Montreal entrepreneurs launch push for Defence Bank

The business community in Montreal is rallying to secure the headquarters of the Defence, Security and Resilience Bank (DSR Bank) in the city, with developers proposing a brand-new building to house the institution.

They say they hope the building will give the city an edge as it competes with Toronto, Vancouver and Ottawa to host the bank.

A consortium of three companies, including agency Sid Lee, has repurposed what was supposed to be a hotel tower in the city centre’s Place du Canada to accommodate the DSR Bank on several floors.

The cost is estimated at $200 million, and the project could be completed within 36 months.

In an interview with The Canadian Press published on Thursday, Sid Lee’s co-founder and architect, Martin Leblanc, explained that no one asked the developers to explore the DSR Bank scenario, but this was their way of contributing to Montreal’s bid.

The building’s original hotel project is already finalized with funding secured, but the group said they wanted to embark on the DSR Bank venture anyway.

“We want Montreal to stay in the running,” he said. “We’re going to give [Montreal] one more card to play.”

He called for public-private collaboration, particularly with the City of Montreal and Investissement Québec.

“This is a call for partnership. Let’s stop putting obstacles in each other’s way and forge links together,” he said, expressing his hope for better coordination and consistency between the federal, provincial and municipal levels.

The competition is heating up among Canadian cities to be the next home for a new international defence bank.

He says an international organization like the DSR Bank may be looking to settle down in a distinctive, modern, secure building in a good location, accessible by public transport – a “complete address” that offers not only accommodation but also a range of surrounding services.

The tower would rise above one of Montreal’s iconic landmarks, the Dominion Tavern, which would be incorporated into the project.

Leblanc also cited London as a source of inspiration, where financiers can round off their day at the pub.

Experts have stressed that Montreal may need to showcase all its strengths in what could be a close race.

Last April, at an international meeting in Montreal, representatives from 18 nations chose Canada to host the DSR Bank headquarters.

It is now up to the federal government to select the city.

Quebec Premier Christine Fréchette’s Coalition Avenir Québec (CAQ) government is lobbying for Montreal, while Ontario Premier Doug Ford’s government is also playing its cards.

Last May, it was revealed that Ontario-based developers were quietly touting Toronto’s stability, compared to potential threats to Quebec’s future if the Parti Québécois (PQ) forms a government in the October election and proposes a separatist referendum.

Fréchette argued that Montreal “needs this organization,” and the city has “expertise in finance, defence and the aerospace industry,” as well as a “multilingual” population.

A group of Quebec politicians are pitching Montreal as the ‘logical’ choice for the new multinational defence bank, despite referendum talk.

She made her case directly to Prime Minister Mark Carney, and “presented the strengths of Montreal’s bid” to French President Emmanuel Macron in Paris last May – a “key influencer,” in her view, though one who has refrained from wading into the debate on Canadian politics.

Fréchette has already mentioned that 3,000 potential jobs could be created with the bank’s possible arrival.

However, in an interview with Radio-Canada, Canada’s chief negotiator on the DSR Bank dossier, Isabelle Hudon, refused to confirm such a high number of jobs.

Leblanc, for his part, indicated that between 1,500 and 2,000 people could work in the premises his group has designed.

The Defence Bank would be an international defence financing mechanism, aimed at reducing borrowing costs for military expenditure.

It would meet a certain need, as many Western countries, including Canada, are increasing their military budgets and making massive investments.

“This funding will benefit member governments and defence sector companies, specifically small and medium-sized enterprises,” the federal government stated.

Furthermore, “the Defence, Security and Resilience Bank will also help strengthen collaboration with allies and like-minded partners on defence and security matters, and support member countries in their efforts to increase defence investment.”

In 2017, former Quebec premier Philippe Couillard’s Liberal (PLQ) government had sought to secure the headquarters of the Federal Infrastructure Bank in Montreal, but lost to Toronto.

At the time, the Coalition Avenir Québec (CAQ) denounced it as a “bitter defeat.”

–This report by La Presse Canadienne was translated by CityNews