11. Provincial Support

A. Bid letter

B. Critical post commitment expectations

C. Agreements

D. Principles

A. Bid letter

After consideration by the Government, the successful requestors can normally expect to receive a letter of support for use in their Bid books.

A second related funding letter is often sent to requestors, which outlines the Government’s fiscal commitment for Bid Budget purposes, and any additional conditions that might be associated with the Government commitment towards the costs of hosting an event.

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B. Critical post commitment expectations

It is particularly important for requestors to note that provincial support commitments made under the Policy carry with them a number of post-commitment expectations. Attention is particularly drawn to the need to understand that:

• The amount of the total event budget must not be increased without Ministry consent before the award of an event.
• The requestor will be responsible for creating a non profit organization for the planning and management of the event before the award, in the case that the event is won, and for ensuring that the created non profit organization will be responsible for all obligations and responsibilities assumed by the requestor.
• New athletic facilities being built as part of the event need to be accessible to the public for post-event sport and recreation use.
• Funding will not flow without the completion of required agreements.

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Hosting of sport events is a complex matter, particularly when it involves larger scale international events involving multiple parties.

To support the successful co-ordination and planning of an international event, the Ministry, like the federal government, favors the development of a multi-party agreement for larger events. This is generally understood to be involving requests in the amount of $2M or more.

In sport bidding and hosting circumstances, multi-party agreements are expected to set out mutual expectations about respective financial commitments, governance, accountability, reporting, and dispute resolutions for the post-award period.

For amounts involving less than a $2 M request and in situations where there is no multi-party agreement completed, the Ministry anticipates that it will enter into a single party contribution agreement.

It should also be understood that the Government may require additional contribution agreements for the flow of any funds for an event, that funding will only be flowed to a non profit or municipality, and any agreements to which the Ministry is a party must be acceptable to the Ministry in form and substance.

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D. Principles

The terms and conditions of Provincial financial support will be set out in one or more funding agreements between the Ministry and the requestor. The principles which will form the foundation of such agreements are set out below.

In submitting a request for Provincial substantial support, the requestor is deemed to acknowledge and accept these principles.

The following is provided for information only.

Please note that these are minimum requirements.

The Ministry may revise any of the following, or may impose additional requirements, in its sole and absolute discretion.

Also, there may be multiple agreements, and there may be multiple parties to any agreement, depending on the nature and scope of the particular international event.

The Crown in right of Ontario (“Ontario”) shall not be liable to any person for any harm, loss or damage, including claims for detrimental reliance that may arise in connection with the receipt or use of this information.

The requestor is deemed to acknowledge and accept the foregoing.

• Terminology:
  1. “Hosting an International Event” means planning, organizing, managing, promoting and conducting an International Event;
  2. “International Event” means a sports event which is sanctioned by an international sport federation recognized by the International Olympic Committee or an International Games Federation, and awarded through a formal bidding process;
  3. “Project” means all of the actions and deliverables to be undertaken or provided in the course of Hosting an International Event;
  4. “Provincial Funds”, “Provincial Funding” and “Provincial Contribution” means the funds to be provided by Ontario to a Recipient which has been awarded the right to Host an International Event;
  5. “Recipient” means an entity which has sought and received a commitment for Provincial Funding to assist it in Hosting an International Event.
• The Recipient must, in all instances, be a not-for-profit corporation or a municipality. The Recipient is responsible for establishing a non-profit corporation which will be responsible for Hosting the International Event, if the bid is successful. The Recipient will ensure that the not-for-profit corporation assumes all of the Recipient’s obligations and responsibilities under the Contribution Agreement and all other agreements which the Ministry and the Recipient may enter into in relation to the Project. If requested by the Ministry, the Contribution Agreement will give the Ministry the right to approve the not-for-profit corporation’s objects. Ministry staff will be permitted to attend the not-for-profit corporation’s board meetings and to receive reasonable notice of such meetings and copies of agendas, minutes and other relevant material. If requested by the Ministry, the Contribution Agreement will also give the Ministry the right to appoint one or more persons and members and directors of the not-for-profit corporation. The dissolution of the not-for-profit corporation will require the Ministry’s approval.
• If Ontario decides to contribute to the cost of Hosting an International Event, the following conditions must be satisfied prior to Ontario providing any Provincial Funds to the Recipient:
  
  1. The international governing body awarding the International Event to the Recipient;
  2. The conclusion of a Contribution Agreement between the Ministry and the Recipient, in form and substance satisfactory to the Ministry, within the time frame established by the Ministry; and
  3. The conclusion of any related agreements, in form and substance satisfactory to the Ministry, and within the time frame established by the Ministry, as may be required by the Ministry and/or third parties who are also contributing to the cost of Hosting the International Event.
• The Recipient must complete the Project in compliance with the Contribution Agreement and any other related agreements between the Ministry and the Recipient. The Ministry will have no responsibility for completing the Project.
• The Recipient will advise the Ministry of any material change to any other agreements which the Recipient has entered into with respect to Hosting the International Event.
• The Provincial Contribution may be used only for such purposes as specified in the Contribution Agreement and related agreements between the Ministry and the Recipient.
• Any payment by Ontario is subject to an appropriation for the fiscal year in which the payment is to be made and funds being available. Should the Provincial Funds be reduced or otherwise become unavailable because of a non-appropriation by the Legislative Assembly of Ontario, Ontario may reduce the amount of funding and/or terminate the Agreement or Agreements upon giving notice to the Recipient.
• The total amount of the Project budget must not be increased, during the bid phase, without the Ministry’s prior written consent. Any changes to the Project budget after an International Event has been awarded require the Ministry’s prior written consent.
• The Recipient must hold the Provincial Contribution in a separate interest-bearing account and must account to the Ministry on all interest earned. All interest earned on the Provincial Funds belongs to Ontario. The Recipient will use such interest only for the purpose of completing the Project, or as otherwise agreed to by the Ministry, and will return the interest to the Ministry immediately upon the Ministry’s request.
• Any unused Provincial Funds belong to Ontario and shall be returned by the Recipient upon the Ministry’s request.
• Any part of the Provincial Funds which is not used in accordance with the Contribution Agreement or other related agreements between the Ministry and the Recipient will belong to Ontario and will be used only for purposes agreed upon by the Ministry, or returned to Ontario immediately upon the Ministry’s request.
• The Ministry reserves the right to charge interest on any amount owed by the Recipient.
• The Recipient must provide or raise any additional funds necessary to complete the Project in accordance with the Contribution Agreement and all other related agreements between the Ministry and the Recipient.
• Ontario will not be responsible for any deficit incurred in connection with the Project. Ontario will also not provide any revenue guarantees or assume any other contingent liabilities, associated with the Project.
• Ontario will also not be responsible for any environmentally related liabilities associated with the Project, or for any related costs.
• The Project must be conducted in accordance with all applicable federal, provincial and municipal laws, regulations, orders, rules and by-laws.
• The Recipient must make such representations and warranties as the Ministry may require, including, but not limited to the following that:
  • It has the power and authority to carry out the terms of the Agreement
  • It has provided the Ministry with all material information relating to the Project in its request for Provincial Funding and that all such information remains true, correct and complete in every respect and omits no material fact necessary to make such information not misleading, except as set out in the Agreement;
  • It is qualified to do business wherever necessary to carry out the terms of the Agreement; and
  • It is not a party to any agreement, business or other relationship that may conflict with the agreement.
• Ministry staff will be permitted to attend the Recipient’s board, planning and other meetings, and the Recipient will provide the Ministry with reasonable notice of such meetings and copies of agendas, minutes and other relevant material.
• If requested by the Ministry, the Contribution Agreement will also give the Ministry the right to appoint one or more persons as members and directors of the Recipient’s board of directors.
• The Recipient will ensure that all materials, programs, advertising and publicity relating to the Project includes the Province of Ontario logo, if required by the Ministry in accordance with Ontario’s Visual Identity Directive, together with such acknowledgements of Provincial support as the Ministry may require.
• The Recipient will ensure that Ontario is treated in the same manner and afforded the same visibility as other levels of government and premium sponsors. This includes being given a similar opportunity to participate in VIP events and in the presentation of awards.
• The Recipient will undertake, at no cost to the Ministry, a post-event economic impact study, based on expenditure surveys that will allow the Recipient to report on projected economic performance objectives. The Recipient will also undertake other tourism and economic impact studies as specified by the Ministry and using methodologies approved by the Ministry. The Recipient will ensure that the Ministry has a nonexclusive, perpetual, irrevocable, world-wide, and fully paid up and royalty free license to reproduce, modify and/or publish the results of any of these studies.
• Both official languages must be used for public information, signs and materials relating to the Project, in accordance with the French Language Services Act (Ontario).
• The Ministry is bound by the Freedom of Information and Protection of Privacy Act (Ontario). Any information provided to the Ministry is subject to disclosure in accordance with the requirements of that Act.
• The Recipient will ensure compliance with the Personal Information Protection and Electronic Documents Act (Canada) if that Act applies to the Recipient or to the Project.
• Upon request, the Recipient will comply with such other Provincial policies as may be identified by the Ministry in writing.
• The Recipient must ensure that the Contribution Agreement and other related agreements are carried out and the Provincial Contribution used without a conflict of interest.
• Goods and services, including the acquisition of any interest in real property and the construction or renovation of facilities,shall be acquired through a competitive, fair, open and transparent process.
• The Ministry may require a further agreement or agreements, in form and substance satisfactory to the Ministry relating to any long-term “legacies” that may be associated with the International Event, including but not limited to the following :
  
  1. Restrictions on the post-event disposition of assets that are acquired, in whole or in part, using Provincial Funds;
  2. The post- event public right to access facilities that are acquired, constructed or renovated, in whole or in part, using Provincial Funds; and
  3. The funding and administration of any legacy or endowment funds that may be established in connection with the International Event.
• The Recipient will provide the Ministry with the following reports: interim progress and financial reports, which shall be submitted with such frequency as the Ministry requires; a final report, including final audited financial statements, upon completion of the Project; and such other reports as the Ministry may require from time to time. All reports will contain such information as the Ministry may require, including but not limited to updated financial information, including an explanation for budget variances, and reports on the achievement of performance objectives.
• The Recipient will keep all records relating to the Provincial Funding, or otherwise to the Project, in a manner consistent with generally accepted accounting principles and clerical practices and will keep them available for review by the Province for 7 years from the expiration or termination of the Agreement. The Ministry will have the right, on 24 hours notice, to enter the Recipient’s premises and inspect the records relating to the Provincial Funding or otherwise to the Project. The Ministry’s right of inspection includes the right to perform a full or partial audit.
• The Province, its officers, employees and agents will not be liable for any damages, injuries, costs, expenses, lost profits or any other losses of the Recipient arising out of or in any way related to the Project or to the Agreement.
• The Recipient will indemnify the Province, its officers, employees and agents against all damages, injuries, costs, expenses, lost profits, or any other losses arising out of or in any way related to the Project or to the Agreement, brought by any person, unless caused by the Ministry’s own negligence or wilful misconduct.
• The Recipient must obtain and maintain insurance acceptable to the Risk Management & Insurance Services, Shared Services Bureau, and Ministry of Government Services.
• The Recipient must not assign the Agreement or all or any part of the Provincial Contribution without the Ministry’s prior written consent.
• The Ministry reserves the right to terminate the Agreement, cancel the payment of the Provincial Contribution and request repayment of the whole or part of the Provincial Contribution, including interest, if the Recipient:
  
  1. Ceases to have the right to host the International Event, including situations where the International Event is cancelled or postponed;
  2. Ceases to operate or notifies the Ministry that it intends to cease operating;
  3. Does not use the Provincial Contribution to pay for the Project in accordance with the Contribution Agreement or any other related agreement between the Ministry and the Recipient, or as otherwise approved by the Ministry in writing;
  4. Has knowingly provided false or misleading information in its proposal for Provincial Funding or in any other communication with the Ministry or in any public communication regarding the Project:
  5. Breaches any term or condition of the Contribution Agreement or any other related agreement between the Ministry and the Recipient;
  6. Becomes bankrupt or insolvent or is placed in receivership or takes the benefit of any statute relating to bankrupt and insolvent debtors; or
  7. Uses any of the Provincial Funds for a political activity.
• At any time, at the sole discretion of the Ministry and upon reasonable notice, the Ministry may impose specific terms and conditions which it considers appropriate for the proper management and expenditure of the Provincial Funds.
• Ontario and the Recipient are and will at all times remain independent of each other and will not represent themselves to be the agent, joint venturer, partner or employee of the other.
• Neither party will be responsible for damage caused by delay or failure to perform the Agreement resulting from matters beyond the control of the Ministry and the Recipient.
• The Agreement will be governed and construed in accordance with the laws of Ontario and the parties attorn to the exclusive jurisdiction of the courts of the Province of Ontario.

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