The densification and reduction of the tax burden on businesses are part of the necessary ingredients for the development and vitality of downtown Montreal over the next eight years, believes the Board of Trade of Metropolitan Montreal (CCMM).
In a brief submitted as part of the consultations conducted by the City of Montreal on its 2022-2030 strategy for the city centerthe chamber of commerce defines five orientations that municipal authorities should favour.
Montreal should not only tend towards a reduction in the tax burden of businesses, but also of individuals, believes the CCMM. The municipal administration has already made efforts to reduce the gap between residential and non-residential taxes in recent years, but more needs to be done, believes the CCMM. “Montreal is the Canadian city” with “the highest tax rate” for “commercial real estate, at $36.24 per $1,000 property assessment,” the Chamber of Commerce points out in its brief. “To promote the competitiveness of businesses in the metropolis and the settlement of new residents, the City must […] develop an advantageous tax policy,” she points out.
The CCMM’s Senior Director of Content Strategies, Economic Affairs and Downtown Revitalization, Jessica Bouchard, recognizes that the municipal administration is highly dependent on property revenue from the downtown core. “But we must reduce this burden as much as possible in a 2030 trajectory,” she argues.
Montreal must also focus on its international appeal, says the CCMM. The metropolis is home to 67 headquarters of international organizations, including four from the UN, and will host others, such as the International Sustainability Standards Board. It can also count on seven major university and higher education establishments, in addition to receiving millions of visitors each year.
The Chamber of Commerce of Metropolitan Montreal says it is not afraid of the departure of head offices or organizations, but it insists that the City focus on the distinctive character of the downtown area and facilitate the arrival of new organizations with international influence by s focusing on the quality of urban development and zoning.
Affordability and density
The effects of the COVID-19 pandemic are still being felt. With a vacancy rate of 8.2% in 2021, Class A office buildings are doing better than Class B and Class C, which are registering rates of 11.5% and 13.4% respectively .
For the buildings of the last categories, Montreal should consider a greater mix of functions, believes the CCMM. “There are certain places where it may be possible to switch to residential. We also propose to attract young SMEs to the city center, and to pool and pilot projects,” explains Jessica Bouchard.
In its brief, the CCMM also mentions the affordability of housing. While welcoming projects aimed at diversity, such as Demain Montréal, which should see the erection of 250 housing units on the site of the former municipal road yard of the Cité du multimedia, the Chamber of Commerce nevertheless judges that the City should favor suburban neighborhoods for affordable housing projects. “The city center of a growing international metropolis is also characterized by a higher cost of living than more outlying areas”, it is pointed out.
The CCMM advocates greening, protection of heritage and views towards Mount Royal, as well as quality urban development. However, it pleads in favor of greater density and the construction of tall buildings in order to free up spaces on the ground which will be used to green the public space. “Vertical real estate development bears witness to technical progress and reinforces the image of a bold, dynamic and intelligent downtown,” also argues the CCMM.
Jessica Bouchard, however, assures that the business community does not question the urban planning rules which prohibit the height of Montreal buildings exceeding that of the mountain, an idea raised by the candidate for mayor of Montreal Denis Coderre, campaigning last fall.
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