City Extends Lease at Tour Telus

Summary#

Montréal city council unanimously adopted a position supporting a one-year extension of the City’s lease at Tour Telus, 630 boulevard René-Lévesque Ouest, in Ville-Marie. This is a second amendment to an existing lease, not the final approval: the agglomeration council makes the final decision at a later meeting.

  • The lease would cover 75,796 square feet on floors 1 through 4, from August 1, 2026, for offices of the Service des finances et de l’évaluation foncière (Finance and Property Assessment Department).
  • The landlord, 630 René-Lévesque West Property Co., represented by Management du Groupe Redbourne inc., could end the lease on six months’ written notice if it reaches a deal with a tenant seeking two adjoining floors. The City would receive no compensation.
  • The City negotiated the amendment directly with the landlord; it was not awarded through a call for tenders.

What it means for you#

  • Finance department employees: The lease would provide office space while the City works on a strategy for its administrative spaces. It covers less space than the City’s current lease at the building.
  • Taxpayers: The City would pay for the lease from its operating budget. This council decision is a position in favour of the lease, not the agglomeration council’s final decision.

Money#

The council resolution states a total rent of $3,613,092, taxes included; the detailed financial table gives $3,613,091.86.

  • For 2026, the City would transfer $1,374,681, net of tax rebates, from unforeseen administrative contingency spending to the Service de la stratégie immobilière et de l’habitation. The amount is split between local and agglomeration responsibilities.
  • For 2027, the department’s budget base would be adjusted by $1,924,553, net of tax rebates.

What is unclear#

  • The materials do not give the full terms of the lease amendment.
  • The landlord’s right to terminate could shorten the one-year lease, but the materials do not say whether the City has other protections or relocation arrangements.

Case for#

  • City staff say the lease is needed to house Finance department employees while the City develops and puts in place a plan for its office space.
  • Staff say the annual rate, including operating costs, is $41.46 per square foot, within the stated market range of $39 to $45 for similar buildings in the area.

Case against#

  • The lease was negotiated directly, so the materials do not show how its price compares with bids from other landlords.
  • The landlord could end the lease without paying the City compensation, leaving the City with less certainty about the space.