Montreal extends three-year market lease

Summary#

Montréal city council approved a three-year extension of the city’s commercial lease to Gestion LCBH inc. for a shop at 350 rue Saint-Paul Est, in Marché Bonsecours (Bonsecours Market). The lease runs from January 1, 2026, and brings the city total rent revenue of $160,449.96, excluding taxes.

  • The tenant, which operates L’Épicerie du Marché, keeps the approximately 89-square-metre (959-square-foot) space for commercial use.
  • The rent rises by 2% each year. The tenant must also pay property taxes if applicable; operating and energy costs are included in the rent.
  • The tenant is responsible for arranging, maintaining and cleaning the space, and for repairs due to normal use.
  • A further three-year renewal option is in the existing lease, but would need approval in 2029.

What it means for you#

  • Gestion LCBH inc.: The company can continue operating its shop at the site for three more years under the extension. It pays the rent, applicable property taxes, and the upkeep and repairs described in the decision summary.
  • City of Montréal: The city remains the landlord and receives the rent. The decision does not create a new public service or change rules for residents generally.

Money#

The city is to receive $160,449.96 in rent, excluding taxes, over the three-year term.

  • The decision summary lists total receipts, including GST and QST, of $184,477.34.
  • The city’s 2025 planned operating costs for this space—energy, routine maintenance and security—are about $13,000. The materials do not estimate these costs for the extension period.

What is unclear#

  • The full lease extension is not included, so its other terms and conditions cannot be checked.
  • The materials do not say whether property taxes will be payable during the extension.
  • The city’s operating costs for 2026–2028, and the net revenue after those costs, are not given.

Case for#

  • City staff say the space is not needed for municipal purposes and that the 2026 rent rate matches market rental value.
  • The extension provides rent revenue and lets the existing commercial tenant continue using the space.

Case against#

  • The rent includes operating and energy costs, but the city’s estimate of those costs is for 2025 only. The materials do not show the city’s net return over the extension.