Summary#
Montréal city council unanimously adopted its position on a contract to deconstruct the former Chinese Hospital at 7500 rue Saint-Denis, in the borough of Villeray–Saint-Michel–Parc-Extension. It set its position in favour of awarding the contract to Excavation René St-Pierre inc.; the agglomeration council makes the final decision at a later meeting. City staff say the goal is to remove a vacant, deteriorated and unsanitary building.
- The proposed contract is for $2,536,867.38, taxes included. The company was the lowest compliant bidder among five bids.
- The city’s position also includes $380,530.11 for contingencies and $253,686.74 for other costs, bringing the total to $3,171,084.23, taxes included.
- The work includes decontamination and deconstruction, sorting and disposing of materials, disconnecting services, and restoring the site.
- The resolution requires an evaluation of the contractor’s performance.
What it means for you#
- Residents: The decision concerns demolition, not the construction or allocation of housing. City staff say the property was acquired for resale to support social and community housing, but this decision does not set out what will happen on the site afterward.
- Public: The proposed work covers hazardous-material removal, including asbestos and lead, as well as demolition and site restoration. The decision does not set a public application or consultation process.
- Taxpayers: City staff say the agglomeration will cover the full cost. The materials do not identify a new tax or fee for residents.
Money#
The proposed total spending is $3,171,084.23, taxes included; city staff say funds are available in the 2026 and 2027 operating budgets.
- The total includes the contract, a 15% contingency budget and a 10% budget for other costs, such as site oversight and laboratory testing.
- The staff summary gives the total after tax rebates as $2,895,933.77, but its annual breakdown adds to $2,895,622.58. The stated net amounts for individual work and contingency lines also differ from the annual breakdown.
- Staff estimate the lowest compliant bid is 44.55% below their cost estimate. They say their estimate used more conservative assumptions and that they checked the contractor’s understanding of the work.
What is unclear#
- The materials do not give a work schedule or contract length.
- They do not explain the next use of the site or how the original housing goal will proceed.
- The final cost could differ from the base contract if contingency or other-cost funds are used. The materials do not state how much will ultimately be needed.
- The stated total after tax rebates does not match the annual breakdown.
Case for#
- City staff say the vacant building has repeated intrusions and is in an advanced state of disrepair and unsanitary condition, in a densely populated area. They argue that prompt deconstruction is in the public interest.
- The lowest compliant bid was substantially below the city’s estimate. Staff say they verified the contractor understood the work and considered its equipment and material-recovery network relevant to its lower price.
Case against#
- The bid is far below the professional estimate, and the work includes hazardous materials. Although staff say they checked the bid, the cost difference leaves uncertainty about whether unexpected work could use the contingency and other-cost budgets.
- The property was acquired for a housing purpose, but this decision deals with demolition and does not explain how or when housing on the site might follow.