House Committee Meeting Regarding Procurement of New York City Condominium for Consulate
Senior public servants have been summoned to a House of Commons committee to clarify the government’s decision to purchase a $9 million condo for the consul general in New York.
Conservative MP Michael Barrett criticized the residence as “excessive” and “opulent,” questioning why the procurement minister was not informed of the acquisition.
“Was this purchase flagged for the minister in light of the cost of living crisis facing Canadians?” he inquired.
Amelie Bouchard, acting chief appraiser of Canada, stated that she was the highest-ranking official in the Procurement Department to approve the purchase but emphasized her role was to appraise the property.
The government is in the process of selling its old Manhattan residence, listed at $13 million, a move anticipated to result in cost savings for the government, according to Global Affairs.
Other officials present at the meeting included two members of the real property services team in the Procurement Department, who frequently redirected inquiries to Global Affairs.
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Global Affairs was not present at the Tuesday meeting. Another committee meeting is set for Wednesday.
Samantha Tattersall, a senior Treasury Board official, explained that her department did not need to review the purchase since it was under $10 million. However, she noted that Treasury Board policies would dictate how Global Affairs arrived at their decision.
“This committee would likely want to know if Global Affairs conducted a full life-cycle cost analysis of the various options,” she remarked. “Did they consider retaining the old residence and upgrading it, or evaluating the total cost of acquiring something new through purchase or lease, and what were the findings of that analysis?”
The $10 million transaction cap was raised from $4 million in 2022 following a review of average purchase prices of foreign residences, officials disclosed.
Based on documents submitted to the committee last week, it appears that Canada may realize a profit from the sale of its old Manhattan residence.
The Park Avenue apartment was listed for sale at $13 million.
Global Affairs Canada had previously stated that the unit, purchased in 1961 and last renovated in 1982, required significant upgrades and was non-compliant with accessibility regulations. Additionally, there were issues regarding the separation between family and work spaces, as well as restrictions imposed by the cooperative board on hosting events on site.
Concerns about the Park Avenue apartment were initially raised in 2014. Seven years later, Global Affairs sanctioned $1.8 million in renovations, which were delayed due to the COVID-19 pandemic.
Recent examinations uncovered additional problems, with documents presented to the committee indicating that the renovation costs had escalated to $2.6 million and were not expected to resolve fundamental issues with the apartment.
The government collaborated with a local broker in the acquisition process, viewing 21 residences ranging from $8 million to $21 million, ultimately selecting a luxury condo in Steinway Tower near Central Park in the region commonly known as Billionaires’ Row.
The new residence will be occupied by former journalist Tom Clark, appointed consul general in February 2023. Global Affairs affirmed that the new residence will result in significant cost savings for Canadian taxpayers, reducing maintenance expenses and property taxes.
