City approves three-year nonprofit lease

Summary#

Montréal city council approved a three-year amendment to the City’s lease to Collectif d’animation urbaine L’Autre Montréal. The lease is for administrative use at 3680, rue Jeanne-Mance, in the borough of Le Plateau-Mont-Royal, starting July 1, 2026. City staff say the goal is to keep the nonprofit in space they consider suitable and not needed for municipal purposes.

  • The City will lease the nonprofit 1,318.36 square feet on the building’s third floor for total rent of $31,254.60, excluding taxes.
  • The tenant must arrange and clean the space and make ordinary repairs linked to its use. It is not responsible for repairs to the building structure or its mechanical, electrical, or plumbing systems.
  • Either party may end the lease before it expires by giving the other three months’ written notice.
  • The amendment changes the minimum liability-insurance coverage and the requirements for returning the space, but the decision summary does not give the new terms.

What it means for you#

  • Collectif d’animation urbaine L’Autre Montréal: It can occupy the space for the three-year term, subject to the lease terms. The lease does not guarantee occupancy for all three years, because either party can end it with three months’ written notice.
  • City taxpayers and the public: The decision does not create a new public service or change a general right or rule. The City continues to lease space to this nonprofit at below the market rent estimated by city staff.

Money#

The City will receive $31,254.60 in rent before taxes over the lease term; city staff estimate the below-market rent is worth $67,631.88 as a property subsidy.

  • The tenant also pays taxes. The decision summary estimates them at $1,562.73 in GST and $3,117.65 in QST, for total payments including taxes of $35,934.98.
  • City staff estimate 2026 operating expenses for the space, including energy and routine maintenance, at about $7,400. The materials do not give the costs for the full lease term.

What is unclear#

  • The exact new minimum for liability insurance and the updated requirements for returning the space are not stated.
  • The materials do not explain how the lease’s early-termination option would be used in practice.

Case for#

  • City staff say the space is not needed for municipal purposes and suits the nonprofit’s activities.
  • The lease keeps the space occupied and brings rent to the City; city staff also say it supports a mix of nonprofit organizations in the building.

Case against#

  • One concern is that the City is granting an estimated $67,631.88 in below-market rent, while also facing operating expenses. The full-term operating costs are not provided.
  • The lease can end early with three months’ written notice, so the stated three-year term does not assure either party three years of occupancy.