Montreal backs five-year radio lease

Summary#

Montréal city council unanimously approved the city’s position in favour of a five-year lease to the Société québécoise des infrastructures (SQI) for radio equipment inside the Mount Royal telecommunications vault at 1100, chemin Camilien-Houde. The lease would run retroactively from January 1, 2023, through December 31, 2027; the stated goal is to support SQI’s radio communications. The agglomeration council makes the final decision at a later meeting.

  • The proposed rent is $384,930.21 before taxes for the five years. Taxes bring the total to $442,573.51.
  • The lease includes an option for one additional, consecutive five-year term on the same terms and conditions.
  • Rent includes energy, air conditioning, an emergency generator and site cleaning.

What it means for you#

  • SQI: If the agglomeration council approves the lease, SQI can keep its radio equipment in the vault for the lease term and may use the renewal option.
  • Montréal: The city would receive rent. City staff say the SQI equipment does not harm city equipment at the site.
  • Public: This is a lease decision, not a new public-facing service. City staff say the central site supports SQI’s ability to provide radio communication coverage in Montréal.

Money#

The lease would bring the city $384,930.21 in rent before taxes over five years.

  • The amount including taxes is $442,573.51.
  • The annual rent rises from $73,250 in 2023 to $81,408.16 in 2027. City staff say the previous annual rent was $54,000, indexed by 35.6% from January 1, 2023, and then by 3% each year from 2024.
  • The rent includes energy, air conditioning, an emergency generator and cleaning. No cost estimate for those services is provided.

What is unclear#

  • The materials do not say how or when SQI must exercise the five-year renewal option.
  • The materials do not compare the rent with the city’s costs for energy, equipment and site services.

Case for#

  • City staff say the vault has room for radio equipment and that SQI’s equipment does not harm the city’s equipment.
  • City staff say the central location helps SQI provide radio coverage across Montréal.
  • The lease would bring the city rental income, including payment for services listed as part of the rent.

Case against#

  • The materials do not show whether the rent fully covers the city’s costs for energy and other included services.
  • The lease includes a five-year renewal option, but the materials do not explain how it would be exercised.