If, say, Menkes was the successful bidder and as part of their response to the RFP "we have readily available space at 5570 Explorer Drive that has recently been vacated by an international retailer with stores province wide. We will lease that to the LCBO for $10 psf less than currently available downtown rents"...should that be dismissed out of hand?
Yes. Why should the LCBO go against the trend of moving office space downtown? If my company were moved to a suburb that required me to buy a car to get there, I would look for a new job. I am 29, and know many, many others in my age range (say 25 to 35) who would do the same. Moving from a suburb to downtown makes some people's commutes much more difficult; but moving from downtown to a suburb can make commutes impossible for those without a car. It would be equivalent to a $6,000 to $10,000 annual pay-cut to force an employee to buy a car.
This is particularly a bad decision because the growing car-free demographic tend to be the younger employees, and therefore those you wish to attract/keep to ensure the future vitality of an organization such as the LCBO.
The cost savings of moving to a suburb could easily be eclipsed by lost efficiency & the cost of hiring new employees.