Board of Governors of Exhibition Place
The full agenda, as filed
All 7 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
EP14.1adopted
2021 Proposed Capital Works Budget as Part of Ten-Year (2021-2030) Program
This report details the proposed 2021 Capital Works Program as part of a ten-year program submission to the City of Toronto. The City practice has recently changed from a set budget based on debt target to a budget based on entity capacity to spend and overall City affordability based approach for a ten-year cycle, although detailed review for each year is completed on an annual basis. This review procedure allows Exhibition Place to adjust its current program each subsequent year based on changing needs, building assessments, legislative changes, mandates, and priorities. The City of Toronto has provided a 2021 Budget Process with a submission due date of September 15, 2020 for the Capital Program. Due to the budget submission schedule mandated by the City, this proposed program will be submitted to the City Financial Planning Division by the due date of September 15, 2020 with the understanding that the Board reserves the right to make changes to its content and Exhibition Place will be notifying the City of any changes or directions made by the Board. In accordance with City guidelines for capacity to spend, overall City affordability, building assessments and SOGR priority, a total of $5.430 million is recommended for the 2021 Capital Budget, all funded by Debt. In April 2020 the City Manager's Office looked at options to reduce its growing costs due to the COVID-19 situation, and one of the efforts the City considered was the reduction and/or cancellation of 2020 Capital projects. In accordance with the City directive and budget reduction guidelines, a $6.435 million overall reduction was made to Exhibition Place Capital projects for 2020 (see June 10, 2020 report to Board). However, the City recently recommended that any unspent portion of those cancelled 2020 projects can now be carried forward to future years. Details of the 2020 unspent carry forward to 2021/2022 in the amount of $6.339 million and is included in Appendix 'A'. Only $6.123 million of this amount is carry forward to 2021, and the remaining $0.216 million for the Food Building to 2022. The total cash flow for Above the Line Capital Program 2021 (Parts A & B in Appendix 'A'), including the new 2021 projects of $5.430 million, and the City recommended carry forward of 2020 cancelled projects into 2021 of $6.123 million, and is therefore $11.553 million. Even with the additional funding being recommended, and the $2.640 million Capital Constraints for 2021 (Part C of the Appendix 'A') the Net Accumulated Backlog at the end of 2021 for Exhibition Place stands at $38.410 million.
The Board of Governors of Exhibition Place: 1. Approved the Proposed 2021 Above the Line Capital Works State-of- Good Repair Budget (Sections A and B) of Appendix A to the report (October 9, 2020) from the Chief Executive Officer, Exhibition Place of $5.430 million, funded by City Debt, as part of the ten-year (2021-2030) proposed program submission to the City of Toronto. 2. Approved the carry forward of $6.339 million unspent 2020 Capital projects funding initially cancelled due to COVID-19 to years 2021/2022, as recommended by the City. 3. Directed the Chief Executive Officer, Exhibition Place to submit the 2021 Budget and any changes or directions by the Board to the City Financial Planning Division as part of the 2021 Budget Process.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board approve the Proposed 2021 Above the Line Capital Works State-of- Good Repair Budget (Sections A and B of Appendix 'A') of $5.430 million, funded by City Debt, as part of the ten-year (2021-2030) proposed program submission to the City of Toronto. 2. The Board approve the carry forward of $6.339 million unspent 2020 Capital projects funding initially cancelled due to COVID-19 to years 2021/2022, as recommended by the City. 3. The Board direct the Chief Executive Officer to submit the 2021 Budget and any changes or directions by the Board to the City Financial Planning Division as part of the 2021 Budget Process.
EP14.2amended
On August 7th, the City Manager's Office provided the preliminary 2020 Budget Process, Directions, and Guidelines for all City Divisions and Agencies for 2020 which is subject to change. Until such other direction is given the Board is following last years directive to all City Divisions and Agencies which is to submit a zero change budget year over year. In preparing our budget plan, we have taken into consideration the financial impacts of COVID-19, and therefore have provided for a 0 percent COLA increase and 0 percent pay for Performance increases for 2021 per Council directives. There is still some uncertainty as to the future financial impacts and the extent of COVID-19, and it is still too early to assess 2021 operating impact. Exhibition Place staff have developed a 2021 status quo Operating Budget that is consistent with 2020 budget principles with a nil ($0) increase over the 2020 Operating Budget. This preliminary budget plan will not have an impact on the City property tax base year-over-year. Wages and benefits cost saving from delaying in hiring replacements for management staff who retired in 2020, temporary laid off of casual/temporary staff, and reduction in volume of base building maintenance and overtime. Staff are optimistic that although the volatility of COVID-19 may not be completely gone, the exhibition business will return to some normalcy in a COVID-19 world, but are aware that measures may have to be taken again for 2021 with similar financial impact as in 2020. The measures taken to mitigate the risk of additional lost business or increase in costs due to COVID-19 is that all non-essential costs have been delayed/deferred, and discretionary expenditures such as travel, training, etc. has been eliminated. COVID-19 costs include both ongoing day to day service costs, as well as, restart/recover/rebuild costs.
The Board of Governors of Exhibition Place: 1. Approved the 2021 Operating Budget attached as Appendix A to the report (October 9, 2020) from the Chief Executive Officer, Exhibition Place. 2. Requested that City Council transfer any surplus above budget target for 2021 to the "Exhibition Place Conference Centre Reserve Fund". 3. Directed the Chief Executive Officer, Exhibition Place to submit the 2021 Budget to the City Financial Planning Division as part of the 2021 Budget Process, with a cover letter identifying the preliminary status, the zero-based change assumption responding to the City instructions, and comments to advise that the board will be considering a revised budget the coming months which may have material changes.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board approve the 2021 Operating Budget attached as Appendix A. 2. The Board request that City Council transfer any surplus above budget target for 2021 to the "Exhibition Place Conference Centre Reserve Fund". 3. The Board direct the Chief Executive Officer to submit the 2021 Budget to the City Financial Planning Division as part of the 2021 Budget Process.
EP14.3adopted
Withrow Common (formerly Queen Elizabeth Executive Offices) Lease
The Board and the Canadian National Exhibition Association (CNEA) (the "Tenant") entered into a lease for the Queen Elizabeth Executive Offices (renamed Withrow Common) and certain ancillary areas dated November 1, 2016, which expires on October 30, 2020 (the "Existing Lease"). The Tenant requested a 5-year extension of the Existing Lease with respect to Withrow Common, commencing November 1, 2020 and concluding October 30, 2025 which was approved by the Board at its meeting of September 19, 2019. In close consultation with the provincial and municipal governments, the CNEA Board of Directors voted on May 7, 2020 to cancel the event this year out of an abundance of precaution to safeguard the health of its employees, volunteers, visitors, vendors, and artists, and its shared responsibility in protecting public safety during this unprecedented health crisis. On May 12, 2020 the Tenant through a press release announced that Canada's largest fair and an iconic Toronto celebration, will not light up this summer, and with the support of the Province of Ontario and City of Toronto, this year's CNE will not move forward due to the COVID-19 pandemic with its 18-day event slated for August 21 to September 7, 2020 at Exhibition Place. The historic decision marks only the second occasion in its 142-year history, and not since WWII, has the CNE closed in its entirety. With the impact from the cancellation of the 2020 fair the Tenant will likely face financial challenges in 2020 and beyond, and therefore at this time the Tenant is unable to commit to a 5-year lease. The Tenant's Board is requesting a one-year lease instead, commencing November 1, 2020 and ending October 30, 2021; with four one-year extension options, provided written notice is given to the Landlord two months before the then existing expiration date, and with an early termination provision in favour of the Tenant effective December 31 in each of year 3, 4, and 5. Since the Tenant took possession of Withrow Common in 2016, the Tenant has completed significant renovations in the leased premises as follows: - The CNEA invested in excess of $300,000 in leasehold improvements. - Reception area, lobby, and central common area - painting, kitchen, flooring, washrooms, and lighting. - Leasehold improvements concentrated on 'green' initiatives, and where possible eco-friendly choices were utilized in paint, lighting, and flooring finishes.
The Board of Governors of Exhibition Place: 1. Subject to obtaining the necessary City of Toronto authorization, approved a new lease (the Lease) between the City of Toronto, as landlord (the Landlord), CNEA, as tenant (the Tenant), and the Board, for a term of one (1) year commencing November 1, 2020 and ending October 30, 2021, with four (4) one (1) year Tenant options to extend, substantially on the terms and conditions set out in Appendix A and Confidential Attachment 1 to the report (October 9, 2020) from the Chief Executive Officer, Exhibition Place, and such other terms and conditions deemed appropriate by the Deputy City Manager, Corporate Services (the DCM), the Chief Executive Officer, Exhibition Place (the CEO) and in a form satisfactory to the City Solicitor . 2. Authorized the Chief Executive Officer, Exhibition Place to request the necessary City of Toronto authorities to approve and enter into the Lease. 3. Directed that Confidential Attachment 1 to the report (October 9, 2020) from the Chief Executive Officer, Exhibition Place remain confidential in its entirety and not be released publicly, as it pertains to a proposed or pending acquisition or disposition of land by the City and the Board.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. Subject to obtaining the necessary City of Toronto authorization, the Board approve a new lease (the Lease) between the City of Toronto, as landlord (the Landlord), CNEA, as tenant (the Tenant), and the Board, for a term of one (1) year commencing November 1, 2020 and ending October 30, 2021, with four (4) one (1) year Tenant options to extend, substantially on the terms and conditions set out in Appendix A and Confidential Attachment 1, and such other terms and conditions deemed appropriate by the Deputy City Manager, Corporate Services (the DCM), the Chief Executive Officer, Exhibition Place (the CEO) and in a form satisfactory to the City Solicitor . 2. The Board authorize the Chief Executive Officer to request the necessary City of Toronto authorities to approve and enter into the Lease. 3. The Board direct that Confidential Attachment 1 to this report remain confidential in its entirety and not be released publicly, as it pertains a proposed or pending acquisition or disposition of land by the City and the Board.
EP14.4adopted
Chiller Replacement at Enercare Centre
This report recommends approving a contract with Bird Mechanical Ltd. of Newmarket, Ontario for replacement of Chiller No. 2 at Enercare Centre ("ECC"). The Tender Call was issued on March 2, 2020, through Exhibition Place Purchasing and Materials Stores Online Procurement System and on MERX Canada's leading electronic tendering service for Canadian public sectors organization, and the recommendation is to award the contract to the lowest bidder meeting specifications within the available budget. Due to COVID-19 and the cancellation of the April 22, 2020 Board meeting, in order to meet timelines for contract documentation and operational needs, the Chair of the Board in consultation with the CEO of Exhibition Place, approved this contract award pursuant to the authority under the Financial By-law 2-18, Article X and seek concurrence of the Board.
The Board of Governors of Exhibition Place: 1. Concurred with the action taken by the Chair of the Board and the Chief Executive Officer, Exhibition Place in approving the award of Contract No. 20-076-20762 (Request For Tender Number EP101-2020) to Bird Mechanical Ltd. of Newmarket, Ontario (Bird) for replacement of Chiller No. 2 at Enercare Centre in the amount of $1,611,868.00 plus a contingency allowance of $100,000.00 but excludes HST; this being the lowest acceptable tender submission received following the public tendering of the project.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board concur with the action taken by the Chair of the Board and the Chief Executive Officer in approving the award of Contract No. 20-076-20762 (Request For Tender Number EP101-2020) to Bird Mechanical Ltd. of Newmarket, Ontario (Bird) for replacement of Chiller No. 2 at Enercare Centre in the amount of $1,611,868.00 plus a contingency allowance of $100,000.00 but excludes HST; this being the lowest acceptable tender submission received following the public tendering of the project.
EP14.5adopted
Exhibition Place Hotel X Development - Phase 2 Lands Design Concept Presentation
At its meeting of October 8, 2009, the Board of Governors approve of entering into a 49-year lease agreement with two 25-year renewal terms with HKH, which report was subsequently approved by City Council at its meeting of November 30, December 1, 2, 3, 4, 7, 2009 (EX36.3). The 750,000 square feet first phase Hotel opened for operations on March 20, 2018, with the hotel development consisting generally of a podium and tower (29 floors for the tower, 404 rooms, and 411 underground parking spots). Under the current lease for Hotel X, the tenant Princes Gate Hotel Limited Partnership ("HKH") has an option to lease certain phase 2 lands to the west of the current property. By letter dated July 31, 2020 HKH gave formal written notice to the Board Chair and CEO of Exhibition Place that it wishes to exercise that option for the 2nd tower and other related amenities. The financial terms and conditions and concept/specifications/design plan surrounding the phase 2 parcel of lands need to be negotiated in advance between the parties and once finalized shall be subject to review and approval by both the Board and City Council. At its meeting of September 18, 2020 the Board received an information report on Hotel X Development - Phase 2 Lands, that the Tenant wishes to exercise its option rights for the 2nd tower and other related amenities after have they give formal written notice. The Board Decision resulted in the following adopted Motions: 1. Requested the Chief Executive Officer, Exhibition Place to commence discussions with City of Toronto Corporate Real Estate Management staff and Hotel X representatives to start negotiations on the Phase 2 development and report back to the Board on: the results of the discussions; terms and conditions for the development, including design concept; an overview of the approval process; and how the development will take into consideration the recent Exhibition Place Master Plan Hotel X principal shareholder, Mr. Henry Kallan and its Partners will be attending the Board meeting of October 26, 2020 to do a power point presentation on the progress o f the Phase 2 development design concept to date for the benefit of the Board Members .
The Board of Governors of Exhibition Place: 1. Received the report (October 9, 2020) from the Chief Executive Officer, Exhibition Place for information.
Staff recommendation as filed
The Chief Executive Officer, Exhibition Place recommends that: 1. The Board receive this report for information.
EP14.6received
Exhibition Place Recovery and Reopening
Laura Purdy, General Manager and Matthew Buckles, Facility Coordinator, Exhibition Place will give a presentation on Exhibition Place Recovery and Reopening. The presentation offers an explanation of the Recovery and Re-opening Protocols being implemented by Exhibition Place to ensure the safety of staff, clients and visitors, when it is permitted for business to resume.
The Board of Governors of Exhibition Place received the item for information.
EP14.7adopted
Ensuring Good Jobs from Future Projects and Developments at Exhibition Place
Questions have been raised regarding existing leaseholders and development at Exhibition Place, and how the City's policies and the Board of Governors can contribute to creating good quality work for Toronto residents. I am requesting that the Chief Executive Officer review this issue and report back with options to ensure that high quality jobs with full-time hours, fair wages, and benefits are being created at Exhibition Place.
The Board of Governors of Exhibition Place: 1. Directed the Chief Executive Officer, Exhibition Place to review and report back on options for the Board to ensure that high quality jobs with full-time hours, fair wages, and benefits, are being secured through future development of the land and other projects at Exhibition Place, including review of relevant City of Toronto policy such as the Fair Wage Policy.
Staff recommendation as filed
Councillor Joe Cressy recommends that 1. The Board direct the Chief Executive Officer to review and report back on options for the Board to ensure that high quality jobs with full-time hours, fair wages, and benefits, are being secured through future development of the land and other projects at Exhibition Place, including review of relevant City of Toronto policy such as the Fair Wage Policy.