(5.5) (5.5) Variance % 2020 - 2019 (20,000) (20,000) Variance $s 2020 - 2019 343,900 343,900 2020 Budget Proposed One-Time Adjustment Efficiencies (20,000) (20,000) PY Actuals Reallocation Volume/Price 2020 Additional Pressures Pressures Service Level/ City of Oshawa 363,900 363,900 2020 Base Operating Budget by Branch Budget 363,900 363,900 2019 Budget Approved 363,900 363,900 2019 Actuals Projected Tribute Communities Centre Tribute Communities Centre 118 Branch: Tribute Communities Centre Total Tribute Communities Centre

Page 1 Tributecommumt1es Tribute Communities Centre

99 Athol Street East, Oshawa, , Canada L1H 1J8 t. 905-438-8881 f. 905-432-2372 www.tributecommunitiescentre.com

Spectra Venue Management 2020 Operating Budget and Business Plan

30th September 2019

Overview:

The following is the Executive Summary for the Tribute Communities Centre which will briefly recap 2019 outcome projections, and highlight 2020 forecasts. At the time of this report, 2019 was tracking positive as the year was front loaded with many amazing shows such as Bryan Adams, Dierks Bentley, Luke Combs, Jeff Dunham, and Jerry Seinfeld. Event Revenue was further bolstered by a week long shoot for the television show Designated Survivor, and an Oshawa Generals deep playoff run that ended with the team bowing out to Ottawa in the Eastern Conference Finals. For the third and fourth quarters, a diverse number of events are scheduled including The Wiggles, two episodes of the Battle of the Blades, Rock the Rink with Tessa Virtue, and Patrick Chan, the Arkells, Paw Patrol, Johnny Reid, and Champions of Magic to name a few. Driven by our GREAT Experience customer service program and commitment, our team works hard to ensure amazing customer service and experiences that have resulted in the venue being currently ranked number 188 in the world among all venues by Pollstar Magazine, and number four in Canada for our size by Venues Today. The GREAT Experience program is Spectra's customer focused philosophy based on the five guiding principles that form part of Spectra's culture and include Greeting the customer to make them feel welcome, Relating to them to help recognize their needs, Exploring options and educating our guests to make experiences memorable, Addressing and responding to their needs, and finally Thanking the guest to show our appreciation for their patronage.

The first two quarters of 2020 appear to be shaping up in a similar manner to 2019, with Brantley Gilbert already on sale for January 24th, and a number of key names such as Miranda Lambert announcing that they will be playing Oshawa in 2020. It is hoped that we will enjoy another long playoff run with the Generals, and continue to fill in the event calendar through quarters three and four in order to close off the year in strong fashion.

Primary Tenants:

As mentioned, the Oshawa Generals enjoyed a long and successful season on the ice during the 2018/2019 season. Projections are that the team should continue to contend over the next several seasons. Paid attendance has continued to decline for the third straight year, however; turnstile which represents actual game attendance increased during last season which is an encouraging sign. The team, City and Spectra continue to discuss various marketing strategies and means of mutual support to ensure no stone is left th unturned in order to increase ticket sales and the chances for success. For the home opener September 29 , the Oshawa BIA played a significant role in working with the Generals, the City, and venue to develop a street festival to create awareness, activity and excitement for hockey fans and the community. As a result, attendance for the home opener was 5,644 which is our third highest home opener night attendance. It is hoped that new strategies the team is working on such as theme nights and marquee events will help ignite fan engagement and bolstering ticket sales and attendance for the upcoming season and beyond.

I This summer, team ownership made a significant financial investment within the venue by enhancing team facilities by constructing a player's lounge and study room, and expanded training facilities, and medical facilities which resulted in team spaces which are now second to none in the league. It is hoped that these world class amenities will aid the team in the highly competitive recruitment process and attract the best players available to consistently ice a competitive team while providing the players with the best facilities and care possible.

Facility Maintenance:

Spectra continues to be diligent in addressing ongoing repairs and maintenance within an aging facility. In 2019, significant investments were made in enhancements in the Tribute Communities Centre both inside and out.

Along with an annual $20,000 contribution to fleet reserve, Capital Projects completed for 2019 included:

► Purchase of a new Ice Resurfacer

► Annual Payment Towards New LED Lights

► Annual Contribution to New Sound System

► Purchase of Bowl Seating Parts

► Addition of Poly Carbon End Glass Stanchions and Lexan sheets

► Installation of additional Lifelines in the high steel

► Annual Payment to Point of Sale System Purchase

► Miscellaneous IT Purchases and Enhancements

► Replacement of the three primary Hot Water Tanks

► Upgrade of the Emergency Generator

► Purchase of various Food and Beverage Equipment and Rubber Flooring

Major 2020 Capital Investments targeted pending Council funding approval include:

► Ice Plant Controls System Upgrade

► Ice Plant Compressor Replacement ► Ice Resurfacer (2nd of 2) ► Fire Suppression Upgrades

► Continued payments toward POS, Sound System, IT and Communications Systems, and Sport Lighting

► Concert Chairs

► Bike Rack Barrier/Tensa

► Fixed Seating

► Restaurant Entrance Floor

► Contribution to Fleet

► Rink 2 Desiccant replacement

2020 Budget Objectives and Assumptions:

The 2020 Tribute Communities Centre operating budget was developed with the following objectives and under the following assumptions:

► Due to current trend of front-loaded home schedule - one less budgeted regular season Oshawa Generals hockey game to start the 2020/2021 season. Per game attendance conservatively budgeted to remain consistent with 2018/2019 levels

II ► Consideration given to the impact of Durham Live as it comes on line in 2020. We do feel that due to its small venue capacity (2,500 seat vs original projections of 5,000); that it will have a minimal impact on our live event content. As such, we have budgeted a reasonable live event mix based on current confirmed events, holds and assumptions

► Suites Revenue calculated at 90% occupancy with addition increased rental revenues factored in.

► Increase in operational budget lines of $20,000 for additionally anticipated repairs and maintenance in various areas.

► Increase in ice sales to reflect increased usage over 2019 specifically in Durham Central Adult Hockey League registration.

Executive Summary: Over the past several years, significant capital investments have been made in a number of key areas including a 5.2mm HD centre hung score clock, colour LED sport lighting, and a new state of the art sound system to name a few. Operational staff continue to excel in maintaining the facility to ensure we honour our commitment to safeguard this important community asset. The Tribute Communities Centre is the complete package. It is a state-of-the-art facility with exceptional sight lines, food quality and selection not normally found in a secondary market arena, a staff committed to ensuring a GREAT customer experience which add up to a safe and memory creating community gathering place, truly a venue which is second to none in the OHL.

We are fortunate to have benefited from a number of great partnerships including the Oshawa Generals, the many promoters and organizations we work with, and title sponsors such as Tribute Communities, Labatt's, Pizza Pizza, and Coca Cola. We are also fortunate to have the unbelievable support of the numerous and highly talented members of City staff which our Spectra team have the pleasure to work along side of on a regular basis. They provide the guidance, resources and the unwavering support necessary to continue to grow and move ward increasing success. Spectra's credo is that "We Transform Events into Experiences" and through a c bined team effort that include Mayor and Council, City Staff and all our partners, I feel we have been able deliver.

Si erely,

Vince Vella General Manager

III TRIBUTE COMMUNITIES CENTRE BUDGET SUMMARY FY2020

FY2018 FY2019 FY2019 FY2020 ACTUAL BUDGET FORECAST BUDGET

RENTAL INCOME

# of EVENTS 95 86 98 89

DIRECT EVENT INCOME 734,143 785,200 650,000 694,700

FACILITY AND CONVENIENCE FEES 436,384 272,100 450,000 387,100

ANCILLIARY INCOME CONCESSIONS 563,345 569,400 700,000 626,700 SUITES CATERING 146,614 137,000 137,800 146,600 RESTAURANT 139,952 180,400 200,000 195,400 NOVELTIES 45,951 47,200 47,200 43,100

EVENT OPERATING INCOME 2,066,390 1,991,300 2,185,000 2,093,600

Suite Revenue 443,414 428,100 438,100 401,100 Interest, Dividends & Miscellaneous 82,767 61,200 61,200 62,400 Ice & Room Rentals 967,556 1,009,900 950,000 1,068,100 Advertising (Net of Expenses) 251,579 270,000 270,000 270,000 Naming Rights 214,500 202,000 202,000 202,000 Exclusivity Rights 45,000 45,000 45,000 52,500 F&B Sales (Net of Cost of Goods Sold) 64,586 103,600 63,600 81,000 ATM Surcharge Revenue 4,755 6,000 6,000 5,600 Spectra Fulfillment Revenue 10,834 10,000 10,000 6,000 Ticket Order Charges 106,798 74,000 74,000 87,500 TOTAL OTHER INCOME 2,191,788 2,209,800 2,119,900 2,236,200

TOTAL INCOME (EVENT & OTHER) 4,258,178 4,201,100 4,304,900 4,329,800

INDIRECT EXPENSES Executive & Admin 241,212 264,500 264,500 272,200 Marketing & Sales 216,394 272,200 272,000 297,500 Finance 276,821 291,000 291,000 301,300 Box Office 263,467 274,800 259,500 258,800 Operations & Event Services 1,949,149 1,863,900 1,901,500 1,919,800 Food & Beverage 633,633 662,500 644,200 659,600 Ice Rentals / Leagues 283,576 291,600 306,400 299,200 Overhead 628,542 644,500 674,500 665,300 TOTAL INDIRECT EXPENSES 4,492,792 4,565,000 4,613,600 4,673,700

NET OPERATING INCOME (LOSS) (234,614) (363,900) (308,700) (343,900)

IV