Summary#
Montréal city council adopted a position supporting a second change to the city’s office lease with Gallion Équité S.E.C. at 1611 boulevard Crémazie Est in Ahuntsic-Cartierville. The change would delay the start of the lease for the 8th and 9th floors by three months, to November 1, 2026, and extend the lease for the 8th, 9th and 10th floors by three months, to May 31, 2036. City staff say the change is needed because more work is required before the new space can be occupied. The agglomeration council makes the final decision at a later meeting.
- The city council’s position supports an additional rent expense of $398,416.69, taxes included.
- It also supports authorizing $344,704, taxes included, for tenant improvements and contingencies, payable to the landlord.
- The landlord had agreed to provide $438,500 before taxes toward the work; the revised estimated work cost is $738,308 before taxes.
What it means for you#
- City departments: The Service de l’approvisionnement and Service des infrastructures du réseau routier would start using the 8th and 9th floors three months later than planned. The Direction de l’évaluation foncière uses the 10th floor.
- City and agglomeration budgets: The lease would run three months longer for all three floors. This decision does not directly change residents’ rights, fees, or services.
Money#
The decision identifies added lease and renovation spending; it does not provide one consistent total across all its figures.
- The resolution lists $398,416.69 for rent and $344,704 for work, both taxes included. The detailed work estimate is $344,704.25, while the official title gives a total of $743,120.94. The resolution’s two amounts add to $743,120.69, a 25-cent difference.
- City staff estimate the delayed start will save $235,939.72 net of tax rebates in 2026 by avoiding rent on unoccupied space. They say the added rent will be funded from the housing and real-estate strategy service’s budget, offset by rent no longer paid for space at 255 Crémazie Est. Renovation costs are assigned to the real-estate management service’s capital program.
What is unclear#
- The available material does not give the agglomeration council’s final decision.
- The amounts differ by 25 cents between the resolution’s listed components and the total in the official title; the material does not explain the difference.
Case for#
- City staff say the 8th and 9th floors cannot be ready on the planned date because the required work is greater than first estimated.
- Delaying rent for those floors avoids paying for space the city cannot yet occupy, according to staff.
Case against#
- The city would extend the lease on all three floors, including the 10th floor, to obtain the three-month delay for the other floors.
- The revised work estimate exceeds the landlord’s allowance, leaving additional costs for the city.