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Executive Committee - June 25, 2007 Decision Document

EX10.7 ACTION Amended Ward: 21, 22 Casa Loma Operations and Governance

(June 8, 2007) Report from the Deputy City Manager

Committee Recommendations

The Executive Committee recommends that:

1. Council adopt a vision for Casa Loma to ensure that:

a. Casa Loma’s programming, curatorial focus and interpretation fully reflect its

Edwardian heritage, tell the story of Toronto in that era, and reflect the

imagination, energy and innovation present in Toronto in the early 20th century;

b. complementary programming, heritage walks, signage and marketing create a

heritage precinct that links the Casa Loma estate to Spadina Museum and the

City Archives, two important City assets in the neighbourhood; and

c. a refreshed visitor experience and stimulating heritage tours attract a greater

number of Torontonians to the Casa Loma estate.

2. the City Manager and the Chief Corporate Officer, in conjunction with the General

Manager of Economic Development Culture and Tourism, be authorized to negotiate

and report back on a long term extension to the Licence Agreement with the Kiwanis

Club for the operation of Casa Loma that implements the vision for Casa Loma

through:

a. enhanced heritage programming;

b. new visitor amenities;

c. expanded governance through the terms of reference, structure and composition

for the Kiwanis Board of Trustees to ensure balanced representation of

community and City interests;

d. a restructured financial arrangement that continues Casa Loma as a self-sustaining

operation and maintains contributions to the exterior restoration project;

e. City approval for all alterations to the building and sub-licence agreements;

f. a term of up to 20 years with performance benchmarks and a full review after

three years;

g. annual progress reports to the Economic Development Committee; and

3. the following motion be referred to Deputy City Manager, Sue, Corke, for

consideration as outlined in Recommendation 2. above:

. Moved by Councillor Moscoe:

"That more than 50 percent of the appointees in the Casa Loma Board be City

appointees and additionally that the Chair of the Board be appointed by the

City;"; and

3. the appropriate officials be authorized to take the necessary action to give effect

thereto.

Financial Impact

There are no immediate financial implications arising from the adoption of this report. Under the current Licence Agreement between the City and the Kiwanis Club, the City receives a share of operating revenue.

Executive Committee - June 25, 2007 Decision Document

The entire amount is placed in the Casa Loma Reserve Fund to partially fund the exterior restoration project. In 2006, payments to the City totalled $923,000 and similar payments are expected until the end of the current Licence Agreement. The 2007 approved EDCT capital budget for the exterior restoration is $4.110 million gross and $1.810 million net and will not be impacted by this report.

The City does not contribute to the operating budget of Casa Loma and the 2007 Operating Budget will not be impacted by this report. In the longer term, it is anticipated that the new vision and governance structure for Casa Loma will result in an increase in revenue that will offset the proposed increased investments in programming and interior restoration while maintaining the contribution to exterior restoration.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Summary

Casa Loma was built by Sir Henry Pellatt between 1911 and 1914 as his principal residence. After the collapse of Sir Henry’s business empire in 1924, Casa Loma was acquired by the City in lieu of back taxes. Since 1937, the estate has been operated by the Kiwanis Club of Casa Loma as a heritage tourist attraction with the City responsible for the exterior of the building.

This situation became critical in 1997 when a Restoration Master Plan revealed that it would cost $20 million to restore and rebuild the exterior walls of the building. The health and safety concern was so great that Casa Loma was in danger of being forced to close.

In 2003, City Council made the restoration of Casa Loma a corporate priority. By coming to terms with the capital restoration of the exterior of Casa Loma, the City became keenly aware of its stewardship responsibility and was troubled by the condition of the interior of the building. The Casa Loma Advisory Committee and subsequent consultation have revealed a general consensus on a new vision for Casa Loma and on the need for revitalization of the interior and public programs.

In response to the report of the Casa Loma Advisory Committee and vision for Casa Loma, the Kiwanis Club has prepared a plan that includes enhanced heritage programming, new visitor amenities and expanded governance. City staff support the directions outlined in the Kiwanis Club plan for Casa Loma and recommend the negotiation of a long term extension to the Licence Agreement to realize the vision.

Background Information

Executive Committee - June 25, 2007 Decision Document

Casa Loma Operations and Governance

(http://www.toronto.ca/legdocs/mmis/2007/ex/bgrd/backgroundfile-5069.pdf)

Report of stakeholder consultations in respect of Casa Loma Advisory Committee report and final

recommendations

(http://www.toronto.ca/legdocs/mmis/2007/ex/bgrd/backgroundfile-5071.pdf)

Kiwanis Club of Casa Loma - Casa Loma Day - Visitor Experience Concept

(http://www.toronto.ca/legdocs/mmis/2007/ex/bgrd/backgroundfile-5113.pdf)

Casa Loma Connection (Executive Summary)

(http://www.toronto.ca/legdocs/mmis/2007/ex/bgrd/backgroundfile-5114.pdf)