At least the Caisse thinks it has value. The Laval property has not sold as of yet. This tax may have caused a pause for some buyers.
The Quebec government and the Caisse de dpt et placement du Qubec “have erred terribly” in charging a royalty to developers who build near stations on Montreal’s new REM automated, light rapid-transit line, says Jonathan Wener, founder and chairman of Montreal-based developer Canderel.
To finance a portion of the Rseau express mtropolitain’s construction, Caisse subsidiary CDPQ Infra has been given the right to charge developers a royalty fee of $10 per square foot for new building permits granted within one kilometre of the 26 REM stations. (The Caisse is Quebec’s institutional fund manager.)
“I have to say I’m rebellious about how the government agreed with the Caisse about the taxation. I think it doesn’t bode well for affordability around a REM station (for residential developments),” he said.
By contrast, he noted, Montreal’s Metro system was fully paid for by taxpayers. “I don’t understand the distinction between a REM station and a Metro station. It’s mass transit,” he said.