For the third time in less than a year, the City of Montreal will pay more than twice the property assessment of a building in order to acquire it and install affordable housing there.
The Plante administration announced Thursday the purchase of the former Gordon Gardens, in Verdun. The 99-room residence closed its doors last year and has been vacant ever since.
“We know that the pressure is intense in Verdun,” said Mayor Valérie Plante, in front of Verdun Borough Hall. “What we try to do is protect buildings whenever we have the opportunity. »
Montreal acquired the former Gordon Gardens – located on the street of the same name – thanks to its right of first refusal. She replaced a potential buyer who had just made an offer on the building.
Montreal announced that it was spending 8.1 million for the acquisition of the building. According to its own land roll, it is rather worth 3.9 million in total. It is on this basis that it is taxed.
This is the third time in a few months that Montreal has had to break the bank to buy buildings at a price that exceeds twice their property assessment. In November, the Plante administration announced the purchase of land on rue Jarry Est for 4.75 million (municipal assessment 1.3 million), as well as a building in poor condition on Bernard Est for 4 million ( municipal assessment 1.6 million). Each time to make affordable housing there.
As on these two occasions, the head of housing for Valérie Plante, Benoit Dorais, warned against comparisons with the land roll. He indicated that an assessment of the market value of Jardins Gordon showed that the City of Montreal was getting a good deal.
“That’s really interesting,” said Mr. Dorais, adding that the value entered on the current roll took into account the reality at 1er July 2021. “Right now we are in 2023 and for housing, in Verdun, at a time that is different in the economic and real estate movement. The market valuation is really above 8.1 million. »