Downtown recovery | Will the scar on the Ville-Marie highway be closed?

Sweep the broom, empty the trash cans, add cycle paths, install sculptures, transform the Latin Quarter into a French-speaking zone open “24 hours a day”…

Valérie Plante’s administration presented this week its strategy to revive downtown Montreal by 2030, which pulls a bit in all directions and recycles some old announcements, but some elements are promising.

One, perhaps even more than all the others: the expansion of the Palais des Congrès. And above all: the redevelopment of the entire surrounding district, undoubtedly one of the most decrepit in the metropolis.

The idea is far from new, but I have been tracking down my sources for two days to get new information, with success.

Here is the summary:

The expansion, as currently envisaged, would be accompanied by the covering of the Ville-Marie highway, a veritable open-air scar that separates downtown from Old Montreal. There is talk of building a hotel on top of this extension, as well as a park, commercial premises and up to 3,000 homes.

It’s major.

According to the most ambitious version of the project, the Ville-Marie highway would be covered over two entire quadrilaterals, up to Place des Montréalaises, opposite city hall. The concrete slab would serve as a base for future developments and would reweave the urban fabric in this very inhospitable area.

The project looks mammoth, and it is. But a new element could help unlock it. According to my information, a huge investor, Ivanhoé Cambridge, the real estate arm of the Caisse de dépôt et placement du Québec, would be open to taking orders if the right conditions are met.

The federal government could also be involved by paying part or all of the concrete slab, I am told, through its infrastructure financing programs. An expense roughly estimated at 120 million.

The project to expand the Palais des Congrès is not new, it must be said.

The former PQ government of Pauline Marois decreed in 2012 a land reserve on a series of lands, just east of the current building, with a view to future expansion. The case cost millions in expropriation fees and even went to court^⁠1.

The file progressed, slowly, painfully, through governments. Then the pandemic hit. And the roof of the Olympic Stadium threatened to collapse.

Result: a huge portion of the funds from the Quebec Infrastructure Plan intended for the metropolis were redirected to the renovation of the Stadium, which leaves almost nothing for the Palais des congrès.

Why is this problematic?

In the last decade, major investments have been made in Toronto, Vancouver and Calgary to attract ever-larger conventions, which escape the Quebec metropolis. Montreal risks finding itself in a “second zone” category, according to the Palais CEO herself.^⁠2.

According to a confidential document that I obtained, Montreal misses around thirty conferences per year due to the narrowness of its premises. Annual losses of nearly 170 million for the local economy.

There is nothing intoxicating or glamorous about holding congresses, we agree, but it is a major economic engine for large cities. The events held at the Palais des congrès de Montréal generated more than $426 million in revenue last year, a record.

With an expansion, the arrival of thousands of additional convention-goers could give new impetus to hoteliers, restaurateurs and merchants in the city center, many of whom are struggling.

The Legault government hesitates to invest in the project^⁠3. But what changes the situation this time is Ivanhoé Cambridge’s interest in the case.

This twist is not trivial.

This arm of the Caisse de dépôt has global assets of 77 billion, and the stated intention to invest more in Quebec. The group is currently working on the conversion of the former Royal Victoria Hospital into student residences, in partnership with the Société québécoise des infrastructures^⁠4.

This new type of business model could be reproduced with the Palais des congrès and its surroundings. Ivanhoé Cambridge could inject significant sums to build the project, and then receive rental income over the years, which would fully correspond to its profile as an institutional investor.

However, a key ingredient is missing to move forward: a clear mandate given by Quebec.

Basically, Ivanhoé Cambridge will not spend millions on feasibility studies unless it is convinced of the seriousness of the matter. Discussions are taking place behind the scenes between the office of Mayor Valérie Plante, that of the minister responsible for the metropolis, Pierre Fitzgibbon, and the people of Ivahnoé Cambridge, but everything is still at a very embryonic stage.

We will see what happens next, but on paper, this project would have three concrete benefits: giving a shock to the Montreal economy, revitalizing a disreputable sector and adding a package of much-needed housing in the current crisis context.

What else is there in Montreal’s downtown recovery strategy?

What was presented Tuesday includes several announcements already made, such as the development of new neighborhoods in the Bridge-Bonaventure sector and around the former Molson brewery. There is talk of “speeding up” these projects.

We also want to add new street furniture to the city center, create public art circuits, focus on the winter character of the metropolis, lark. The billion investments announced by the City largely represent the addition of sums already allocated.

Montreal wants to invest more to improve cleanliness. This will not be a luxury, since the streets and sidewalks are often repulsively dirty, especially in the eastern portion of the city center.

This district, around the Berri-UQAM station and in the Village, will also receive numerous investments in the coming years, with the construction of a complex of 700 housing units on the former Voyageur block and the renovation of Sainte-Catherine Street East. It might get worse before it gets better, but at least we feel some support.

Another point, not insignificant: Montreal wants to give back love to the Latin Quarter, which will strangely be designated “district of the Francophonie”. The City plans to transform it into a “24/7” zone, with businesses open all night. Quite a gamble, considering that this area has become gloomy even in broad daylight.

The question of access to the city center, surrounded by construction sites, seems to have been evacuated from the strategy, which caused the business community to jump. This is understandable: not all suburbanites will come to see a show at the TNM by bike or by metro.

But finally, everyone seems to want to work in the same direction, to restore momentum to the city center. That’s already a given, since no one benefits from seeing the economic heart of Quebec decline.

Shall we talk about it again in 2030?