Understanding the ARTM’s New Development Charge

Author:  Diana R. Lyrintzis and Marie-Claude David

The Autorité régionale de transport métropolitain (ARTM) recently introduced a new development charge to help finance the extension of the Montréal Metro’s Blue Line. While this charge is expected to bring long-term benefits to the city’s east end, the associated costs present immediate financial and strategic burdens for developers and property owners.

At KRB, we advise a wide range of developers, owners and investors throughout the real estate deal cycle. With this in mind, we broke down its terms and impacts.

Key Details of the New ARTM Development Charge

• Applicability: The charge applies to new construction, reconstruction, or redevelopment projects within a 1-kilometre radius of the five new stations planned along the Blue Line extension (Pie-IX, Viau, Lacordaire, Langelier and Anjou), all primarily located along the Jean-Talon axis in the east end of Montréal.
• Thresholds:
  • Minimum Project Value: Projects exceeding $935,222 (indexed annually on Jan 1).
  • Minimum Floor Area: Projects with a floor area of at least 186 m² (2,000 sq. ft.).
• Charge Amount: $132 per square metre of floor area in 2025 (indexed annually on Jan 1).
• Payment Timing: The charge is payable at the time of obtaining the building permit.

Strategic Implications: A Business-Legal Perspective

The real implications of this new charge extend far beyond a line item in a project budget. Developers, landowners and stakeholders must now evaluate how the charge impacts acquisition structure, financing, and project viability. Some of the items to consider are :

1. Increased Development Costs

The $132/m² charge can quickly scale, adding significant costs to projects.

1. Impact on Project Viability

Strategic financial modeling is essential to assess feasibility under the new regime—particularly for developments in early-planning stages or those approaching critical investment milestones.

1. Legal Structuring and Risk Allocation

Sophisticated projects may benefit from rethinking ownership structures, cost-sharing arrangements, or builder agreements. Clarity around who bears the cost—and how it’s disclosed or shared—can help avoid disputes later in the cycle.

1. Land Valuation and Transaction Terms

This new charge may affect residual land values within the affected area. Buyers and sellers should factor this into pricing discussions, while also considering how the charge might shift negotiation dynamics and due diligence priorities.

Need to Reassess a Project or Transaction?
As trusted business and legal advisors, we are advising clients across Québec on how to identify and mitigate risks early, structure deals for long-term success, and ensure regulatory changes like this one are integrated into project strategies. If your project falls within the affected zones—or could in the future—do not hesitate to reach out to a member of our real estate team.