Summary#
Montréal city council unanimously adopted an orientation in favour of approving an addendum to a promise to sell three city-owned lots to EJP Construction inc. The agglomeration council makes the final decision at a later meeting. The stated goal, according to city staff, is to enable housing and a grocery store on the site.
- The lots total 11,516.1 square metres in the borough of Mercier–Hochelaga-Maisonneuve. The resolution gives a price of $7,247,000, plus applicable taxes.
- The sale is planned in three phases: a lot for private housing and a 3,200-square-metre grocery store; a lot for private housing; and, last, a lot for affordable housing.
- The promise sets housing conditions: at least 40% of private homes must have two bedrooms and at least 10% must have three bedrooms. EJP is also committed to providing social and community housing equal to 20% of the site’s residential floor area, with financial compensation for any shortfall.
- The city would receive parkland rather than money for all park contributions. A temporary bank guarantee would cover any shortfall in land transferred during the first two phases.
- The addendum does not itself complete the land sales. The city says the deeds for the second and third lots will need later approval.
What it means for you#
- Residents and future occupants: If the planned development proceeds, it would include private housing, affordable housing, and a grocery store. The promise does not set the number of homes or explain how affordable housing will be priced or allocated.
- EJP Construction: The company would buy the lots in stages, with sales to be signed by December 31, 2025, March 31, 2027, and October 31, 2027. It must build each phase within four years of signing that phase’s deed.
- The city: It would sell the lots and receive parkland contributions. The sale is without warranty; EJP accepts the risks and says it has completed its checks on title and soil.
- Public process: City staff say EJP was the only bidder in a 2015 public call and its bid was judged compliant. The call was cancelled in 2021 because some bid requirements were not met; negotiations with EJP then continued directly.
Money#
The resolution states that the city would receive $7,247,000, plus applicable taxes; the buyer is responsible for GST and QST.
- The decision summary gives a different transaction amount: $7,247,800 after a $192,200 deduction for soil rehabilitation from a $7,440,000 sale price. The materials do not explain the $800 difference.
- City staff say the price matches the city’s estimate of market value. No estimate of the city’s administrative or other costs is provided.
What is unclear#
- The materials do not explain how the financial compensation for any social and community housing shortfall will be calculated.
- They do not give the number of homes planned, the terms for affordable housing, or how compliance with the housing commitments will be checked.
- The summary says the site has been divided into three sale phases, but the deeds for phases two and three still require later approval.
Case for#
- City staff say the land is surplus to the city’s needs and underused, and that development could bring housing and a grocery store to the area.
- The staged sale allows EJP to proceed with the grocery store and private housing first, while leaving the affordable-housing lot for the final phase.
- The promise includes housing mix requirements, a social and community housing commitment, parkland transfers, and a four-year building deadline for each phase.
Case against#
- The city is proceeding through direct negotiations after cancelling the public call for tenders because some requirements were not met. The materials do not compare this approach with a new public call.
- Affordable housing is planned for the last phase, with a deadline of October 31, 2027, to sign that lot’s sale. The materials do not say what happens to the overall project if that phase does not proceed.
- The stated transaction amount differs by $800 between the resolution and the decision summary, and the materials do not resolve the discrepancy.