City signs two-year land lease with Pomerleau

Summary#

Montréal city council approved a two-year lease with Pomerleau inc., starting May 1, 2026. The City will rent the company about 14,144 square feet of land at 505 boulevard De Maisonneuve Est in the Ville-Marie borough for storage and parking without a user fee. City staff say the lease provides nearby space for construction work that benefits the City and the Société de transport de Montréal (STM).

  • The rent is $100,000 for the two-year term, excluding taxes.
  • Either party may end the lease with 90 days’ written notice.
  • Pomerleau must also pay a $588 administration charge, including taxes, as well as operating costs and property taxes.

What it means for you#

  • Pomerleau: The company may use the land for storage and non-fee parking, subject to the lease terms. The lease does not guarantee use for the full two years because either party can end it with 90 days’ written notice.
  • Residents and other land users: The decision does not change a general right or service. City staff say the City does not need this land immediately.
  • The City: It receives rent and assigns the revenue to the operating budget of its Service de la stratégie immobilière.

Money#

The City will receive $100,000 in rent before taxes over the two-year term.

  • The decision summary lists $14,975 in GST and QST, making total rent receipts $114,975 including those taxes.
  • Pomerleau must pay an additional $588 administration charge, including taxes, plus operating costs and property taxes. The materials do not give amounts for those costs.
  • City staff say the rent is $50,000 a year before taxes. They also say the average rental rate for the term is $3.54 per square foot.

What is unclear#

  • The lease’s full terms are not included, so other conditions on use of the land are not available here.
  • The materials do not explain how the rent was set or whether other sites or tenants were considered.
  • The amount of operating costs and property taxes Pomerleau will pay is not stated.

Case for#

  • City staff say the City does not need the land immediately and that Pomerleau needs nearby space for work serving the City and STM.
  • Staff say that without this lease, Pomerleau would have to rent land at least half a kilometre from the work site.
  • The City receives rent for use of its land. Staff say a charge was acceptable because the work benefits both the City and STM, whereas the City generally allows free use when a contractor’s work is for the City alone.

Case against#

  • The materials do not explain how the rent was set or whether the City considered other options.
  • Pomerleau’s total costs are not clear because operating costs and property taxes are additional to the stated rent, and their amounts are not given.