Question Period Note: Maison Radio-Canada project in Montréal
About
- Reference number:
- PCH-2019-QP-0021
- Date received:
- Nov 21, 2019
- Organization:
- Canadian Heritage
- Name of Minister:
- Guilbeault, Steven (Hon.)
- Title of Minister:
- Minister of Canadian Heritage
Issue/Question:
In response to recent reporting on the Maison de Radio-Canada project by TVA and Le Journal de Montréal, CBC has confirmed that it will release all the costs related to the new Maison de Radio-Canada when the project is completed, that the new building will be delivered on time on December 31, 2019 and that no additional funding has been requested from the government for the MRC project.
Suggested Response:
• The Canadian Broadcasting Corporation will release all the costs related to the new Maison Radio-Canada when the project is completed.
• The Canadian Broadcasting Corporation is an autonomous Crown corporation responsible for managing its daily operations and its facilities, including la Maison Radio Canada in Montréal.
Background:
• The Maison Radio-Canada (MRC) site in Montréal no longer meets the needs of the CBC, the requirements of a multiplatform and digital media environment, and the expectations of the creative community.
• The tower, built between 1964 and 1971, suffers from water leakage problems and required major renovations estimated at 170 million dollars. It has 23 floors, including multifunctional offices and media production facilities, of which two-thirds are underground spaces, totalling 1,300,000 square feet.
• In April 2017, the Governor in Council (GIC) authorised CBC to enter into an agreement with Broccolini for the construction project of the new MRC and to rent the new premises for a 30-year period. As well, the GIC authorised the CBC to enter into an agreement with Groupe Mach for the sale of the existing facilities and the west part of the land.
• On October 1, 2017, the Minister of Canadian Heritage participated in a ground-breaking ceremony for the new MRC.
• Since the GIC approval for the project was granted in April 2017, the existing MRC has been sold (July 2017) and construction has started on the new building (fall 2017). Construction is progressing and occupation is planned for 2020.
• On April 25, 2019, the CBC gave the media a tour of the new MRC site, to provide an update on the status of the project. Of note, CBC will be paying rent of $21 million per year in the new facility (400,000 square feet) for the next 30 years - the same amount it was paying to maintain the current building. By selling to existing MRC, the CBC was able to divest itself of a $171 million accrued maintenance deficit, in a facility which has been deemed too large for its needs.
• Equally important, the CBC will also benefit from relocating to a new building which provides access to modern, digital, multiplatform facilities, with no additional investment from the Government of Canada, while transferring the risks inherent in managing real estate assets to the building owner.
• With respect to Access to Information requests submitted to CBC by Le Journal de Montréal on the MRC project, the CBC advises that it has provided a significant amount of information in response. With respect to information on costs related to the technological infrastructure and fit-up of its production facilities, it has applied exemptions under Section 18 (Economic Interests) and Section 21 (Advice and Recommendations). Any questions on the construction costs of the new MRC should be directed to Broccolini.
• On September 17, 2019, CBC issued a release in response to recent reporting on the MRC project by TVA and Le Journal de Montréal. The release confirmed that CBC will release all the costs related to the new MRC when the project is completed. It also noted that the new building will be delivered on time on December 31, 2019 and that no additional funding has been requested from the government for the MRC project.
Additional Information:
None