Montréal to renew 10-year SPVM Metro Unit lease

Summary#

Montréal city council adopted an orientation to approve a 10-year lease for the SPVM’s Métro Unit at 888 boulevard De Maisonneuve Est, in Ville-Marie. The agglomeration council makes the final decision at a later meeting. City staff say the goal is to keep the unit operating from its current location.

  • The lease would cover 12,684 square feet from February 1, 2027, for a total rent of $4,836,594.23, taxes included.
  • The landlord is named in the resolution as 888 De Maisonneuve Fiducie Commerciale, represented by Busac inc.
  • The landlord would give the City an option to renew twice for five years each. Renewals would need City approval, and the rent would be renegotiated at the market rate.
  • The landlord would also provide the City with a $190,260 allowance, plus applicable taxes.

What it means for you#

  • Police services: The SPVM’s Métro Unit has occupied these premises since 2010. City staff say the lease is needed to keep the unit operating there; the council’s orientation is not the final lease approval.
  • Taxpayers: The agglomeration would pay the full lease expense. The decision does not directly change taxes, fees, or individual police services.

Money#

The lease rent is $4,836,594.23, including taxes; the decision summary gives a net cost after tax rebates of $4,419,455.20.

  • The rent is for 10 years. Base rent is fixed for the first three years; operating costs are indexed to the consumer price index, and property taxes are adjusted to actual costs.
  • City staff say no adjustment to the existing budget base is needed; the expense would be paid from the real-estate service’s budget envelope.
  • The landlord’s $190,260 allowance, plus applicable taxes, is listed separately. The materials do not explain how it affects the stated lease cost.

What is unclear#

  • The resolution names the landlord as 888 De Maisonneuve Fiducie Commerciale; the decision summary instead names Place Dupuis Fiducie Commerciale. The resolution governs the decision, but the difference is unexplained.
  • The materials do not say whether the lease was subject to a call for tenders or provide bid information.
  • The terms for calculating the allowance are not given.

Case for#

  • City staff say the current lease expires on January 31, 2027, and moving would disrupt police operations and require finding other premises.
  • Staff say the location is important for the Métro Unit’s operations because Berri station connects three metro lines.
  • Staff cite market rents of $30 to $40 per square foot for similar space in the area.

Case against#

  • The City would commit to a 10-year lease, while some costs would change with inflation or actual property taxes.
  • Renewing could extend the commitment by another 10 years, with rent to be renegotiated at the market rate.
  • The materials do not explain the allowance’s effect on the total cost or report competing bids.