Order in Council 249/2018

On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

Whereas pursuant to clause (i) of subsection 7(4) of the Ministry of Infrastructure Act, 2011 (MOIA), the Minister of Infrastructure may make loans, in respect of any matter for which the Minister has responsibility under this or any other Act, subject to the approval of the Lieutenant Governor in Council;

Whereas under clause (i) of subsection 7(1) of the MOIA the Minister may engage in such activities, projects and programs as the Minister considers appropriate in the exercise of his or her authority and the performance of his or her duties, functions and responsibilities;

Whereas the Ottawa Young Men’s and Young Women’s Christian Association operating as National Capital Region YMCA-YWCA (“Ottawa YMCA”) is a not for profit corporation that provides various services to the community in centres located in Ottawa, including housing, childcare, health and fitness, sports, and recreation, specifically at community centres located at 180 Argyle Avenue and 265 Centrum Boulevard in the City of Ottawa (“Community Centres”);

Whereas on August 29, 2017 2588109 Ontario Inc. was assigned two mortgages with the Ottawa YMCA which are secured against the Community Centres and of which approximately $23,400,000, in addition to costs and interest, remains currently  outstanding (“Outstanding Amount”);

Whereas on August 31, 2017 2588109 Ontario Inc. delivered a demand to the Ottawa YMCA for the payment of the then Outstanding Amount;

Whereas the Ottawa YMCA is unable to pay the Outstanding Amount;

Whereas the Ottawa YMCA also has other secured and unsecured debts (“Other Debts”) in the amount of approximately $4,000,000;

Whereas 2588109 Ontario Inc. has applied to the Ontario Superior Court of Justice to have a receiver appointed for the Ottawa YMCA under the Bankruptcy and Insolvency Act (Canada) and the Courts of Justice Act for the purpose of marketing and selling the Community Centres and resolving the Outstanding Amount;

Whereas the receivership process may have a detrimental impact on the delivery of services to the community;

Whereas the Community Centres are considered to be infrastructure that delivers essential services to the Ottawa community;

Whereas the Minister considers it in the public interest that the Ottawa YMCA continue to provide services to the community;

Whereas the Ministry of Infrastructure has been working with the Canada Mortgage and Housing Corporation (“CMHC”) to assist the Ottawa YMCA with its financial situation;

Whereas CMHC and the Minister wish to contribute equally in provision of financing to the Ottawa YMCA for the purpose of paying the Outstanding Amount;

Whereas after conducting due diligence, the Minister may wish to provide a further loan to the Ottawa YMCA for the purpose of paying some or all of the Other Debts;

Now therefore, pursuant to clause (i) of subsection 7(4) of the Ministry of Infrastructure Act, 2011, the Minister is hereby authorized to make a loan or loans to the maximum amount of $27.5 million to the Ottawa YMCA for the purpose of allowing the Ottawa YMCA to pay the Outstanding Amount and some or all of the Other Debts subject to the terms and conditions of the loan or loans set out in one or more agreements.