Summary#
Montréal city council unanimously approved the city’s position on extending its lease to 3/4 oz inc. The extension would run for three years from August 1, 2026, for a 2,190-square-foot food-processing space at 7335 rue du Mile End, in Villeray–Saint-Michel–Parc-Extension. The agglomeration council makes the final decision at a later meeting.
- The proposed rent is $87,361.08, excluding taxes, for the three-year term.
- The rent includes operating costs but excludes property taxes. 3/4 oz inc. pays its own energy and electricity bills directly to suppliers.
- 3/4 oz inc. must arrange and clean its space and make routine tenant repairs. It is not responsible for structural work or repairs to mechanical, electrical or plumbing systems.
- The lease adds a termination option with six months’ written notice. It also changes the terms for returning the space.
What it means for you#
- 3/4 oz inc.: The company could continue food-processing activities in the space under the extended lease. The terms also assign it cleaning and certain repair responsibilities.
- The city and taxpayers: The city would receive rent while it holds the property. City staff say the lease is intended to reduce the city’s holding costs until a housing project is developed.
- Housing: City staff say the lease is temporary, pending a housing project for the property. The decision does not set a date for that project.
Money#
The lease would bring in $87,361.08 in rent, excluding taxes; the materials also estimate $2,700 in operating expenses for 2026.
- The rent plus the listed GST and QST totals $100,443.40, including taxes. The rent revenue is assigned to the agglomeration budget for the Service de la stratégie immobilière et de l’habitation.
- Property taxes are excluded from the rent. The materials do not give an estimate of the city’s total costs or net revenue over the lease term.
What is unclear#
- The lease allows termination with six months’ written notice, but the materials do not say who may use that option or give its full conditions.
- The city’s estimated rental value is $11.25–$12.25 per square foot on a net basis; the lease’s average rate is $13.30 per square foot and includes operating costs. The materials do not explain how to compare these figures.
- The timing and details of the planned housing project are not provided.
Case for#
- City staff say the lease would bring in revenue, reduce some property holding costs and maintain a presence in the building while the city plans a housing project.
- The tenant pays its own energy and electricity bills, and the lease includes an early-termination option.
Case against#
- The property was acquired for social housing, but the lease would continue another three years. The materials do not say when housing development might begin.
- The rent figures are not directly comparable: the city’s estimate is net, while the lease rate includes operating costs. The materials do not explain whether the agreed rent represents good value on a like-for-like basis.