GROWING VALUE IN THE PORT LANDS Toronto Port Lands Company: Corporate Plan 2014-2015 toronto port lands tplc company Table of Contents TPLC Fast Facts 3 Letter from the Chair, and President & CEO 5 Highlights 6 Corporate Profile 11 Strategic Goals and Objectives 24 Growing Value for Toronto 26 Finance & Administration 30 Board of Directors & Executive Team 33 TPLC Fast Facts: Close to $15.7 $0.5 billion million in revenues in land assets in 2013 Manages More than more 130 acres of brownfield lands restored than to productive use since 2009 $19.3 70 million paid in property tenants taxes since 2008 Manages more than a 100 $57.7 leases and short term licenses million in distributions to Owns and manages close to City programs and 400 acres agencies since 2009 in the Port Lands Operates rail and manages dockwall berthing Supports more than 23 properties 4,000 jobs with leasable buildings through its tenants Toronto’s waterfront is one of the city’s greatest historical, cultural, social and economic assets. TPLC’s commendable work in the Port Lands is an essential key to unlocking this potential and establishing a strong foundation for generations to come. — Councillor Michael Thompson Chair, Economic Development Committee Letter from the Chair, and President & CEO On behalf of the Toronto Port Lands Company (TPLC) and its Board of Directors, we are pleased to share our Corporate Plan for 2014-2015. This plan builds on our past achievements and provides an overview of our objectives moving forward, our recent accomplishments, and historical financial information. Change is already underway with the further development of new sound stages at Pinewood Toronto Studios and relocation of the Essroc terminals to the Eastern Port Lands. As the largest landowner in the Port Lands, TPLC has had the opportunity to partner and work with remarkable tenants, businesses, public organizations and investors over the years. We would like to extend our appreciation to all of our stakeholders for their insight, their expertise and their faith in our initiatives. By working with us, our partners enforce our belief that by linking public policy priorities with private sector needs we all gain a powerful advantage in reaching our collective goals. TPLC continues to grow value for the City with our strategy of proactive management of our property portfolio and business activities. We have increased our gross revenue base since 2009 by $2.6 million. In 2012, TPLC provided a $40 million special dividend to our shareholder and still retained a shareholder’s equity value of over $365 million. Working with our various partners and stakeholders on the waterfront, TPLC continues to support the revitalization of the Port Lands while continuing to deliver on attracting and retaining employment in the Port Lands. TPLC is the operating name for City of Toronto Economic Development Corporation, incorporated in 1986 under the Ontario Business Corporations Act. In 2014, we will continue to be aligned with the City’s policies, objectives and economic development strategies such as the new strategic plan for accelerating job creation and economic growth in Toronto called, “Collaborating for Competitiveness.” A small team of dedicated staff consists of highly qualified individuals with a long-term commitment and perspective with both private and public sector experience. The City of Toronto, our sole shareholder, continues to receive excellent value from its Corporation and can look forward to continued growth in 2014. We thank all of our stakeholders and look forward to working together in the future to continue to add value and contribute to the City’s economic development and growth opportunities. Mike Williams Michael Kraljevic Chairman of the Board President & CEO Corporate Plan 2014-2015 5 Highlights Pinewood Toronto Studios 225 Commissioners Street Pinewood Toronto Studios officially opened to the area. The first phase of the $60 million, for business in 2008. In 2013, as part of a 260,000 sq ft landmark studio complex opened $40 Million expansion plan in the Port Lands in 2008 and included a 45,000 sq ft purpose- Film Studio District, three new state-of-the-art built sound stage and created more than sound stages opened. TPLC completed a lease 600 jobs. Phase 2 is to include additional agreement with tenant Pinewood Toronto studios, office space, and other ancillary Studios to permit Pinewood’s expansion. The activities. The complex continues to attract Pinewood development has already started to jobs, increase revenues and investment transform the area. Pinewood Toronto Studios to the City, and realize the City’s economic will act as a catalyst to attract investment development objectives. and other related innovative and creative uses Left to right at launch of 3 new sound stages: Michael Kraljevic, Councillor Peter Milczyn, MPP Peter Tabuns, Councillor Paula Fletcher, Blake Steels, Alfredo Romano, Paul Bronfman, Pinewood Toronto Studio Representative, Minister Glenn Murray, Minister Michael Chan, Karen Thorne-Stone, Sarah Ker-Hornell 6 Toronto Port Lands Company Essroc Relocation 575 Commissioners Street The Port Lands remain a functioning port area and will continue to house industrial tenants. As part of the City’s consolidation strategy to relocate concrete and aggregate companies to the Eastern Port Lands, TPLC has worked closely with tenant Essroc to complete this multi-million dollar project. Construction was started in 2013 with one terminal put in service in 2014. TPLC has worked closely with the Toronto Port Authority and Waterfront Toronto to help relocate Essroc from its Cherry TPLC staff meets with Essroc and construction team in TPLC offices Street site to a new site just north of the ship channel alongside other like companies. Relocating heavy industry opens up prime property for redevelopment, allows for clean-up of contaminated sites, and maintains employment in the Port Lands. Essroc constructs silos on new site Corporate Plan 2014-2015 7 Highlights TPLC Presentation of Financial Dividend City of Toronto Toronto Port Lands Company presented a cheque from TPLC President & CEO, Michael special dividend amount of $40 million to its Kraljevic. The $40 million special dividend was sole shareholder the City of Toronto in April one of the largest dividends paid to the City 2012. Cam Weldon, Chief Financial Officer of by one of the City’s corporations. the City of Toronto at the time, received the City of Toronto CFO, Cam Weldon receives $40 million cheque from TPLC President & CEO Michael Kraljevic 8 Toronto Port Lands Company Better Buildings Partnership (BBP) Presentation Corus Quay, 25 Dockside Drive The City of Toronto’s Better Buildings Partnership (BBP) recognized Toronto Port Lands Company’s work in energy conservation at our Corus Quay development in 2013. The financial payback from the BBP-NC program was created as an incentive and a catalyst to encourage more projects to enrol in the BBP program and conserve energy. Savings generated by the Corus Quay project totalled $101,780.00 for a peak demand kW savings of 290.80. TPLC President & CEO Michael Kraljevic was presented the cheque in front of the building’s 5-storey living wall. Corporate Plan 2014-2015 9 We work closely with the City to accelerate economic growth and job creation while working with a wide range of public and private sector partners. Corporate Profile Toronto Port Lands Company (TPLC) is an remain mindful of our shareholder’s policies operating business and the largest landowner and objectives we also take our obligations in the Port Lands. With more than 400 acres as a business very seriously and continue in our portfolio, our tenants are minutes from to ensure we receive the best economic, the downtown core and nearby transit and environmental and social returns for highway access. the hundreds of acres of properties in the Port Lands. We are a completely self-financing municipal corporation wholly-owned by the City of TPLC’s mandate includes the provision, Toronto. Through our leasing, development, operation and improvement of sites, buildings brownfield reclamation and land management and facilities, and the making of grants or activities we finance our operations, provide loans to any person for the carrying on of funding to City programs, and have the ability promotional activities, all in relation to the to deliver a financial dividend back to the City. establishment and carrying on of industries In 2012 we provided the City with a $40 million and of industrial operations and related uses; special dividend. the sale of sites, buildings and facilities; and the ability to share profits and pay dividends TPLC developments include Pinewood Toronto to the City. The success of the central Studios, a major film studio complex that downtown Toronto area will depend in part anchors the Port Lands Innovation and on TPLC achieving our mandate. Creativity Cluster. Corus Quay is the award- winning landmark office and broadcast The Port Lands strategic location represents building and first LEED Gold building on a competitive advantage where many Toronto’s waterfront developed by TPLC. commercial, industrial, media and retail It was also named one of the 10 most service-oriented businesses can effectively impressive offices in the world. gain access to prospective and existing customers in the downtown core. TPLC’s We work closely with the City to accelerate advantage is that we are nimble and operate in economic growth and job creation while a commercial setting with a reasonable means working with a wide range of public and private of expediting transactions and operations. sector partners. As a municipal corporation, TPLC has a unique role that adds value to City With this strong foundation as an urban objectives. We contribute to broader city- development corporation and a history of building goals whether it is by strategic land award-winning developments, sustainable acquisition, problem-solving, relocating development and other initiatives, TPLC companies to prepare for redevelopment or continues to provide a major contribution collaborating on special projects.