The Ford government has released the terms of the lease it signed with the Austrian company Therme in 2022 for the construction of a waterfront spa at Ontario Place. The lease is for 75 years with the option to extend for a further 20 years, with rental payments based on the company’s revenues. The government has emphasized that the public land has been lent to the spa company, not sold, and the deal prohibits Therme from running a shopping mall, casino, or condo towers on the site. Therme is also required to pay full property taxes to the City of Toronto. The lease includes expected payments from Therme, totaling $47 million in rent and $37 million in maintenance fees between 2034 and 2044.
The lease with Therme includes two types of rent payments. The minimum rent will be 3.5% of the assessed value of Ontario Place, indexed to inflation, with an estimated payment of $1.95 million in 2032. In years when the company generates higher revenues, it will also pay performance rent, which could amount to an additional $2.07 million per year. The government projects that it will receive a total of $1.1 billion in nominal rent payments from Therme over the course of the lease. Additionally, the government has committed to providing Therme with at least 1,800 parking spaces as part of the lease agreement.
Infrastructure Ontario published the lease with Therme on Thursday, outlining the terms of the deal and the benefits it is expected to bring for taxpayers. The lease marks the beginning of a partnership between the government and Therme to develop a massive waterfront spa at Ontario Place. The agreement prohibits Therme from developing certain types of facilities on the site and requires the company to make significant financial contributions to the government through rent and maintenance fees. The lease is set to commence in 2025, with the potential for extension based on performance and other factors.
The government’s decision to enter into a long-term lease with Therme for the development of a spa at Ontario Place has been met with both support and criticism. Proponents of the deal argue that it will bring economic benefits to the area, create jobs, and generate revenue for the government through rent payments. Critics, however, have raised concerns about the privatization of public land and the potential impact on the surrounding community. The government’s commitment to transparency in releasing the terms of the lease is seen as a step towards addressing some of these concerns and ensuring accountability in the development process.
The lease with Therme represents a significant investment in the revitalization of Ontario Place and the waterfront area in Toronto. The project is expected to attract visitors and contribute to the economic growth of the region, while also providing new recreational and wellness opportunities for residents. The government’s decision to partner with Therme reflects their vision for the future of Ontario Place and their commitment to fostering innovation and development in the area. With the terms of the lease now public, stakeholders can assess the potential benefits and risks of the agreement and provide feedback on the project as it moves forward.
Overall, the release of the terms of the lease with Therme marks a significant milestone in the development of a waterfront spa at Ontario Place. The agreement outlines the financial obligations of the company, the restrictions on development activities, and the expected benefits for taxpayers and the community. The lease reflects the government’s strategy to leverage private investment for the development of public assets and underscores their commitment to revitalizing Ontario Place as a vibrant and sustainable destination for residents and visitors. As the project moves forward, stakeholders will continue to monitor its progress and assess its impact on the surrounding area and the broader community.
