Summary#
Montréal city council unanimously adopted an orientation supporting a five-year lease change with CDM De Montréal inc. for about 20,000 square feet of office space at 80, rue Queen, in Ville-Marie. The change would start July 1, 2026, and cost $4,024,125, taxes included. The agglomeration council makes the final decision at a later meeting.
- The lease would cover the building’s third and fourth floors, replacing the current lease for about 28,598 square feet.
- The City could end the lease on June 30, 2029, if it is not in default and gives the landlord at least 12 months’ written notice.
- The City’s orientation also supports a $356,957 budget transfer for 2026 and a recurring $719,164 budget adjustment for 2027, both net of tax rebates.
What it means for you#
- City staff: The space is intended for the Service des technologies de l’information (IT department). City staff say it is needed while the Service de la gestion et de la planification des immeubles develops and puts in place a plan for administrative office space.
- Residents and taxpayers: The decision does not directly change taxes, fees, or public services. It would fund a City office lease through operating budgets.
Money#
The proposed five-year lease costs $4,024,125, taxes included; no overall cost estimate beyond the amounts in the decision materials is given.
- The lease cost after tax rebates is $3,674,562.50. The 2026 budget transfer is $356,957 net of rebates: $179,906 from local administration contingencies and $177,051 from agglomeration administration contingencies.
- The recurring 2027 budget adjustment is $719,164 net of rebates.
- City staff say the average annual rate, including operating costs, is $35 per square foot, within the stated local market range of $35 to $40.
What is unclear#
- The full draft lease amendment is not included, so its other terms and conditions cannot be checked.
- The materials do not say how the 2028–2031 lease costs will be reflected in later budgets.
Case for#
- City staff say the lease would keep office space available for IT employees while the City plans its administrative-space needs.
- The area would be smaller than under the current lease, and the stated rate is at the bottom of the market range cited by staff.
Case against#
- The lease was negotiated directly with the landlord, not through a call for tenders, so the materials do not show competing offers.
- The City would commit to a five-year term unless it uses the 2029 termination option and meets its notice and no-default conditions.