2026 Proposed Capital Works Budget as Part of Ten-Year (2026-2035) Program

Exhibition Place vision is to become Canada's premier destination for conventions, exhibitions, events, and entertainment with a focus on creating an environment that supports easy movement and memorable experiences for all. On July 9, 2025, the City's Chief Financial Officer and Treasurer provided supplementary instructions for all City Divisions and Agencies with the preparation of the 2026 Capital Works Budget as Part of the Ten-Year Submission. Exhibition Place Managed Projects Supporting the City objective of minimizing debt funding, Exhibition Place staff have worked towards minimizing debt funding for Exhibition Place new projects, also taking into consideration inflationary pressures, and supporting our vision. The change from 2025 to 2026 of the 10-year Capital Plan excluding carry forward is a change of $17.154 million over the 10 years. FIFA World Cup 2026 - Third Party Managed Project In early 2023, the City entered into a management agreement with Maple Leaf Sports and Entertainment (MLSE) for project management activities in support of Toronto hosting of FIFA World Cup 2026. This includes but not limited to major upgrades to the City-owned soccer stadium at BMO Field. Given that this City project is on the Exhibition Place grounds, it was agreed by MLSE and the City that the financial process and cash flow would flow through Exhibition Place's 10-Year Capital Plan. This will be a significant project as the annual cash flow funding requirement for the capital infrastructure needs to bring the stadium to FIFA operational standards as reported over the period 2023-2026 will be approximately $146.700 million in project cost. From the previous 10-year capital budget submission the total project cost has increased by $56.7 million. Project costs are funded $61.850 million from City reserves, $61.850 million from Federal funding, and $23.000 million from contributions from third party, MLSE. Overview Overall, our 10-year Capital Plan for Exhibition Place is $253.899 million with $208.080 million for Exhibition Place managed projects and the remaining $45.819 million for 3rd party managed projects relating to FIFA World Cup 2026. Throughout the budget process Exhibition Place staff worked closely with City FPD in developing the budget. The City practice for 2026 allocation of funds is still based on the Board capacity to spend but is linked more closely to the City's ability to fund the projects with debt. Annually, staff review the 10-year capital plan; this annual review procedure allows Exhibition Place to adjust its current State-of-Good-Repair (SOGR) program each subsequent year based on changing and operational needs, building/audit assessments, legislative changes, mandates, and priorities. Exhibition Place staff have submitted the 2026 Capital Works Budget to City FPD to meet the City Manager September 9, 2025, deadline; however, due to the budget submission schedule, City FPD understands that the budget is subject to Board approval and that the Board therefore reserves the right to make changes to the Capital Works Budget content. Exhibition Place staff will notify the City of any changes or directions made by the Board. In accordance with City guidelines for capacity to spend, the City's ability to fund, building assessments and SOGR priority, a total of $68.344 million net program is recommended for 2026 Capital budget. This includes: 1. New Projects for a total amount of $20.525 million cash flow in 2026 (Section 'B' in Appendix 'A') as follows: a. $20.475 million to be funded by debt for various upgrades within existing buildings, parking lots and roads grounds wide. b. $0.050 million to be funded by CNEA for Food Building projects ($0.050 million to replace boilers, hot water tanks, water distribution and sanitary systems, and $0.050 million for fire alarm system upgrade, 50 percent of which are recoveries from CNEA, as per the Board's Master Agreement sharing provisions with CNEA). 2. Previously Approved 2026 cash flow commitment of $2.000 million for replacement of high voltage priority feeders (Cash flow commitment for 2027 is $2.000 million). In summary, the total budget cash flow for Above the Line Capital Program 2026 (Sections A & B in Appendix 'A') including New Projects, Previously Approved and Carry Forward is $22.525 million. Even with the additional funding being recommended, the Net Accumulated SOGR Backlog at the end of 2026 for Exhibition Place stands at $92.240 million. 3. The 2026 capital cash flow for third party managed projects (Section C) is the FIFA World Cup 2026 capital project of $45.819 million. Capital Needs Constraints In addition to the $253.899 million required for the 10-year above the line capital works program, there exists $129.900 million of capital projects that are below the line. The term 'below the line' refers to projects not approved but that have capital needs or more specifically projects that their capital needs cannot be accommodated within the City capital plan even though the Board have the capacity to deliver. The projects under these constraints for Exhibition Place in the 10-year plan consist of $54.900 million for the Festival Plaza Development and $75.000 million for the Industry Building renovation.

2. The Board of Governors of Exhibition Place approve the Proposed 2026 FIFA World Cup 2026 non-Exhibition Place managed project in the amount of $45.819 million funded by City Capital Financing Reserves, Federal contribution funds, and third-party funding from Maple Leaf Sports and Entertainment (MLSE). 3. The Board of Governors of Exhibition Place direct the Chief Executive Officer to submit the 2026 Budget and any changes or directions by the Board to the City Financial Planning Division as part of the 2026 Budget Process.