Pierrefonds developers sue Montreal for $178 million
By Chelsey St-Pierre
The Suburban
A $178-million lawsuit against the City of Montreal has been revived, revealing a stark pattern of costly delays and shifting requirements that developers say has drained $500,000 in consulting fees while yielding nothing but rejections.
Three developers — Développements Pierrefonds Inc., Les Immeubles l’équerre Inc., and Quartier de l’ouest de l’île — suspended their original lawsuit in 2019, hoping to negotiate in good faith with the city. What followed, according to court documents, was a four-year process that saw them submit 14 different proposals, each responding to previous city objections, only to face new requirements.
“My clients are reluctant litigators,” said Ali Argun, the developers’ lawyer. “My clients want to work hand-in-hand with all government bodies and authorities, city and borough included. My clients are making every effort to satisfy every request made of them, and those requests, it appears, are never-ending.”
The latest rejection cited an unexplained fire department policy, which developers claim the city refused to elaborate on when questioned. This follows a documented pattern of permit rejections based on what courts have found to be “irrelevant considerations” in other Montreal development cases.
The dispute centers around what was originally planned as a 5,500-unit housing development, now scaled back to 3,800 units. The latest proposal includes significant social housing components and rental units in buildings ranging from three to ten stories, with commercial spaces and direct connections to the REM transit system.
The conflict’s roots extend back to 2015, when former mayor Denis Coderre had conditionally approved the project, requiring that approximately half the land be preserved for conservation. The situation changed dramatically after Mayor Plante took office, particularly when her administration cancelled plans for an urban boulevard that would have served the development.
The lawsuit alleges “disguised expropriation” and challenges controversial claims made on social media by former interim Projet Montréal leader Luc Ferrandez, who they say unfairly linked them to organized crime. The developers are also seeking reimbursement for years of property taxes paid on land they now claim they cannot develop.
In court Friday, city lawyer Alexandre Paul-Hus stated that the municipality sees no point in further discussions, despite having encouraged continued proposal submissions over the past four years. The city’s 2020 court filing argued that development remains possible under existing bylaws, which permit two-story housing, though developers contend this makes the project economically unfeasible.
The disputed land falls within the proposed Grand Parc de l’Ouest, which would create Canada’s largest municipal park. Environmental groups have long advocated for preserving the area, citing its crucial role in maintaining biodiversity on the island.
A Superior Court judge has given both parties 20 days to establish a timeline for moving the case forward. The developers’ legal team indicated the damage claim would likely increase substantially, citing rising property values and mounting professional fees since 2019.
Mayor Plante’s office did not respond to requests for comment on this latest development in the long-running dispute.
The case highlights a broader crisis in Montreal’s development landscape. With current permit processing times averaging 580 days in Montreal — nearly two years — the city’s development paralysis stands in stark contrast to other Quebec municipalities. While developers in Montreal wait through multiple seasons for basic approvals, cities like Saguenay process similar permits in just 14 days, and Drummondville has maintained similarly efficient timelines. The city recently announced plans to impose a 120-day deadline for boroughs to issue building permits — a target that, while representing a significant improvement, would still take more than eight times longer than some of Quebec’s better-performing regions. n
Pierrefonds developers sue Montreal for $178 million Read More »



