Summary#
Montréal city council adopted a decision approving the loss of interest income linked to the ended lease with Santé Québec, and directing that loss to be charged as set out in the file’s financial information. The staff report says the lease for space at the Pavillon Lafontaine, 1301 rue Sherbrooke Est, ended on November 30, 2024; city staff say they negotiated the end of the lease to limit lost revenue.
- The lease covered 10,907.25 square metres and was held by Santé Québec through the CIUSSS du Centre-Sud-de-l’Île-de-Montréal.
- The staff report says rent under the lease applied through November 30, 2024, although the CIUSSS left the building on October 18, 2024.
- City council approved the loss of current and future interest income related to the ended lease. The decision does not state the amount of that interest loss.
- City staff are considering future uses for the space, including community organizations and other city needs. This decision does not choose a new use.
What it means for you#
- Montréal residents: The city has approved recording the interest-income loss in its finances. The decision does not set out a direct payment or fee for residents.
- Community organizations and other possible users: City staff say their use of the space is being considered, but the decision does not grant them access or establish a process.
- The city: The property requires work to meet current standards, according to the staff report.
Money#
The decision approves an interest-income loss, but the available material gives no amount for that loss.
- City staff estimate the rent revenue lost because the lease ended early at $3,047,821.90, excluding taxes: $304,782.19 per month for 10 months. This is identified as lost rent, not as the amount of interest income approved by council.
- The decision says the interest-income loss must be charged according to financial information in the decision file; that information is not included here.
What is unclear#
- How the city calculated the current and future interest-income loss, and what its total amount is.
- Whether the financial information in the decision file sets a period or other limit for that loss.
- What will happen to the space, when it may be ready for use, and whether a community organization will occupy it.
Case for#
- City staff say they negotiated the lease termination to limit lost revenue, and that rent applied through November 30, 2024.
- Approving the accounting treatment makes clear how the city will record the interest-income loss linked to the ended lease.
Case against#
- The amount and calculation of the approved interest-income loss are not available here, making its full financial effect hard to assess.
- The staff report says the building needs work to meet current standards, but does not give the cost or timing of that work.