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City of Montreal to reduce terrace fees until 2030

A boost for Montreal’s downtown restaurant scene as terrace season gets underway, the city announcing a significant reduction in fees for those downtown and in the Ville-Marie borough – the measure expected to remain in place until 2030.

“Previously we felt like we weren’t partners,” said Sandra Ferreira, general manager, Ferreira Group. “Now we feel like restaurants as well as stores in downtown Montreal – are partners with the city.”

“It’s an announcement that says to all merchants in downtown core, ‘You’re part of the solution. Build a terrace so people will come’,” explained Soraya Martinez Ferrada, Mayor of Montreal.

“Soraya, she did what she said last October. It’s not usual for bars or restaurants to receive gifts like this, so I think it’s pretty good news,” added Martin Guimond, owner, Microbrewery Le Saint-Bock.

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The city says it is also working to speed up permit approvals, which currently take about 10 to 12 days, recognizing how critical terrace season is for downtown restaurants.

The new pricing includes a $150 base fee, with surface costs set at $1.14 per square foot in the downtown core, and $0.56 in surrounding areas.

“It gives restaurants an incentive to invest in their terraces without permit costs becoming a barrier,” said Martinez Ferrada.

“It’s good for the city. It’s pleasant. The terraces are full, people are out, tourists and especially locals,” said Daniel Alonzo, co-owner of Chez Alexandre.

Guimond says the reduction is a game changer, allowing him to nearly double capacity with up to 30 additional seats. In peak summer months, he says the terrace can generate as much as 80 per cent of revenue.

“It means everything. In the summertime, without a patio, you don’t make money,” said Guimond.

“If we lose our terrace, it would be a huge drop in revenue,” added Alonzo.

The move follows tensions two years ago, when some terraces were shut down during Grand Prix weekend over safety concerns, straining relations with the previous Plante administration.

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“They were doing inspections in the moment and not explaining the rules,” said Ferreira. “As restaurant owners, we don’t have a guide for everything that happens in the city. I feel like things have opened up, and I’m hopeful this won’t happen again.”

“We make mistakes, and sometimes it happens,” said Imad Nabwani, owner of Le Pois Penché. “But instead of feeling like they were trying to help find a solution, the approach in the past was to penalize.”

“Now, I feel the direction is very positive. Now, to tell you the truth, I know the names of the people in the city. I have even their phone numbers, so I can call and if I have a problem, they help to find a solution,” said Nabwani.

City officials say safety remains a priority, with all terraces still requiring fire department approval.

“We want to work with people to ensure terraces are safe and that everyone can enjoy the city responsibly,” said Richard Liebmann, director of the Montreal Fire Department (SIM). “Rather than taking a punitive approach, we’re focusing on collaboration and improving communication so business owners have a clear point of contact.”