2015 Pan/Parapan American Games Athletes’ Village Design, Build and Finance Project
|Areas||Banking and Finance Law, Commercial Real Estate, Construction and Infrastucture, Procurement, Public/Private Partnerships and Alternative Finance, Tax|
Goodmans represented Dundee Kilmer Developments Limited in connection with the design, build and finance of the 2015 Pan/Parapan American Games Athletes’ Village Project.
The project will advance implementation of Waterfront Toronto’s award-winning precinct plan for the West Don Lands area, and when complete in 2015, it will provide a beautifully designed, sustainable mixed-use riverside community to the wider area. The project will also provide accommodation to 10,000 Pan and Parapan athletes, coaches and team officials during the 2015 Pan/Parapan American Games.
The project includes the completion of: the next phase of West Don Lands infrastructure, roads and public spaces; a new 82,000 square-foot YMCA recreational facility; George Brown College’s first ever student residence; 787 units of market housing; 253 units of affordable rental housing; accommodations and facilities required for use during the Games; site preparation necessary to support temporary Games facilities; facilities management services during the Games; and the conversion of permanent facilities following the Games.
The project is a unique public-private partnership arrangement. The arrangement reduces the cost of building the community by enabling Dundee Kilmer to also construct additional market housing in a second phase of development after the Games. The fixed-price contract between Dundee Kilmer and the Province of Ontario is for $514 million, and will be paid in stages at significant construction milestones, to ensure the project’s on-time and on-budget delivery. The Province will recover approximately $65 million in development costs from future facility operators, for a total net provincial outlay of approximately $449 million.
The financing for the project comprises a short term credit facility in the aggregate amount of approximately $381 million and a long term credit facility in the aggregate amount of approximately $230 million and was provided by Bank of Montreal (as lender and hedge provider), Bank of Tokyo-Mitsubishi UFJ (Canada) (as co-lead arranger and lender), Canadian Imperial Bank of Commerce (as co-lead arranger, lender and hedge provider), Dexia Crédit Local, New York Branch (as co-lead arranger, lender and hedge provider), Royal Bank of Canada (as co-lead arranger, sole bookrunner, administrative agent, lender and hedge provider), Sumitomo Mitsui Banking Corporation (as co-lead arranger and lender), The Toronto-Dominion Bank (as co-lead arranger, lender and hedge provider), The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch (as hedge provider) and SMBC Capital Markets, Inc. (as hedge provider).