IHL Proposal for Coliseum Building,

National Trade Centre Complex

The Policy and Finance Committee recommends the adoption of the following report (September 9, 1999) from the Interim General Manager, Exhibition Place:

Recommendations:

It is recommended that Council accept the Offer to Lease and approve of a grant of a leasehold interest for 49 years to Coliseum Renovation Corporation ("CRC") for the Coliseum Arena in The National Trade Centre Complex ("NTC") on the terms and conditions as set out in Clause No. 7 of Report No. 4 of the Policy and Finance Committee adopted by Council on July 27, 28, 29 and 30, 1999, as amended and such other terms and conditions satisfactory to the City Solicitor, Interim General Manager of Exhibition Place and Board of Governors of Exhibition Place.

Background:

At its meeting of July 27, 28, 29 and 30, 1999, Council adopted Clause No. 7 of Report No. 4 of the Policy and Finance Committee entitled "IHL (International Hockey League) Proposal for the Coliseum Building - National Trade Centre Complex" which report requested that staff take all necessary steps to comply with By-law No. 551-1998 and report back to Council at its meeting of September 28, 1999.

Discussion:

The IHL proposal is for the development of the Coliseum Arena in the NTC by CRC to transform this venue into the new home of the IHL franchise formerly known as the "Phoenix Roadrunners". The proposal would see a capital investment by CRC in the Coliseum Arena of approximately $32 million that would upgrade the facility to a modern 11,000 seat hockey arena. Over the term of the lease, the Board of Governors would receive approximately $86 million of incremental revenues from rent, guaranteed parking revenues, management fees, and increase food and beverage revenues. In addition, the present users of the Coliseum will benefit from the upgraded seating, acoustics and climate control; the project will generate 107 person years of direct construction employment and approximately 130 person years of indirect employment; and the City will be in receipt of realty taxes paid by CRC on space that has been tax exempt.

The conditional Offer to Lease presented to Council provided for a lease term of 49 years and Council in approving this Report declared the Coliseum Arena surplus. In accordance with By-law No. 551-1998, a "Notice of Sale - Long Term Lease" was published in a daily newspaper on August 26, 1999, stating the pertinent details of the land disposition and lease terms. The deadline for enquiries as published in the Notice was September 8, 1999. No enquiries have been received and as requested by Council, I am now reporting back to the Policy and Finance Committee on this matter and requesting Council to accept the Offer to Lease on the terms and conditions set out in the Clause No. 7 of Report No. 4 noted above, as amended.

For the information of Council, a Sub-committee of The Board of Governors of Exhibition Place has been established chaired by Councillor Pantalone, Chair of the Board to finalize the details of the lease terms between the Board and CRC including the negotiation of a participation rent. As requested by Council, a staff person appointed by the Ms. Liczyk, C.F.O. and Treasurer is participating in this Sub-committee.

Conclusion:

This report outlines the actions that have been taken with respect to By-law No. 551-1998 as directed by Council.

Contact Name:

Dianne Young - 263-3611