Montréal Economic Powerhouse | Spring 2021 Edition

VILLES D’AVENIR COLLECTION VOLUME 11 | ISSUE 2

MONTRÉAL’S POST-COVID RELAUNCH

PP 41614528

We’re building for the future.

Real estate projects that strengthen our economy and enrich our communities: that’s what we’re building.

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WORD FROM THE EDITOR-IN-CHIEF

PUBLISHER Jacques Boisvert EDITOR-IN-CHIEF René Vézina EDITORIALS Nathalie Savaria, Pierre Théroux and René Vézina

PRODUCTION Supervision : Edith Lajoie Graphic design and layout : Carole Bordeleau from Carbodesign PHOTOGRAPHS Denis Bernier and Stéphan Poulin COVER PAGE PHOTO © Stéphan Poulin ADVERTISING Mario Leblanc Account Manager

MONTRÉAL IN RECOVERY MODE

JBC MÉDIA BY DENIS BERNIER

TRANSLATION, REVISION AND PROOF-READING Neil Kroetsch

René Vézina

There is a glimpse of light at the end of the long pandemic tunnel.

Montréal 450 670-7770 ADMINISTRATION Edith Lajoie Director of Operations and customer experience ACCOUNTING Catherine Faucher Johanne Viens Philippe Bérubé CPA PUBLICATIONS POST Agreement no PP 41614528 RETURN ADDRESS 70 De La Barre Street, suite 120 Longueuil QC J4K 5J3 SUBSCRIPTIONS Fatima Reynel Gracia abonnement@jbcmedia.ca www.jbcmedia.ca Legal deposits — Library and Archives Canada and Bibliothèque et Archives nationales du Québec, 2009 All requests for copies must be made in writing to the publisher. If your request is accepted, it must clearly indicate the source, as follows: From Villes d’avenir, Montréal Economic Powerhouse Edition.

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Please note that this magazine appears seasonally. Publication dates subject to change.

ISSN 2293-8362

Villes d’avenir, Montréal Economic Powerhouse Edition is published by JBC Média inc.

President: Jacques Boisvert 70 De La Barre Street, suite 120 Longueuil QC J4K 5J3 Telephone: 450 670-7770 Toll free: 1 866 446-3185 Fax: 450 670-7771

That is a reasonable description of the public health and economic situation in Montréal right now, in spring 2021. Health and the economy have always been closely linked, and the events of the last few months have been a brutal reminder of that connection. The current mood is cause for delight, and the city should soon see a gradual improvement and economic upturn.

At any rate, Mayor Valérie Plante shares that belief and states why in an interview with our journalist. And she is not alone. The CEO of the Chamber of Commerce of Metropolitan Montréal, Michel Leblanc, also foresees a return to normal for the downtown core, even if certain changes caused by the pandemic will not disappear overnight. Others are just as confident, to the point of predicting the return of high heels soon strolling along city sidewalks. That would be nice... Nice to get all dressed up and finally have someplace to go!

Meanwhile life goes on and pressing matters that define or will redefine Montréal are featured in this issue, such as traffic flow and mass transit fluidity, as well as the circular economy and the greening of the city.

Can we finally hope for the best? Let’s keep our fingers crossed. And if I may say so, one swallow doesn’t necessarily indicate the arrival of spring, but a vaccinated swallow makes it much more likely!

Enjoy your reading, and I look forward to seeing you in the fall for our next issue.

info@jbcmedia.ca

René Vézina www.jbcmedia.ca

Editor-in-chef

We recognize the financial support from the Government of Canada

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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CONTENT : : SPRING 2021 EDITION

3 WORD FROM THE EDITOR-IN-CHIEF 5 A MESSAGE FROM THE MAYOR OF MONTRÉAL 7 A MESSAGE FROM THE TRANSPORTATION MINISTER AND MINISTER RESPONSIBLE FOR THE METROPOLIS AND GREATER MONTRÉAL

9

DOWNTOWN MONTRÉAL

STÉPHAN POULIN

24 INTERVIEW – Valérie Plante Montréal’s Assets will help stimulate its Recovery 27 INDUSTRIAL WASTELAND Rejuvenating Industrial Wasteland in Montréal 30 CIRCULAR ECONOMY The Circular Economy, or the right way to be Going in Circles 34 AGRIBUSINESS Montréal, Home of Rooftop Farms and Vineyards!

SPECIAL REPORT ECONOMIC DEVELOPMENT 37 A RESILIENT, GREEN, INCLUSIVE CITY 40 TOWARD A MORE CIRCULAR ECONOMY 4

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

A MESSAGE FROM THE MAYOR OF MONTRÉAL

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t has been more than a year since the pandemic hit Montréal, and the world, with full force. Since the beginning of the crisis the City of Montréal has spared no effort to support its citizens and businesses, and has demonstrated strong leadership in preparing for the recovery and for re-booting its economy.

As early as March 2020 we took action to ensure compliance with health regulations, while also supporting local businesses. We adopted a plan to reduce municipal spending, to make taxation work for the economy and to give people some breathing room by deferring tax bills. We have also been very proactive in supporting the economy, with some $260M invested in our emergency measures stimulus plan. For example, $120M in direct support was allocated to more than 3000 businesses via the PME MTL network.

CITY OF MONTRÉAL

The pandemic had a negative impact on the downtown area, and also on vital economic sectors such as retail, restaurants, aerospace, tourism and cultural and creative industries. These difficult times have taken a heavy toll, and have revealed the importance of building and maintaining a strong downtown core.

In conjunction with the Québec government, we established a $25M investment fund to revitalize the downtown area and maximize its ability to attract visitors once business returns to normal, so that visits to downtown become a positive experience. There is a broad consensus among all stakeholders that this is an important first step in rebooting the economic and cultural heart of the city.

We are also drafting an ambitious plan for the rest of the decade. It will present details of a recovery process based on a vision of the future that will serve as a guide, with an emphasis on greater cohesion and consistency in municipal actions to be carried out over the next few years.

I am convinced that as we emerge from this crisis we will succeed in building a city that is even stronger and more resilient. And to do this we must work closely with the entire economic development ecosystem, all of us pursuing an inspiring vision and common goals as we build resilient and attractive places to live and work. I would like to take this opportunity to point out that, since the beginning of the crisis, the engagement and commitment of key players in Montréal’s economic and social sectors have been exceptional.

Now more than ever, we are doing everything we can to successfully implement a green and inclusive recovery effort that will benefit all Montrealers, now and in the future.

Valérie Plante Mayor of Montréal

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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Setting big ideas in motion Here’s an overview of major STM projects in 2021 Blue line extension preparatory work

FABRE Roof renovations

D’IBERVILLE

VIAU

Major renovations and elevator installation

Major renovations, elevator installation and underground workshop expansion

ACADIE Roof and outer envelope renovations

CÔTE-VERTU

OUTREMONT

Track switch installation

Major renovations and elevator installation

LAURIER

PIE-IX

North entrance building inner and outer envelope renovations

Major renovations, elevator installation and membrane replacement

PRÉFONTAINE

MONT-ROYAL ÉDOUARDMONTPETIT Elevator installation and accessibility work to connect to REM station

Elevator installation and entrance building construction

Elevator installation, entrance building and other entrance renovations

JEAN-DRAPEAU Roof renovations

PLACE-DES-ARTS Elevator installation and entrance building renovations

McGILL New entrance building construction, renovations on three entrance buildings, elevator installation and membrane replacement

VILLA-MARIA

PEEL

Elevator installation

Staircase structural slab renovations

VENDÔME

ATWATER

New entrance building construction and elevator installation

Membrane replacement and elevator installation

PLACE-SAINT-HENRI Elevator installation and construction of two entrance buildings

ANGRIGNON Elevator installation Future accessible station

stm.info/en/works

LIONEL-GROULX Membrane replacement, new power station construction and staircase renovations

JOLICŒUR Elevator installation

OTHER MÉTRO PROJECTS: • Construction of the Côte-Vertu garage, the Northwest Attachment Centre and six mechanical ventilation stations • Addition of natural ventilation shafts in five stations • Renovations on three auxiliary structures • Refurbishment or addition of artwork in ten stations

BUS NETWORK PROJECTS: • • • •

Integrated Pie-IX BRT project Bellechasse bus garage construction Complexe Crémazie reconstruction Expansion of three bus garages

A MESSAGE FROM THE TRANSPORTATION MINISTER AND MINISTER RESPONSIBLE FOR THE METROPOLIS AND GREATER MONTRÉAL

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he exceptional situation we have been experiencing since spring 2020 has turned everyone’s daily lives upside down. This crisis has had a major impact on our city. The vitality of the downtown core has been hit hard, our tourism and cultural industries have been damaged, and important sectors such as aerospace and retail are struggling to redefine themselves. While Montréal is the epicentre of all these upheavals, it is also the cornerstone for an eventual comeback, and we must all work together towards that recovery.

To achieve that goal, the Government of Québec is working to ensure that the specific needs of the city are covered by implementing measures that are adapted to its scale and distinctive characteristics. That is why we are working in close collaboration with individuals and sectors actively involved in Montréal’s economic development.

Government support helps bring to fruition the action plans of the city and its development partners. We seek to promote and strengthen Montréal’s status as a strong, prosperous and diverse metropolis. By means of emergency aid to businesses and financial support for municipalities and public transit agencies, as well as stimulus measures for culture, tourism and the green economy, we are supporting the success of our entrepreneurs, merchants and developers.

Montréal has what it takes to compete with other big cities around the world.

Major infrastructure work is currently underway. These include rapid transit projects, the extension of the subway system’s Blue line, construction of reserved bus lanes on Pie IX Boulevard, the creation of the REM light rail network and plans to establish on busy highways a network of lanes reserved for public transit – all of them major investments that will help improve traffic flow and urban mobility. They will transform Montréal into a model of sustainable transport and will raise the profile of the surrounding region.

The development of Québec’s biggest city, its attractiveness and its influence, depends on our ambitions for it and the means that all of us can employ to achieve that goal.

The challenges of the pandemic are many and the battle will continue to be fought on many fronts. But all of this is also an opportunity for a sustainable, equitable transformation of our city, and for an even better future.

Chantal Rouleau Transportation Minister and Minister responsible for the Metropolis and Greater Montréal

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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DOWNTOWN MONTRÉAL

DOWNTOWN MONTRÉAL WILL BOUNCE BACK, SAYS MICHEL LEBLANC

BY RENÉ VÉZINA, JOURNALIST SPECIALIZING IN ECONOMICS

"We must prevent downtown Montréal from going under. There is no reason for that to happen if we know how to respond and, above all, if we realize what is at stake," said Michel Leblanc, CEO of the Chamber of Commerce of Metropolitan Montréal.

JBC MÉDIA BY DENIS BERNIER

"

I understand the need for teleworking during the pandemic," he added, "and I realize that employers might be tempted to prolong that approach once things return more or less to normal. Not having to rent as much space as you used to can reduce costs.

But there is a risk in not being physically present at the heart of the action."

He thinks that being downtown will regain its appeal, and that interest in human contact will eventually prevail. "When a lawyer or an accountant, or any other professional concludes that he or she has lost a contract to a competitor because the latter gained the client’s trust by meeting him in person, then those professionals will want to make sure that they regain that visibility."

Like before, as though nothing had happened?

"No," said Mr. Leblanc. "There are bound to be adjustments. But I can’t imagine a decision to permanently disengage from the downtown area and all the business opportunities it can offer.

That’s unthinkable."

And given that nature abhors a vacuum, those who leave allow others to get in on the action. "I can well

imagine ambitious young professionals wanting to take their place and, at the same time, re-engage with the city centre." But will these newcomers go downtown every day? Will lunches be as popular, and as long as they once were? On the other hand, will restaurants be able to get back on track when expense accounts are likely to be tightened?

All that remains to be seen.

At the same time, ongoing infrastructure projects such as the light rail rapid transit network (REM) might have a chilling effect on commuters’ eagerness to go downtown, at least in the coming months or years. "A distinction must be made between the short and the long term, as is the case with the pandemic," added Michel Leblanc.

"Returning to normal will be a gradual process. I hope that all the construction work will be well coordinated."

The challenge, however, is to return to the prepandemic buzz. If more people work in offices and are back in the downtown area, they bring life to the shops and restaurants, which in turn makes the downtown area more attractive, making the wheel of fortune go round.

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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DOWNTOWN MONTRÉAL

MONTRÉAL WILL RISE AGAIN

BY RENÉ VÉZINA, JOURNALIST SPECIALIZING IN ECONOMICS

Department stores have always been attracted to downtown areas. One of the most popular concepts of recent years, Eataly, will soon be setting up shop in Montréal. Imagine a big, fancy Italian supermarket lined with a vibrant array of counters and food islands. Eataly became a big hit in Manhattan, and then later in Toronto. Despite the pandemic, it is set to soon take Montréal by storm.

ISTOCK BY ANTONIOGUILLEM

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his is but one example suggesting that the city is about to emerge from the long paralysis caused by Covid-19. All signs point in that direction. Barring an unforeseen catastrophe, current indications are that life will gradually resume after months of lockdown.

It’s true that we have a long way to go, and nothing is yet certain. The slowdown of activity in the city was no illusion, as statistics confirm. Glen Castanheira, executive director of the Downtown Business Development Corporation (previously the Société de développement commercial Montréal Centreville), collated data supplied by its 5000 member businesses. "Over the past year we lost 11 million tourists, 300,000 office workers and 120,000 university students, not to mention the college students no longer studying here as well. On average we lost 500,000 commuters per day, people travelling from home to downtown and back.

Imagine the impact."

But other statistics are much more encouraging, and he is pleased to present them. "Smart sensors have been installed on St. Catherine Street to measure foot traffic. In February when the pandemic was

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

GLEN CASTANHEIRA Executive director Downtown Business Development Corporation

The city has two state-of-the-art superhospitals, and is a renowned force in the cultural and commercial sectors.

Those attractive aspects will continue to draw tourists and investors."

While there is general agreement that downtown offices will be less busy, even after a return to normalcy, how to reconcile the sustainability of teleworking with the revival of the downtown core?

Jean-Marc Fournier acknowledges that dilemma. "I imagine a hybrid model where many people will be allowed to manage their own work schedules. That will require what I call extraordinary experiences, creating many options that attract people to the city centre, from gourmet restaurants to shows, the Old Port, sports events at the Bell Centre, etc. How many cities are able to offer so much in such a small area?"

Referring to a city that has suffered terribly, he added: "It’s not the same, of course, but New York City recovered after the tragic events of September 11, 2001. Great cities have a soul that refuses to die."

still quite intense, we tallied 1.4 million pedestrians walking on the street between Guy and St. Urbain.

The sidewalks were full, something I noticed myself, because I live and work in the downtown core. When people say that downtown Montréal is deserted, it makes the hair on my arms stand up. It’s simply not true."

AN ATTRACTIVE CITY NONETHELESS "Montréal remains a unique city, and an attractive destination," he added. He was already convinced of this, and his new position had led him to reinforce his positive take on the city.

Jean-Marc Fournier is the director of the Urban Development Institute of Québec (IDU), an important voice for the commercial real estate industry.

Prior to holding that position he was an influential minister in the Charest provincial government, notably serving as Minister of Municipal Affairs.

It is thus no accident that he finds himself now head of the IDU. "Let’s look at the big picture," he said. "Montréal is the second largest university city in North America after Boston, and students will be coming back.

JBC MÉDIA BY DENIS BERNIER

JEAN-MARC FOURNIER Director Urban Development Institute of Québec

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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DOWNTOWN MONTRÉAL

LONG-TIME RESIDENTS AND NEW ARRIVALS It’s important to offer a distinctive experience.

Manon Larose, senior vice-president, Retail, with the property consultancy firm JLL, believes that Montréal has what it takes. She knows of what she speaks, as she has been in the business for three decades, and has worked for Cadillac Fairview and Westcliff and Cominar. In her opinion, a downtown core is meant to be vibrant and Montréal has that in spades. For her it is as much a matter of perception, of heart, as of concrete realities.

As for the upcoming arrival of Eataly, "look at what happened with the opening of Uniqlo at the Eaton Centre. Even in the midst of a pandemic, people were lining up, eager to get into the store." Uniqlo is a Japanese fashion retail chain that is extremely popular all over the world. "If you want to go to the big Apple store on St. Catherine Street, you also have to wait in line. Despite current restrictions on the number of people allowed in the store, the fact remains that people haven’t stopped going downtown, in defiance of all kinds of obstacles," she added.

CREW M

MANON LAROSE Senior vice-president, Retail JLL

And there were indeed obstacles even before the pandemic, with the street largely gutted due to construction work. "It was a necessary evil; it was due for a major makeover." She has a lot of sympathy for hard-hit retailers. "That’s why I want government agencies to continue to give them a helping hand through their xx various programs, and also perhaps tax relief to help them get back on their feet."

Even downtown landmarks are getting ready for an overhaul, starting with the iconic Hudson Bay Company store. Built in the 1890s, it was first home to Morgan’s, a big department store. The ambitious HBC redevelop­ ment project "is sending a strong message,"notes Glen Castanheira. "The company had previously announced the closure of its flagship stores in Toronto and Vancouver.

But what is it doing now in Montréal? Investing!"

Morgan’s store (now La Baie) in 1936

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ARCHIVES CITY OF MONTRÉAL VM94-Z-66-1 (1936)

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

There are skeptics, to be sure, but Glen Castanheira takes a positive view. "When Henry Morgan opened his store in the 19th century, many people laughed at him. But he was right. And I hope it will be the same this time."

A vibrant summer ahead downtown Original urban developments, cultural activities, offices transformed and occupied, outdoor work spaces, free parking...

All the pieces are in place to revitalize our downtown, the economic and cultural heartbeat of the city.

With its partners, Montréal will deploy a full slate of projects with one overriding objective: To bring downtown to life and make it accessible, attractive and dynamic.

Learn more about the initiatives planned at montreal.ca

DOWNTOWN MONTRÉAL

The Phillips Square area opposite the store has become one of the trendiest areas in the downtown core. For example, the techno firm PCG plans to move into premises there for its 750 employees, a sign that "Montréal’s reputation continues to grow," said Mr. Castanheira. In addition, the Brivia Group has commenced work on the tallest residential tower in Montréal, a 51-storey building!

"Not to mention professional hockey coming back to the downtown area with its 21,000 spectators! It’s only a matter of time before we go big again, as long as people are careful, of course."

THE APPEAL OF TELEWORKING AND THE SUBURBS Although there are fewer commuters in an era of teleworking during a pandemic, there is no guarantee that they will return to Montréal en masse once the situation returns to normal.

JLR LAND TITLE SOLUTIONS

JOANIE FONTAINE Economist JLR Land Title Solutions

"I think that the remote working honeymoon is over," said Manon Larose of JLL. Like many others, she realizes that habits have changed and that organizations will have to provide flexible schedules for employees working from home, far removed from the downtown core. "Look at what’s happening in Japan, for example.

People are coming back downtown, attracted to all that the city centre has to offer, such as restaurants and entertainment, and they’re eager to dress up after months of lockdown. Soon we’ll be seeing high heels again on downtown streets!"

Joanie Fontaine, an economist at JLR Land Title Solutions, thinks that the attraction of the suburbs will persist. "The distance between work and the office will matter less.

The proof is in the pudding. The premium for proximity to work and downtown has been permanently reduced. At the same time, ever-rising prices for housing are certainly not helping."

Hence the importance, she notes, of rethinking what the downtown area has to offer besides new stores. "Why not create a milieu that is more family-friendly? There are very few elementary and high schools to be found downtown."

She envisions a hybrid work model that combines working at home and also at the office. It is an approach being pursued by big companies like Facebook.

ISTOCK BY NICOLASMCCOMBER

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

you ask for? It requires a willingness to help with the economic recovery, however."

But like Manon Larose, she thinks that downtown will remain popular with workers, if only to see colleagues in person. That will affect property ownership choices. "Having a pied-à-terre in the city centre without sacrificing your home in the suburbs?

It’s something we’re seeing quite often now," said Joanie Fontaine.

He mentioned a precedent that remains exemplary in terms of recovery. "In New York City, some thought that the tragedy of September 11, 2001 would sound the death knell for part of Manhattan.

But the city rose up from the ashes. The shock we are experiencing is not of the same magnitude, far from it. But if they managed a successful recovery, why not us too?"

As an economist she sees new ways of working, including more and more shared spaces as people come and go. "The concept of pooling office space and equipment is a new imperative." What’s more, large landlords are already finding themselves with space to re-let. Prices will probably fall, at least in the short term. New players, even smaller ones, might decide to take advantage of the opportunity to get a prestigious address downtown.

Glen Castanheira also believes the city will adapt and prosper. "I’m a child of Bill 101, the son of Portuguese immigrants, and I love this city. We have much to be proud of."

The next few months will show whether his dreams and those of the major players downtown will come true. But as long as the stars continue to align, there is hope.

"What’s on offer is second to none," notes Jean-Marc Fournier. "Between the Bell Centre and Old Montréal and all that lies between the two, what more can

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DOWNTOWN MONTRÉAL

AFTER THE SLUMP, PALAIS DES CONGRÈS ENVISIONS A BRIGHT FUTURE

BY RENÉ VÉZINA, JOURNALIST SPECIALIZING IN ECONOMICS

Josée Noiseux became the new president of the board of directors of the Palais des congrès de Montréal in March of this year at a time when, like so many other establishments, it must catch its breath after a trying year. The pandemic has left its stamp on everyone.

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BETTER DAYS AHEAD he numbers provided by management speak for themselves. For the period since the beginning of the pandemic in March 2020, 41 conventions were cancelled and more than one million expected attendees stayed home, causing a $278 million loss in local economic benefits and depriving the Montréal hotel industry of at least 193,000 overnight stays. Yet the new board president looks to the future with confidence. "2023 is shaping up to becoming a record year with lots of reservations already booked. The future is looking bright!" she said.

Does that mean that Montréal can hope to maintain its position as one of North America’s leading convention cities? "For the past three years, in fact, Montréal has been the top host city in North and South America for international conventions! And there is nothing to suggest that that is going to change." She added that the Palais serves as an important showcase and ambassador for the city.

And indeed, Montréal has more than one ace up its sleeve. Compared to other cities, the cost of living remains affordable, the city is safe and its hotels and restaurants abundant and of high quality, not

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

MONIC RICHARD PHOTOGRAPHE

JOSÉE NOISEUX President of the board of directors Palais des congrès de Montréal

ISTOCK BY RIXIPIX

to mention its international character and impressive quality of life. Let’s hope that the Covid-19 crisis will soon be a thing of the past.

The Palais was obliged, of course, to put all conven­ tions on hold. "Even so, 133 face-to-face events took place over the past 12 months," noted Ms. Noiseux.

OPERATIONAL DESPITE CONSTRAINTS Josée Noiseux is no stranger to running large organizations. A partner in the law firm Norton Rose for 25 years, she was Chair of the board of directors of the Montréal Heart Institute Foundation and also of New Cities, an international organization based in Montréal that focuses on shaping a better urban future by developing smart cities. She is the first woman president of the Palais des congrès board, appointed at a time when it must regain its role as a driving force in the Montréal economy.

Life will eventually return to normal, and then the Palais des congrès will again face an old bugbear.

It is cramped for space, which has meant lost opportunities. "We lose out on some 20 possible conventions every year," she said.

"To evoke an all too familiar image, don’t think that we were on life support," she said. "Yes, the Palais laid off several employees, but we’re busy preparing for what lies ahead. To give you an idea, we’ve set up seven content production studios and continue to present our OASIS Immersion exhibitions featuring immersive galleries and dazzling lighting installations."

There has been talk of expanding for years. The dossier is moving forward and land has been purchased. "But we still have to finalize the financing with the various levels of government and, for the time being, it is a question of timing, given all the other pressing priorities of the moment."

In the meantime, although it has had to mute its role as an economic engine for Montréal, the Palais has stepped up to the plate to help protect its citizens.

This spring it served as one of the main Covid-19 vaccination centres in Greater Montréal. For the time being, although it does not contribute to the economic health of the city as much as it would like, it is making a direct contribution to the health its residents.

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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DOWNTOWN MONTRÉAL

FINGERS CROSSED FOR EFFICIENT MASS TRANSIT

BY RENÉ VÉZINA, JOURNALIST SPECIALIZING IN ECONOMICS

In the past there have been failures in the planning of major infrastructure projects, but achieving better traffic flow is a problem that can’t be ignored. However, the work in progress must be well planned in order to gain the support of Montrealers.

I

t takes a lot of faith to go downtown, which is crowded despite the restrictions caused by the pandemic. Authorities have said that there will soon be improved traffic flow thanks to a vastly improved public transit system, and that getting around the city will be a more pleasurable experience. But in the meantime citizens have to deal with huge construction sites, each new one more discouraging and disruptive than the last.

McGill College Avenue is closed to vehicle traffic due to work on the new REM light rail network, not to mention all the other upheavals caused by the project. Pie IX Boulevard is not much better due to the disruptions involved establishing reserved bus lanes. For other reasons, St. Catherine Street near the Gay Village has been completely gutted.

And the proliferation of orange cones scattered throughout the city is enough to drive motorists and truckers stark raving mad.

INCONVENIENCE MORE OR LESS INEVITABLE "At the moment, it’s as though we’re right in the worst of it," said Michel Leblanc, the CEO of the Chamber of Commerce of Metropolitan Montréal, in response to feedback from the organization’s 8000 members. "But it’s a paradox we must deal with, as was the case with the work on the Turcot Interchange. Today’s frustrations will eventually give way to the satisfaction of seeing greatly reduced traffic congestion. Let’s hope it works out for the best. The business community has managed to keep a cool head, focusing on the longer term benefits of all this upheaval."

His misgivings have more to do wondering whether or not those doing the construction work are coordinating their efforts so as to minimize inconvenience. "We more readily accept big cons­ truction sites when they are well coordinated.

There have been failures in the past when streets

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JBC MÉDIA BY DENIS BERNIER

MICHEL LEBLANC CEO Chamber of Commerce of Metropolitan Montréal

were dug up and then eventually sealed, only to be promptly dug up once again. Have we learned from those mistakes?"

The Caisse de dépôt et placement du Québec (CDPQ), the driving force behind the REM transit network, is cognizant of Montrealers’ sensitivity to disruptive roadwork. "We are well aware that it is very impor­tant to minimize any inconvenience, to keep turmoil to a minimum, and we are committed to doing so.

It’s a question of consistency," said Harout Chitilian, vice-president, Corporate Affairs, Development and Strategy at CDPQ Infra, the division supervising the massive REM worksites. "But all work must be done in conjunction with the City, which has a say in the matter, not to mention any surprises that might be encountered along the way."

SUPERB OPPORTUNITY FOR EAST-END MONTRÉAL Michel Leblanc sees enormous potential for the eastern districts of Montréal following the recent announcement that the REM will link that sector to the downtown core. Like everyone else, he believes the sooner the better.

He referred, for example, to the tunnel under Mount Royal. It is more than 100 years old and will be used by REM trains coming from northwest parts of the island. It turned out to be in worse condition than expected, resulting in additional interventions and delays that will, among other things, paralyze access to McGill College Avenue. That branch of the network, which will replace the commuter train from Deux Montagnes, is now scheduled to be up and running by late 2023 or early 2024.

The announcement was generally well received, although questions remain about the train’s route as it will run above ground along René Lévesque Boulevard. "There is still a lot of land for development in that sector, but good public transit is paramount,"he noted. "That will attract both investors and workers but it’s going to take a lot of work, if only to decontaminate the soil. Nonetheless, it’s a great opportunity if it’s done right."

STÉPHAN POULIN

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DOWNTOWN MONTRÉAL

Beyond current and future projects, the Chamber of Commerce CEO remains convinced of the need to improve active public transit in Montréal.

"It’s something all big cities need. We have some catching up to do, but we need to find a balance.

Yes for bike lanes, for example, but we also need to allow heavy transport to use the roads. We must also facilitate traffic both in the downtown core and out to the suburbs."

For his part Harout Chitilian thinks that once completed, the eastern branch of the REM is likely to be of great benefit to the neighbourhoods it will serve. What’s more, "It could be a pivotal moment in Montréal’s urban development. The REM could provide a boost."

It is a fact that the eastern districts of the city are in need of rejuvenation. Will the arrival of an efficient new transit line help? The vice-president of CDPQ Infra thinks so. "For decades, there has talk of breathing new life into Notre Dame Boulevard, greening the area around it and providing citizens with access to the river. The REM project will be

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HAROUT CHITILIAN Vice-president, Corporate Affairs, Development and Strategy CDPQ Infra

SOURCE : CDPQ INFRA

accompanied by major discussions about public spaces.

We are going to propose a forward-looking vision less focused on the automobile."

What about reservations regarding plans to build an elevated structure above René Lévesque Boulevard where the westbound REM arrives at Central Station?

"We have set up an independent committee of experts," said Mr. Chitilian. "The committee will examine means of integrating the rail line into the cityscape and its existing architecture. Public consultations will follow.

Announcements will come in due course, but the objective remains the same. Whichever route the REM serves, it will make traffic flow more smoothly into and around Montréal. The city will benefit."

Initial testing is already underway in the South Shore on what is called a test bed. "For the past few months people have been able to see REM trains running between the Du Quartier and Brossard stations," Noted Mr. Chitilian, adding that this section (which will lead to the downtown core) is expected to open in spring or summer 2022. Other branch lines will be added over time, including one going to the Montréal-Trudeau airport. And that’s not counting

the most ambitious part of the REM, the flagship line to eastern Montréal that will play a key role," he said. It will be planned in such a way as to reduce the potential disruption caused by such large-scale construction work.

Michel Leblanc hopes so, given that many of his organization’s members have been badly affected by the pandemic and the numerous and incessant construction sites that impede traffic flow throughout the city. He thinks that the network might become an attractive calling card for Montréal "as long as it is well done," insisting that the work must be carefully planned. "We will no longer be able to tolerate the kind of quagmires we have been plunged into in the past."

In any case, Montréal is undergoing a real metamorphosis in terms of transportation and urban traffic, from the addition of bike paths, pedestrian streets and the city’s bus fleet replenished with hybrid and electric vehicles.

"What remains is to establish a balance between the various uses so that everyone benefits," notes Mr. Leblanc.

After years of watching the train go by, everything seems to indicate that Montréal has finally boarded the train... a train bound for modernity!

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PROMOTIONAL REPORT

Olympic Park STIMULUS FOR MONTRÉAL’S ECONOMIC DEVELOPMENT Despite difficult beginnings, the Olympic Stadium is now a dynamic symbol of Montréal and is currently experiencing a true renaissance.

A

fter making its début almost 45 years ago, the Stadium "surged ahead despite strong head winds" to become a shining success story, but one that is little-known, said Alain Larochelle, vice-president, Operations and Commercial Development. "It is one of the most used post-Olympic facility in the world!"

Its 165-meter high tower dominates Montréal and remains a must-see tourist attraction. An observatory at the summit offers spectacular 80 km views in every direction.

In addition to its iconic status the Stadium hosts numerous events, a role that will become even more important in the years to come. "Plans are underway to improve the acoustics," he added. "We hope to soon welcome the Beyoncés and Ed Sheerans of this world, to invite them to perform to an audience of over 50,000 fans."

ALAIN LAROCHELLE Vice-president, Operations and Commercial Development

ALL SORTS OF ACTIVITIES AND EVENTS Sports, of course, are the very lifeblood of Olympic Park. 200 athletes train there on a daily basis, and the swimming pool in the Sports Centre offers "more swim lanes than any other facility in Québec". This stunning high performance multisport complex will soon be offering its services to enthusiasts from all over the world. Athletes will be able to work out on cutting-edge equipment, and will have access to sports professionals whose training and coaching programs resemble those available to top level athletes.

Olympic Park is a big draw in the neighbourhood, offering rock climbing, functional training equipment along the revamped Morgan Trail and a recently renovated professional-size bowl with vertical planes for diehard skateboarders. A summer and winter program of outdoor activities is also in the works. To better meet the needs of Montrealers, management wants to make Olympic Park "a food campus" with several access points, including gourmet food trucks. "We want citizens to feel right at home," noted Alain Larochelle.

With its Stadium, Observatory, Esplanade and Sports Center, the park is located in a tourist recreational area that includes the Espace pour la vie facilities, and is well served by two subway stations. It presents numerous activities and events, and hopes to become a driving force for the city and for the development of east-end districts. "What we have is not found anywhere else," said Mr. Larochelle.

"It’s quite unique, a recreational and sports model that really stands out!" n

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INTERVIEW

MONTRÉAL’S ASSETS WILL HELP STIMULATE ITS RECOVERY

BY RENÉ VÉZINA, JOURNALIST SPECIALIZING IN ECONOMICS

Mayor Valérie Plante is counting on the city’s diversity to facilitate its comeback after the shock of the pandemic.

T

he image came to her spontaneously during our interview when she explained why she believes that Montréal is capable of bouncing back despite the damage caused by Covid-19. "Imagine a farmer who has a big field of wheat. If a parasite takes over his field and destroys his crop, he is finished. The farmer’s world collapses. But in Montréal we are not dependent on a single crop, or a single activity.

The city has lots of assets. The pandemic didn’t completely destroy us. We are well positioned to recover," said the mayor.

OVERCOMING OBSTACLES The fact remains that Montréal was already facing major challenges even before the pandemic, with multiple construction sites both above and below ground. No one runs for public office promising to inaugurate new sewer pipes, but such essential work has been going on over the past few years.

The city has suffered from a lack of investment in infrastructure, which has led to emergency work, for example, to prevent the sudden appearance of sinkholes swallowing large swathes of downtown streets. It is also time to rethink urban planning and development, so that they are not tied so relentlessly to the omnipresent automobile.

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

VALÉRIE PLANTE Mayor of Montréal

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Reinvent yourself St. Catherine Street is currently a vast cons­t ruction site, and others like St. Hubert are slated for similar treat­ ment, not to mention the many adjoining streets cluttered with orange cones.

"Yes, we have to fix the plumbing, and that is not a sexy or glamorous project," noted Valérie Plante. "But we had to intervene. Now the pandemic has created additional problems. Hence the measures we’ve proposed to cushion the blow."

She mentioned the example of lower taxes for non-residential buildings for an initial tranche of $750,000. "It’s a start," she said. But since the bulk of municipal revenues in Québec comes from property taxes – about 70% – cities, including Montréal, don’t have much leeway.

Her administration has devised other interventions to support key sectors of the local economy, from manufacturing (which is still active) to high tech and the burgeoning artificial intelligence sector. At the same time, we need to prevent people from deserting the city.

"We need to propose a way of getting back to normal. And by the way, contrary to what you may read elsewhere, down­town may be asleep but it’s far from dead. Just check out the sidewalks."

What she sees are a number of "winning conditions." First, people must want to return to the city, but how do you accomplish that? She wants them to feel safe, wants the city to be clean and welcoming with lots of unique and interesting things on offer, and cons­ truction work that is well managed.

That’s quite a mandate!

→ Discover our new high-tech studios.

Explore Palais Media Propulsion

When you’re ready, we’ll be here!

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INTERVIEW

"The most important thing is to demon­strate the added value of living in the city, whether for students, tourists or citizens, native Montrealers or tourists who come to visit. Montréal remains eminently affordable from all points of view, and offers a beautiful quality of life that will only be enhanced by greening activities and efforts to make it an increasingly eco-friendly city."

were a bone of contention – Montréalers still have bitter memories of the badly managed St. Lawrence Boulevard roadwork fiasco of 2007 and 2008.

"We now have an opportunity to transform that problem into an opportunity," said the mayor, who hopes that the construction work currently underway will ultimately contribute to making the city more attractive.

MAKE GOOD USE OF ASSETS It is also important to revitalize local businesses badly damaged by both the pandemic and e-commerce.

Dominated by international giants, online shopping continues to grab the lion’s share of the retail market. Another sore point is road closures and streets gutted due to infrastructure projects. In the past, poorly coordinated construction projects

But major concerns won’t simply disappear. The thorny issue of transportation fluidity still causes headaches. "We’ve estimated that traffic congestion costs us $4 billion a year," added Mme Plante, who has great hopes for big public transit projects now in progress or in the planning stages (see p. 18).

Under her administration the city has placed strong emphasis on so-called active transportation, with more bike lanes, pedestrian streets and wider sidewalks. At the same time, other projects have been added to the mix. The Caisse de dépôt et placement du Québec launched the light rail rapid transit network (REM). The South Shore, northwest and eastern branches of the new network will converge in the downtown core.

In parallel, everything is in place for an extension of the subway’s Blue line into eastern districts of the city. There are now more reserved bus lanes, especially along Pie IX Boulevard, which will ease congestion. That is good news, because public transit has not kept pace with the city’s development.

"Just imagine, not one new subway station built over the past 25 years," she said. A quarter of a century… at a time when access to the downtown core has become increasingly problematic due to traffic congestion, when efforts are being made to reduce greenhouse gas emissions and when Québec aims to set a leading example.

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" Montréal remains eminently affordable from all points of view, and offers a beautiful quality of life that will only be enhanced by greening activities and efforts to make it an increasingly eco-friendly city. " – Valérie Plante

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

The downtown core cannot do everything singlehandedly, however. "Ultimately, the entire Montréal Urban Community must be involved," all 82 munici­ palities in the MUC. Her motto is "solidarity". Solidarity among citizens, organizations, businesses, municipal districts… Valérie Plante is not alone in believing that we must work together in coping with the first major crisis of the 21st century. "I’m an optimist by nature, and I’d like to reiterate that Montréal is well equipped to get through this and achieve a successful recovery. This city is resilient. It has proven it in the past, and it will prove it again."

INDUSTRIAL WASTELAND

REJUVENATING INDUSTRIAL WASTELAND IN MONTRÉAL

BY PIERRE THÉROUX, JOURNALIST

<

DENIS TREMBLAY

CANADIAN POWER BOAT COMPANY, 4000-4008, ST. PATRICK STREET (SOUTH-WEST)

Located alongside the Lachine Canal, the site offers a breathtaking view of the city and Mount Royal. The landmark building is a magnificent testimonial to the early industrialization of the country. It was where the Canadian Power Boat Company built small fast boats for the Royal Canadian Navy during the Second World War.

T

he shipyard then gave way to a toy manufacturer, and later became a place for artists’ studios. They in turn were evicted to make way for a public works yard to park municipal vehicles. Then the space was abandoned, like so many other industrial complexes that lost their soul over the decades.

But the heritage building at 4000 St. Patrick Street and the former abandoned 28,000 m² (300,000 sq. ft.) lot southwest of downtown will soon have a new vocation. The City wants to revitalize the site and create a new hub of innovative companies as well as studios for artisans.

It is a flagship project for Montréal. "The site has huge potential for developing a mixed-use project that reflects the new economy of light industry, shops and businesses, artists’ studios, green spaces and community activities. We don’t want to build any more smoke-belching industrial plants," said Benoit Dorais, mayor of the Southwest borough and president of the City of Montréal’s executive committee.

BENOIT DORAIS Mayor of the Southwest borough and president City of Montréal’s executive committee

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INDUSTRIAL WASTELAND

NEW ECONOMIC IMPETUS The site was the catalyst for a call for project submissions within the scope of the global Reinventing Cities network. Montréal parti­ cipated in the initiative, a global challenge where cities implement programs to reduce greenhouse gas emissions and climate hazards. In January the City selected four teams as finalists who will present their proposals in September. The main building should be renovated in order to preserve and promote its historical heritage, while the two secondary buildings and the two outbuildings, also located on this large plot of land, are to be dismantled.

Revitalization of the site "will help reinvigorate a sector of the city that needs new impetus and a new economic vocation," added Mr. Dorais.

He cited the example of new momentum in the adjacent Griffintown neighbourhood (also bordering the Lachine Canal), virtually abandoned prior to its transformation as a centre for innovation.

The renaissance of urban districts is part of a wave of other initiatives underway in Montréal to revive abandoned industrial lands. "Urban renewal is imperative. In the evolution of a city, these abandoned sites must make way for better cohabitation between economic activity and urban life. We must allow families who wish to stay in Montréal, or want to come and live here, to settle in neighbourhoods where they can both live and work, or at least take

ÉRIC ALAN CALDWELL Executive committee’s director of urban planning and mobility City of Montréal

advantage of public transit to get to work in other parts of town," said Éric Alan Caldwell, the executive committee’s director of urban planning and mobility.

LACHINE EAST AT THE HEART OF THE MOVEMENT The Lachine East sector, not far from 4000 St. Patrick Street, also has industrial zones along the Lachine Canal that are in decline. Lachine was the location for the manufacturer of iron and steel superstructures for bridges and buildings Dominion Bridge which, like the nearby Dominion Wire Rope factory, set up shop in the 1860s. The area’s imposing industrial complex is now abandoned. This has freed up some 100 hectares (more than one million square meters), also slated for redevelopment.

Here again, the City would like to see mixed-use projects (with both economic and social aspects) that might possibly include new local industries, shops or services that complement what is currently available on nearby Notre Dame St. It also wants to transform this vast industrial wasteland into "an eco-district for families by building housing, schools, day care centres and green spaces," said Mr. Caldwell, adding that the revitalization currently underway is the result of consultation with the local community.

<

THE LACHINE-EAST DISTRICT

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In addition, the project to redevelop the former CPR train marshalling yard in Outremont, built in 1891, aims to revitalize a 38-hectare industrial wasteland situated at the junction where four boroughs and Mount Royal meet. This new knowledge sector, MIL Montréal, is being built around the University of Montréal science complex and will include over 1000 housing units.

As Éric Alan Caldwell notes, "Other redevelopment projects are expected to move forward in the next few years to repair urban scars and rejuvenate these neighbourhoods," citing Montréal’s former horseracing track as an example, as well as redevelop­ment projects around the L’Assomption subway station and in the Plateau neighbourhood between Papineau Ave., Sherbrooke St. and the CPR tracks. <

LOUVAIN EAST SECTOR, IN THE AHUNTSIC-CARTIERVILLE BOROUGH

CREATION OF A FOOD HUB Revitalization is also underway in the Louvain East district of the Ahuntsic-Cartierville borough. This eight-hectare site (the equivalent of eight football fields), bordered by Christophe-Colomb Avenue, de Louvain Street East, St. Hubert Street, the Canadian National rail line and a Hydro-Québec high-voltage line, is located on property formerly owned by the Sulpician Fathers. The City wants to transform the site of its former municipal car pound, abandoned since it ceased operations in 2008, into an ecodistrict comprising 800 to 1,000 housing units and local shops. It also plans to develop a food hub. "Urban agriculture will be given an important place in the rejuvenation project for this sector," added Mr. Caldwell.

SOCIÉTÉ DE DÉVELOPPEMENT ANGUS

<

The installation of a 550 m2 (5900 sq. ft.) greenhouse dedicated to the production of fruits and vegetables (that might also be grown in a field) should help alleviate the paucity of good grocery and food choices in the area, currently limited to a few conve­ nience stores and some restaurants near Ahuntsic College. The project would provide residents with better access to fresh, healthy foods.

TECHNOPÔLE ANGUS

TECHNOPÔLE ANGUS, AN EXEMPLARY PROJECT There are several revitalization projects underway in Montréal, some of them quite inspiring.

Today Technopôle Angus has numerous local businesses and shops in a neighborhood that has become a thriving eco-district home to thousands of residents.

About 25 years ago a project to redevelop the former CP Rail Angus Shops was launched. It became a model for rejuvenating an industrial district far past its glory days. The Canadian Pacific Railway had abandoned the huge workshops used to manufacture or repair railway equipment.

"The redevelopment of this derelict area was marked by daring innovation. It is a beautiful laboratory that demonstrates a city’s capacity for self-renewal," noted Mr. Caldwell. That is a major challenge that Montréal, like many other big cities, is facing head-on.

MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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CIRCULAR ECONOMY

THE CIRCULAR ECONOMY, OR THE RIGHT WAY TO BE GOING IN CIRCLES

BY PIERRE THÉROUX, JOURNALIST

It all started with a simple phone call

LOOP

D

espite efforts to reduce waste, the major fruit and vegetable importer and distributor Courchesne Larose was sending no less than 16 tonnes of substandard looking products to landfill sites for industrial waste, every day.

Looking for solutions to reduce its losses and the high cost of waste removal service, the firm spoke to David Côté, the founder of the vegetarian restaurant Crudessence and the firm Rise Kombucha. Thus was born Loop, a company that since 2016 has specialized in the production of cold-pressed juices from fruits and vegetables downgraded by the food industry. "Five years ago there was little talk of the circular economy.

Now it’s on everyone’s lips, and this is just the beginning," said David Côté, a co-founder of Loop.

Basically, the circular economy aims to make better use of goods or services at all stages of their life cycle, insisting on their re-use. It thus goes against the current linear model. Traditionally we extract, we produce, we distribute, we consume... and then we throw away.

LOOP

DAVID CÔTÉ Founder Crudessence and Rise Kombucha Co-founder Loop

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

But there is still a long way to go. Although Montréal is well positioned compared to other major Canadian and North American cities, it lags behind European cities which are leaders in this area, stated the Conseil jeunesse de Montréal in its Avis sur l’économie circulaire presented in autumn 2019.

A year ago, for example, the city of Amsterdam adopted an ambitious action plan to have a completely circular economy by 2050. Greater Paris has made it a priority axis of its economic development plan, and the deputy mayor of Paris is responsible for all matters related to the social and circular economy.

PROLIFERATION OF PROJECTS There are now all sorts of initiatives for developing the circular economy in Montréal, notes Melissa Stoia, director of sustainable development and the circular economy at the business support network PME MTL Est-de-l’Île. "We’re seeing more and more startups adopting circular economy principles as a business model, and there is also more excitement from existing businesses. We’re starting to reach a critical mass in favour of a rollout on a larger scale," said the director, who is also in charge of coordinating the Synergie Montréal initiative, launched in 2016 to facilitate symbiosis among companies to push this new economy further.

PME MTL EST-DE-L’ILE

MELISSA STOIA Director of sustainable development and the circular economy PME MTL Est-de-l’Île

The tool sharing co-op La Remise in the Villeray neighbourhood and the computer repair service Insertech in Rosemont are two of the 300 or so circular economy initiatives registered in Montréal. Another of note is the car sharing service Solon for residents in certain sectors of the Rosemont and La Petite Patrie neighbourhoods.

Two-thirds of these projects are run mainly by social economy associations, non-profit organizations and cooperatives (41%), municipal organizations (19%) or are initiatives launched by citizens, collectives or institutions (5%). Only one-third (35%) were initiated by companies, industries or businesses, such as the Les 3 brasseurs chain of restaurants which offers its brewing yeast sediment to TriCycle, a company that uses food waste and organic materials from agri-food firms in the Montréal region to produce edible insects such as crickets!

BUSINESS NEEDS TO STEP UP It’s time now for businesses "to play a leading role in shifting from a linear economy to a circular economy. That’s where they’ll make a bigger impact," notes Daniel Normandin, director of the Centre for Intersectoral Studies and Research on the Circular Economy (CERIEC), launched last fall by the École de technologie supérieure (ÉTS). This new centre is pursuing the work of the EDDEC Institute, affiliated with the University of Montréal. Also directed by Daniel Normandin, it completed its studies of the circular economy in 2020 after five years of existence.

CERIEC

DANIEL NORMANDIN Director Centre for Intersectoral Studies and Research on the Circular Economy (CERIEC)

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CIRCULAR ECONOMY

Thanks to a $2 million donation from Mouvement Desjardins, CERIEC intends to set up an ecosystem of eight circular economy acceleration laboratories. The first Living Lab will focus on managing waste from construction, renovation and demolition, a recurring problem for municipalities.

"In all big cities, it is the construction sector that consumes the most resources. It is also a major generator of waste," said Daniel Normandin, adding that CERIEC is also interested in the agri-food and electronics sectors. "The objective is to win over key players in these industries to identify obstacles to the circularity of certain products, and to work with them to come up with solutions together."

Large cities are at the forefront of the transition to a circular economy. They are now home to more than half of the world’s population, consume approximately 75% of natural resources and generate from 60 to 80% of greenhouse gas emissions. It is a pressing issue. "It is in cities, with their high densities of people and industries, where both problems and solutions are to be found.

For if we don’t change our current model of economic development, we’re heading straight for disaster," added Daniel Normandin. $30 MILLION FUND In that regard, Mr. Normadin is delighted with the launch in March of the Circular Economy Fund by Fondaction, in conjunction with its partners RECYC-QUÉBEC and the City of Montréal. "That will help companies make the shift toward a more circular economy." This new $30 million investment fund, the first of its kind in Canada, will target chiefly the agri-food, recycling and resource recovery, and eco-construction sectors.

LOOP

JULIE POITRAS-SAULNIER Co-founder and president Loop

CERIEC and the ÉTS are also advocating to include classes on the circular economy in training programs for engineers and managers who, once they enter the job market or launch their own firms, will be in a position to promote and implement circular economy strategies.

In fact, a generational changing of the guard is already being felt, notes Melissa Stoia. "Young people want to work for organizations that will have a positive impact on the environment."

In the meantime, Loop is multiplying its activities. In addition to its cold-pressed juices, the young company has started making fruity beers from bread recovered from bakeries, as well as gin made from potato scraps provided by the potato chip producer YumYum. "Every week we receive calls from companies looking for ways to recover value from surpluses or substandard products that are rejected," said Julie Poitras-Saulnier, co-founder and president of Loop, who is also working on developing a line of cosmetics made from waste coffee grounds.

There is no doubt that the expression "Nothing is lost, nothing is created, everything is transformed", coined by the French chemist Lavoisier in the late 1700s, now resonates with new meaning.

ISTOCK BY DVOEVNORE

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PROMOTIONAL REPORT

Société de transport de Montréal

KEY PLAYER IN THE ECONOMIC RECOVERY With an investment plan of $18G over the next 10 years, the Société de transport de Montréal (STM) is firmly committed to playing an active role in the economic recovery of the city and Québec as a whole.

B

ecause of the pandemic the STM has experienced a significant drop in ridership. "We are currently moving about 450,000 people per day compared to 1.5 million daily trips before COVID-19," said Luc Tremblay, the transit authority’s general manager. That has not put a stop to its investment projects, however.

"We are one of the largest employer in the city," he added. With more than 11,000 workers, the STM is the 13th biggest employer in Québec. It has an annual budget of $3G, half of which is set aside for its infrastructure projects.

Faced with aging facilities, a few years ago it launched a vast project to renovate its bus and metro infrastructure, which will continue until 2025. "At the moment, we have about 100 construction projects underway," said Mr. Tremblay. "We are also pursuing our Accessibility program, which will eventually see the installation of elevators in our 68 metro stations.

Currently some twenty stations are equipped with them, and there will soon be fifteen more."

The STM has also replaced the MR-63 models with Azur trains built by Bombardier-Alstom, a colossal project that required an investment of more than $2G. It has begun a second phase of acquiring 17 more trains. "We’ve already received about 60 new ones, and 10 more will be coming in 2021," he noted.

LUC TREMBLAY General manager Société de transport de Montréal

AN ELECTRIC FLEET Over the past three years the STM has increased its fleet of vehicles by 15% with the addition of some 300 hybrid buses. The transit authority is also making the shift to electrification. "By 2025 we will be purchasing only electric buses. That will mean adapting our transportation centres and installing charging stations. In addition, we need to build two new centres."

Seven fast-charging electric buses are currently on the streets of Montréal, and trials are underway with slow-charging electric buses. "The #36 Monk line, which connects downtown to the Angrignon terminus, was the first completely electrified bus route in North America. To achieve that goal we had to validate several elements, including testing the capacity of batteries over long distances. We now know that the technology is reliable even in winter."

RENOWNED EXPERTISE The STM has embarked on another key structuring project: the extension of the Blue line of the metro, which includes the addition of five new stations serving the east end of Montréal. This investment of several billion dollars is part of its Public Transit Strategic Development Plan, and the STM is responsible for its construction. "It’s a first for us," explained Luc Tremblay. "In the history of the metro we have never been responsible for building a new metro extension.

We are very pleased, because it means that our expertise is recognized and appreciated."

Given all these projects, the STM generates many jobs in the Montréal region and elsewhere in Québec.

With the end of the pandemic on the near horizon, it is looking forward to a return to its pre-pandemic ridership. "Once business activity resumes, we’ll be able to participate in the city’s economic recovery." n MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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AGRIBUSINESS

MONTRÉAL, HOME OF ROOFTOP FARMS AND VINEYARDS!

BY PIERRE THÉROUX, JOURNALIST

The harvest was particularly good last summer: just over 2.5 tons of tomatoes, eggplant, sweet peppers, chili peppers, runner beans, zucchini, lettuce, bok choy, kholrabi cabbage, radishes, cucumbers, peas, carrots and fennel… all of it grown downtown on the roof of the Palais des congrès!

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he vegetables, grown in less than 660 m2 of soil (roughly 6,500 sq. ft.), are an indication that urban agriculture is clearly on the rise in Montréal.

While the city has a long tradition of community gardens, urban agriculture is not a leisure activity but decidedly a commercial endeavour.

It is also increasingly important, for as the pandemic and its containment have demonstrated, it is "a key element in bringing the places of production and consumption closer together, thus ensuring greater local food security," notes Jean-Philippe Vermette, co-founder and the director of inter­vention and public policy at the Urban Agriculture Laboratory that supervises the operations of the experimental farm at Palais des congrès.

Most of the harvest is delivered to the Carrefour alimentaire Centre-Sud food bank, an organization that supports "the development of a local, ecological and solidarity-based food system" according to its website, and much of it is then sold at the Marché solidaire Frontenac.

FRESH FOOD STRAIGHT FROM… THE ROOF Montréal is a city where urban agriculture is very popular, thanks in no small part to Lufa Farms, an urban agriculture company that over the past 10 years has shown that this is a viable form of agriculture, and actively encourages its expansion and development.

In 2011 the 30-year-old Montréal entrepreneur Mohamed Hage founded Lufa and set up the

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world’s first commercial rooftop greenhouse farm.

The 2880 m2 (31,000 sq. ft. ) greenhouse is located in the Ahuntsic-Cartierville borough. Since then, the firm has built three more even bigger greenhouses. The one in Ville St. Laurent was inaugurated in sum­mer 2020 and measures some 15,236 m2 (164,000 sq. ft.), the equivalent of three football fields.

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URBAN AGRICULTURE LABORATORY

JEAN-PHILIPPE VERMETTE Co-founder and director of intervention and public policy Urban Agriculture Laboratory

The neighbourhood is also home to the largest organic supermarket rooftop garden in the country. An IGA grocery store that opened in 2017 sells Ecocert certified vegetables grown on its 2323 m2 (25 000 sq. ft.) green roof.

On a smaller scale, some Montréal restaurant owners also grow their own vegetables. Toqué, for example, has a vegetable garden on the roof of the Caisse de dépôt et placement du Québec building. "More and more building owners and managers are creating rooftop vegetable gardens," said Jean-Philippe Vermette. He is of the opinion that many buildings in industrial parks scattered throughout Montréal offer the greatest potential for developing commercial rooftop gardens.

The project will not only contribute to the revitalization of Montréal’s eastern districts, but will also increase food security for the Greater Montréal region. In response to the impacts of the pandemic, the City has decided that urban agriculture will play a key strategic role in its efforts to revive the economy.

There are about 40 urban agriculture firms in Montréal, with a dozen of them in the Centrale Agricole urban farming co-op, located in an industrial building in the garment district near the central market in AhuntsicCartierville. Co-op members cultivate products ranging from mushrooms to edible insects to herbs and vegetables.

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GREENHOUSE COMPLEX The Urban Agriculture Laboratory will soon be conducting a study, in conjunction with the IRBV plant biology research centre, for the eventual establishment of a greenhouse complex in the Rivière des Prairies/Pointeaux-Trembles borough in accordance with its urban agriculture policy.

ROOF OF THE CENTRALE AGRICOLE

in the years to come in collaboration with partners such as Canadian National Railway and Lafarge Cement, each committed to planting thousands of trees along its right-of-way.

These green corridors "will help revitalize neighbourhoods while providing protection from noise, dust and odours," said Malin Anagrius, executive director of the Société de verdissement du Montréal métropolitain (Soverdi), an organization dedicated to greening the city chiefly by planting trees.

Last summer on the roof of the Centrale Agricole, Montréal’s most recent urban farming venture took root – the world’s biggest rooftop vineyard! Its 200 vines add to the 345 vines already cultivated on the roofs of the Palais des congrès (2017), the Institut de tourisme et d’hôtellerie du Québec (2018), Ubisoft Montréal (2019) and the vineyard in the basement of the Société des Alcools Campus (2018) in the Mercier-Hochelaga Maisonneuve borough. These urban vineyards have so far produced a hundred bottles, and that is just the beginning.

GREEN CORRIDORS The greening of Montréal is not limited to the develop­ ment of urban agriculture. Last December, Hydro-Québec and the City of Montréal announced the creation of a 27-km long green corridor that, over the next 10 years, will link the Bois de Saraguay Nature Park and Angrignon Park. Part of the new greenway will incorporate the Hydro-Québec corridor of power lines connecting several city boroughs. Other green corridors will be developed

SOVERDI

MALIN ANAGRIUS Executive director Société de verdissement du Montréal métropolitain (Soverdi) MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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AGRIBUSINESS

REQ

AMÉNAGEMENT CÔTÉ JARDIN

EVE LORTIE-FOURNIER Assistant director REQ

PIERRE DAGENAIS Co-founder and CEO Aménagement Côté Jardin

Soverdi’s current project is to plant 300,000 trees on the Island of Montréal between 2015 and 2025, including 180,000 on corporate and institutional grounds.

Soverdi and Regroupement des éco-quartiers (REQ) are also asking citizens to contribute, encouraging them each spring to plant trees on their properties. The Un arbre pour mon quartier program allows them to obtain trees at very low cost. Montrealers have planted more than 17,000 trees since 2013, including 4400 planted last year alone. "There is increasing interest every year, and we will most likely surpass that number this year," said Eve Lortie-Fournier, assistant director of REQ.

GREEN ALLEYWAYS The city’s many alleys and back lanes, so characteristic of certain neighbourhoods, are another example of the increased greening of Montréal. There are now some 450 "green" back lanes, transformed often at the initiative of local residents, with some of the makeovers receiving financial support from REQ. Montréal’s urban landscape has changed in recent years, with more emphasis on greener neighbourhoods and buildings, noted Pierre Dagenais, co-founder and CEO of Aménagement Côté Jardin. "There is growing interest and effort on the part of municipal authorities and property developers to create living environments better integrated with nature," he said.

His firm specializes in landscaping and has put its stamp on several major projects in recent years, such as the Frédéric Back Park in the former Miron Quarry in the St. Michel borough, which later became a garbage and landfill dumpsite.

The firm is also involved in the rejuvenation of Viger Square and recently transformed Cabot Square, a century-old park next to the old Montréal Forum, into a small urban forest. These and other projects favour the "emergence of new living environments for local citizens," said Mr. Dagenais.

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

SPECIAL REPORT ECONOMIC DEVELOPMENT

PROMOTIONAL REPORT

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A RESILIENT, GREEN, INCLUSIVE CITY INTERVIEW BY NATHALIE SAVARIA

Since the beginning of the pandemic, more than $260M has been allocated to local firms and businesses to support Montréal’s economic recovery, with $60M of those funds earmarked for the city’s 2021 Recovery Plan, Act Now to prepare for Recovery.

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MONTRÉAL’S GRAND DESIGN: TRANSFORM ITS ECONOMY hat is made abundantly clear in the Montréal 2030: A Strategic Vision report, a guide to the city’s orientations over the next few years, which includes measures to cope with the pandemic. The strategic plan will focus on three key elements: economic resilience, eco-friendly transition and social inclusion.

"The social economy is a dynamic response to these three issues, and Montréal is devoting a substantial part of its budget to this approach. No city in the world is doing that. A strong, bold position has been taken," said Luc Rabouin, mayor of the Plateau-Mont-Royal borough and member of the executive committee responsible for economic and business development, and design.

He firmly believes in the plan. The social economy "is not a sector of the economy, but a way of doing business," he added. Its primary goal is to maximize social benefits before financial profitability. "Social inequalities inten­ sified during the pandemic, so increasing the role of the social economy is a structural response to that issue."

LUC RABOUIN Mayor of the Plateau-Mont-Royal borough and member of the executive committee responsible for economic and business development, and design City of Montréal

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SPECIAL REPORT ECONOMIC DEVELOPMENT

"To ensure an inclusive recovery, the social economy, by its collective legal form, leads to a better sharing of wealth all round. As we all know, to maintain the quality of life and security in a city we must collectively ensure that our model is as inclusive as possible."

our focus to make sure that a maximum number of people benefit from Montréal’s economic boom, while also rising to the challenge of climate change. The social economy can be of great assistance in addressing those challenges."

But the city’s dynamics must be based on short-term actions to address the health crisis. In addition to social inclusion, economic resilience is also important, as is engaging in a transition to an eco-friendly economy.

The City of Montréal is calling on the social economy to help the restaurant sector, very hard hit by the pandemic, notably by curbing the growing encroachment of digital platforms owned by multinationals. The Québec government has adopted legislation to limit the high commission fees seen during the pandemic, and the City has decided to put a permanent solution in place.

"Very soon we will be contacting the social economy community with a call for proposals for a viable longterm and affordable online system for an ordering and delivery solution for restaurant owners. What we want is a consortium-type solution. We will invite people to come together to develop a proposal. If we think it’s sound, we’ll fund it," said Mr. Rabouin.

DOING BUSINESS DIFFERENTLY In Montréal the social economy represents some 2800 firms and 67,000 jobs, annually generating $11.7G of revenue. Many of those jobs are held by women and people from diverse social and ethnic backgrounds.

Social economy enterprises are present in various economic sectors, and the idea is attracting interest among young entrepreneurs "who have a strong sense of social and environmental responsibility and are looking at collective business models," noted Mr. Rabouin. He mentioned PIVOT, the first-ever architectural cooperative (founded in 2017) and L’UTILE, a non-profit organization created by students dedicated to the promotion and development of cooperative housing for students in Montréal and Québec City.

He noted that "before the crisis Montréal was in the midst of an economic boom, and all indicators suggested ongoing growth. Last year, however, an important report from the Foundation of Greater Montréal pointed out that the positive spinoffs of that flourishing economy benefited some more than others, a phenomenon now even more pressing since the beginning of the pandemic.

We want to make sure that the economic recovery is green and inclusive. We have an opportunity to adjust

Social economy initiatives are just one part of the City’s efforts to support the city’s economy in the short term and to prepare for a green and inclusive recovery.

THE DOWNTOWN CORE STRONG LEADERSHIP FOR THE CITY The downtown core is the geographic area most affected by the pandemic, accounting for 14.4% of jobs in the Metropolitan Census Area. In its 2021 recovery plan, Montréal is devoting $10 million to rebooting the city centre, while the provincial government will contribute an additional $15 million.

For Mr. Rabouin, damage to the downtown core is both cyclical and structural. The former (e.g. decline in hotel occupancy) is expected to be resolved after the pandemic, while the latter (e.g. telecommuting) will profoundly change the future of the city centre.

According to Véronique Doucet, director of the municipal Economic Development Service, many of the 300,000 downtown employees have not returned to their offices.

In all likelihood telecommuting is here to stay, at least in hybrid form. Consequently office buildings, like the downtown core, will need to change accordingly and provide an attractive experience for workers. The City’s plan includes financial assistance for workspace conversions in office towers, along with incentives for small businesses to relocate there. Urban design, including outdoor workspaces, is another focus of the City’s thinking. They are to be set up this summer.

At the same time, the City has set up a committee with its partners to facilitate a safe return to work for employees

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

in large buildings, at least until the vaccination rollout is completed. "It’s not just about design, it’s about perceptions," said Ms. Doucet. "We need to restore a sense of safety and security for people who work in large office towers." Protocols will also be established for colleges and universities, when regular in-person classes are expected to resume this autumn.

The resilience of the downtown core is thus paramount.

"The pandemic demonstrated that it is the economic sector itself, not just physical location, that contributes to the overall economy of Québec and to its international influence. Government authorities must recognize the economic importance of the downtown core for Montréal, Québec and Canada," said Luc Rabouin, who is hoping for the best.

THE CITY IS WORKING ON IT. IT’S TIME NOW TO SHIFT TO AN ECO-FRIENDLY ECONOMY He cites as an example Montréal’s manufacturing base, a driving force in the Québec economy. "We need to ensure that our manufacturing companies continue to plan their activities in an innovative and creative fashion, with an emphasis on reducing at source and reusing materials such as waste, which then becomes the raw material for another company."

A green transition is necessary "because the city needs to develop more clean technology companies, encourage new technologies, reduce its waste and solve problems related to single-use plastics and products made with non-recyclable materials." And to achieve that goal, Montréal is counting on the circular economy, among other things (see p.30).

This new shift will entail coaching and financial support for businesses, as companies might be required to modify their built environment, their business model and their technologies, or retrain their workforce, a challenge Mr. Rabouin is well aware of.

INCLUSION AN URGENT IMPERATIVE FOR TOMORROW’S ECONOMY This major transition will obviously have an impact on the workforce. "Talent is the key to the development of the city’s economy. We must ensure that we have enough workers to meet our present and future needs.

We also need to support more vulnerable employees who require retraining. We must provide training and opportunities for career development that will give them skills useful in other sectors of the economy. The City is working with stakeholders to determine future skill requirements in order to provide the tools and support that will allow for a gradual shift toward this new approach," said Ms. Doucet.

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VÉRONIQUE DOUCET Director of the city’s Economic Develop­ment Service City of Montréal

Although they were a response to a specific context, the measures implemented in both phases of the City’s stimulus plan laid the foundation for more resilient, greener and more inclusive economic development.

Certain sectors were hard hit by the crisis: the retail sector (10.3% of jobs in 2019), the cultural and creative sector, and food service and restaurants (a total of 10.9% of jobs in 2019). While these sectors were able to benefit from federal rent and wage assistance programs, they also needed to change and adapt to increase their resilience.

Despite its strong economy, the current crisis has made Montréal aware of the importance of certain sectors of activity such as the bio-food industry. "Food resilience is one of the things we need to work on. We need to produce more within our territory and reduce the travel time for products we consume, rather than importing the majority of them," said Luc Rabouin. As regards the various sectors of economic activity, "We need to determine which ones are really fragile, which absolutely must be part of our future economy, and what we need to do to ensure first that they survive and flourish, and then that they play a key role in ensuring the City’s resilience."

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SPECIAL REPORT ECONOMIC DEVELOPMENT

As online shopping became more prevalent, the City funded organizations that not only help businesses set up websites, market their products and organize their supply chain, but also focus on the distribution chain to ensure that the merchandise is shipped to Montréal.

"What we want," notes Véronique Doucet, "is urban delivery with smaller players, as it creates jobs and helps merchants by providing a lower cost solution that also reduces the carbon footprint."

To support the cultural and creative sector, the City created a number of initiatives such as a project involving artists and content creators working in the digital sector.

That led to exhibits of art works in parks and on building facades in the 19 boroughs, an example of the circular economy where the financial support and work of one sector benefits another. Winter displays were also created to brighten commercial streets and support local shopping during the holiday season.

In the food service sector, the City is developing an alternative model of ordering and delivery, one that makes use of the social economy (see p.30).

It is also important to support small and medium-sized businesses: "99% of the economic fabric of Montréal is composed of small and medium-sized firms, more than half of which have less than five employees," noted Ms. Doucet. "We are not talking about multinationals that have the means to pay for such restructuring themselves, but about smaller companies that need support, a helping hand from the community." To that end, the Economic Development Service relies on its network of experts and consultants like PME MTL, as well as some 100 partners.

The entire Montréal ecosystem is joining forces with companies to assist them during this transformation.

Moreover, despite the current crisis Montréal remains attractive to foreign investors. In the first quarter of 2021, foreign investment amounted to some $622.45 million, the majority of it in the technology sector. In addition, the city has almost regained its pre-crisis level of employ­ment, a performance that compares favourably with other Canadian cities. "We are convinced that with the collabora­tion of our partners, Montréal will not only regain its pre-crisis momentum but will also be able to establish a prominent position on the international scene," concludes Luc Rabouin.

TOWARD A MORE CIRCULAR ECONOMY Aiming for a greener, more inclusive recovery, the City of Montréal is accelerating the transition from a linear to a circular economy.

An important step has been Montréal’s commitment as the first municipal partner in Fondaction’s Circular Economy Fund.

Launched on March 23, 2021, the $30M investment fund has been augmented by a $3M grant from RECYC-Québec and is a Canadian first. This venture capital fund will finance and support start-up companies in Québec that offer innovative solutions for the circular economy. Approxi­ mately 75% of initial investments will be in the agri-food, recycling, resource recovery and eco-construction sectors.

Approved companies may obtain an investment ranging from $250,000 to $2M. Some might also receive a RECYCQuébec grant worth between $50,000 and $100,000.

A STRONG MESSAGE Josée Chiasson, director of economic cluster development at the City of Montréal’s Economic Development Service, notes that "being able to create a leverage effect with a partner like Fondaction, which is able to raise additional capital, shows that the City is really sending a strong message."

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MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

Montréal is aiming "to position itself as a leader in the circular economy in North America. We have a head start, given that there is already an ecosystem in place."

In its 2021 Recovery Plan, Montréal has earmarked $8 million of its $60 million budget to ensure a shift towards the green transition. The city wants to increase the resilience of its economy "to diminish the dependency on resources and to maximize the use of resources." In line with the strategic vision of Montréal 2030 and its Climate Plan, the City wants to reduce waste and greenhouse gas emissions. The circular economy, which consists of optimizing resources at each phase of the life cycle of a good or service so as to reduce the environmental impact, is one of the solutions employed to reach that goal.

JOSÉE CHIASSON Director of economic cluster develop­ment Economic Development Service City of Montréal

INNOVATIVE FINANCING TOOL For Fondaction, the Circular Economy Fund is at the very heart of its mission, which is to create and maintain quality jobs while contributing to a better performing, more equitable and greener economy. "We are filling a need in the market in terms of financial innovation. It was a natural step for us; it’s in our DNA to launch a circular economy fund," said Marc-André Binette, assistant head of investment, Alternative Private Investments at Fondaction.

In his opinion, "The strength of this fund is our partnership with the City of Montréal and RECYC-Québec." In fact, companies will be assisted by RECYC-Québec experts to implement or improve circularity processes. In Montréal they will also benefit from support from Synergie Montréal (PME MTL Est-de-l’Île) for implementing circularity strategies and finding new opportunities.

A SUSTAINABLE SOLUTION Fondaction intends to pursue its current momentum.

After demonstrating the feasibility of the new circular economy fund that it intends to enhance, it will invest in growth companies.

As for the City of Montréal, it is currently drafting a roadmap.

The first steps are to establish a detailed portrait of the situation in order to determine the niches that offer opportunities, and then help the ecosystem develop new projects. Secondly, the City intends to increase support for the ecosystem through coaching and networking with companies, research centres, universities and various organizations in the circular economy. As for a private fund to finance projects, it has already been established.

"So we are taking action," said Josée Chiasson, "but always with a game plan that is structured for both the medium and the long term."

MARC-ANDRÉ BINETTE Assistant head of investment, Alternative Private Investments Fondaction MONTRÉAL ECONOMIC POWERHOUSE : : SPRING 2021 EDITION

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