Summary#
Montréal city council unanimously adopted a position on a proposed lease change and related budget adjustment. It is asking the agglomeration council to approve a 9-year-and-7-month lease of office space at 1611 boulevard Crémazie Est; the agglomeration council makes the final decision at a later meeting. The stated goal is to move two city services to suitable offices.
- The proposed lease is with Galion Équité S.E.C. for 43,850 square feet on the building’s 8th and 9th floors, starting August 1, 2026, for the Service de l’approvisionnement and Service des infrastructures du réseau routier.
- The lease cost is stated in the resolution as $14,487,192, taxes included. The city could return the 8th floor without penalty on December 31, 2032, if it gives at least 12 months’ written notice.
- The city could access the space from June 1, 2026, for work and to begin operations, without paying rent until August 1. The landlord would provide a $464,500 allowance, before taxes, for work.
- The council also adopted a position to increase the Service de la stratégie immobilière et de l’habitation’s 2028 budget base by $354,509, net of tax rebates.
What it means for you#
- City employees: If the agglomeration council approves the lease, the two named services would move into the new space. City staff say problems at their current offices have affected employee well-being and the use of the space.
- Taxpayers: The city would take on a long-term lease cost. City staff say it would be covered from the property service’s budget, offset by rent no longer paid for offices at 255 boulevard Crémazie Est.
- Residents and businesses: The decision does not directly change services, taxes, or rules for the public.
Money#
The proposed lease costs $14,487,192, taxes included; the staff summary gives the more exact total as $14,487,192.05.
- The staff summary gives the rent after tax rebates as $13,228,737.34 over the lease term.
- The city would also make a recurring $354,509 net budget adjustment for 2028.
- The summary says 86.32% of the space would be used by the procurement service, with that cost treated as a shared administrative expense. The road infrastructure service would use 13.68%; its share is split between agglomeration and central-city budgets.
- City staff estimate the average rent over the lease at $29.98 per square foot, before taxes, and say this is within their estimated market range.
What is unclear#
- The agglomeration council’s final decision is not included in these materials.
- The full lease terms are not provided, so details beyond those described here cannot be checked.
- City staff say Montréal plans to seek termination of its existing lease at 255 boulevard Crémazie Est and expect the owner may contest it. The materials do not say whether the city could owe rent there while that dispute continues.
- The materials do not describe a call for tenders or compare other possible spaces.
Case for#
- City staff say the current offices have problems affecting safety, comfort, and the services’ ability to work effectively.
- The new space is already fitted out and near the current offices, which staff say could allow a faster move.
- The option to return the 8th floor without penalty in 2032 gives the city some flexibility during a long lease.
Case against#
- The city would commit to a lease lasting more than nine years, with the option to return only the 8th floor under the stated terms.
- The materials do not describe other spaces or explain how this option compares with them.
- The existing lease dispute could leave the city facing uncertainty about its obligations at the old offices as well as the new ones.