Summary#
Montréal city council adopted its position in favour of a third amendment to the lease with Développement Olymbec inc. for the SPVM’s Centre de formation (training centre) in Anjou. The agglomeration council makes the final decision at a later meeting.
- The proposed amendment would extend the lease of 138,865 square feet at 8491–8525 rue Ernest-Cormier for five years, from November 1, 2033, to October 31, 2038.
- It sets rent for the five-year term at $14,169,828, taxes included, and authorizes up to $1,149,750, taxes included, for additional work by the landlord.
- The work includes seismic upgrades, a generator, improvements to heating, ventilation, air conditioning and electrical systems, changes to a mezzanine, and better security.
- The landlord would provide a $600,000 credit, plus applicable taxes, toward the work.
- The decision also approves recurring budget-base adjustments for two city services in 2033 and 2034.
What it means for you#
- SPVM: If the agglomeration council approves the lease amendment, the SPVM could continue using the site for five more years after its current lease ends. The work is intended to adapt the space to its operational needs.
- People who fund agglomeration services: The decision summary says the agglomeration would pay 100% of the rent and work costs because the SPVM reports to it.
- City services: The real-estate strategy and housing service’s budget base would rise by $431,298 in 2033 and $2,156,490 in 2034. The building management and planning service’s base would rise by $47,153 and $235,763 in those years, respectively. These amounts are net of tax rebates.
Money#
The approved orientation covers a total stated expense of $15,319,578, taxes included.
- Rent: $14,169,828 for five years, taxes included. The decision summary gives the rent after tax rebates as $12,938,941.65.
- Additional work: up to $1,149,750, taxes included; the summary gives the cost after tax rebates as $1,049,875. The landlord’s $600,000 credit is applied to the work.
- The lease was negotiated directly with the landlord, not through a call for tenders.
What is unclear#
- The materials do not set out the full lease terms or explain how the rent was negotiated.
- They do not give a breakdown of the budget adjustments beyond identifying rent and energy costs.
- The decision summary says the work costs increased after plans and additional engineering studies clarified the requirements, but does not provide a comparison of the earlier and revised estimates.
Case for#
- City staff say keeping the training centre at the site is important for continuity of specialized SPVM activities.
- The five-year extension would give the City more time to use its investments in the building, while the landlord’s credit helps offset the work costs.
- The listed work addresses seismic safety and equipment needs, including backup power and building systems.
Case against#
- One concern is that the lease and work were negotiated directly, so the materials do not show how the price compares with competing offers.
- The work scope and cost increased after earlier estimates. The materials explain why, but do not provide an independent cost comparison.
- The commitment covers a five-year term beginning in 2033, while the materials do not set out how the City would assess whether the space remains suitable over that period.