The Journal de Montreal has learned that High-Rise Montreal (HRM), one of the project developers, as now indicated that they would rather pay the $6.5million dollar penalty than build the 175 social housing units.

To get their project accepted at the former Montreal Children’s Hospital, developers Devimco and HRM promised a community center, social housing for families and the construction of an elementary school.

For this, the City amended the zoning, authorized the demolition of the old hospital and issued a building permit to allow the construction of five condo towers.

Additionally, according to the JDM in 2016, the Quebec government sold the Montreal Children’s Hospital for $25 million to private developers, a price well below that of the municipal assessment.

CBC reported that last year Devimco said it couldn’t build an elementary school on the site because of delays by the provincial government and school board to provide plans.

Montreal Mayor Valérie Plante said she’s “not happy”, and reminded the developer that for their project to be acceptable for the boroughs … and population around, there has to be social and affordable housing.