, which as noted above provided the Phase 1 Tenant with an option to develop a second hotel. However, as discussed below, the option under the Phase 1 Lease did not provide for the performance venue (the "Performance Venue"), now proposed by the Tenant for Phase 2. City Council at its meeting of December 15, 16 and 17, 2021, by its adoption of Item GL27.18 (the "Original Decision") approved of a new lease between the City, as landlord, the Board, and Lakeshore Princess West Limited Partnership (the "Phase 2 Tenant"), on the terms and conditions set out in the staff report and confidential attachments submitted with that item (the "Phase 2 Lease'). Since the Original Decision, staff from the City Real Estate Management and Exhibition Place have been working with the Tenant to finalize the Phase 2 Lease; however, due to the market pressures imposed by the COVID-19 pandemic, the Tenant's various consultations with City Planning, minor modifications to the development plans, and the need to avoid interfering with the preparations and events for the FIFA World Cup 2026, staff and the Phase 2 tenant have negotiated certain amendments to the Phase 2 Lease. Appendix B to this report outlines the proposed revisions to the terms and conditions approved in the Original Decision. The necessary City authorization will be sought for these amendments.