Consent for Refinancing Leasehold Interest,
Soccer City (Etobicoke) Inc.
(Markland-Centennial - Ward 4)
The Corporate Services Committee recommends the adoption of the following report (January 28, 1998) from the Commissioner of Corporate Services:
To authorize the appropriate City officials to provide consent as Landlord to Soccer City (Etobicoke) Inc., the City=s Tenant, to allow the Tenant to refinance its leasehold interest.
Funding Sources, Financial Implications and Impact Statement:
The proposed Consent Agreement provides that the City agree to a Waiver of Distraint where the Landlord (City) specifically waives its right to distrain against the chattels and fixtures of the Tenant in favour of any rights which the bank may have as security for the loan.
It is recommended that:
(1) the appropriate City officials be authorized to take all steps necessary to consent to refinancing by Soccer City (Etobicoke) Inc., of its leasehold interest, and agree to a Waiver of Distraint against the chattels and fixtures of the Tenant in favour of the bank; and
(2) the requisite documentation be signed by the appropriate signing authorities for the City of Toronto.
By virtue of a long-term (25-year) ground lease, Soccer City (Etobicoke) Inc., constructed an indoor soccer facility at 5429 Eglinton Avenue West, in 1988 on land owned by the former City of Etobicoke.
A portion of Soccer City=s private sector financing for the project was provided by a loan from the Business Development Bank of Canada in 1988. At that time, the bank required a Waiver of Distraint from the City in order to protect its security. The City of Etobicoke consented to the financing of the leasehold interest and the waiver.
The original loan of $300,000.00 has been mostly repaid and Soccer City is seeking new financing of approximately $100,000.00 from the Business Development Bank. The Tenant is seeking the City=s consent and the bank is again requesting a Waiver of Distraint.
Comments and/or Discussion and/or Justification:
Refinancing is required for the continued operation of the indoor soccer facility which is well utilized by local soccer enthusiasts.
The Municipality has agreed to similar requests in the past and the request is considered reasonable.
The request by Soccer City (Etobicoke) Inc., for consent has been submitted by the Tenant pursuant to paragraph 16.05 of its lease entered into with the former City of Etobicoke.
The request for consent and the attendant request for a Waiver of Distraint are deemed to be reasonable and acceptable.
Frank Bedard, Telephone: (416) 394-8096 Fax: (416) 394-8895