Summary#
Montréal city council approved a five-year extension of the City’s lease to Groupe MTLDecor inc. The lease covers a 981-square-foot commercial unit at 350, rue Saint-Paul Est, in Marché Bonsecours, starting January 1, 2026. City staff say the space is not needed for municipal use.
- The City will continue renting the unit to Groupe MTLDecor inc. for commercial use.
- The total rent is $259,965, excluding taxes, for the five-year term.
- The tenant is responsible for fitting out, maintaining and cleaning the unit, and for ordinary repairs.
What it means for you#
- Groupe MTLDecor inc.: The company can keep using the unit for its business for five more years under the lease’s terms.
- Taxpayers: The City keeps the unit in commercial use and receives rent. This decision does not directly change public services or residents’ rights.
- The tenant: Must pay applicable property taxes in addition to rent. Operating and energy costs are included in the rent.
Money#
The City will receive $259,965 in rent over five years, excluding taxes.
- Including GST and QST, the listed rental total is $298,894.76. Any property taxes are additional, if applicable.
- City staff estimate 2025 operating expenses for the unit, including energy, routine maintenance and security, at about $13,000. The materials do not give a future cost estimate or the City’s net income after expenses.
What is unclear#
- The full lease-extension agreement is not included, so its detailed terms are not available. No publicly available information is provided on those terms beyond the details in the decision materials.
- The materials do not estimate operating expenses for the new five-year term.
Case for#
- City staff say the unit is not needed for municipal purposes, so continuing the lease allows the City to earn rental income from the space.
- City staff say the 2026 rent rate is in line with market rental value and the original lease.
Case against#
- The five-year extension commits the unit to commercial use, which may limit the City’s ability to use it for municipal purposes during that period if its needs change.
- The materials give a 2025 operating-cost estimate but do not show the City’s expected net income over the new lease term.