The decision to buy a new luxury apartment for the Canadian Consulate General in New York and sell the old one was made by officials at Foreign Affairs and Commissionerate of Canada (GAC), a committee of parliamentary representatives heard on Tuesday.
Samantha Tattersall, a senior official in the Treasury Board Secretariat, told the committee the department would only review GAC home purchases if they were over $10 million.
Tattersall was appearing before the Government Operations and Budget Committee to answer questions about the Liberal government’s recent decision to purchase a new apartment complex for $6.63 million (about C$9 million).
“In the case of Foreign Affairs Canada (GAC), the department can acquire official real estate outside Canada up to the value of C$10 million,” she said.
“This means that the assets in question were acquired within the GAC’s purview. The Finance Committee did not review the transactions in question.”
Last month, GAC Bought a new 3 bedroom The unit serves as the official residence of the Canadian Consulate General in New York, a position currently held by veteran broadcaster Tom Clark.
Last week, the five-bedroom apartment at 550 Park Avenue that served as his official residence was demolished. Market Approximately 13 million Canadian dollars.
Amélie Bouchard, acting chief appraiser for the Federal Real Estate Service, told the committee that because the Park Avenue apartments are now for sale, the government cannot release the results of an independent, third-party appraisal.
Bouchard said he also couldn’t disclose whether the government’s independent appraisal agreed with the $13 million list price, for fear of compromising efforts to sell the apartments. Committee members have seen the appraisal but are not allowed to reveal its contents.
Comparison of old and new housing
When asked about the differences between the two apartments, Bouchard said the Park Avenue home is larger and is located on the 12th floor of a 17-story residential building on New York’s Upper East Side, an area “considered a pretty nice place to live.”
Bouchard also said his old residence had a better view than his new apartment in Steinway Tower, at 111 West 57th Street. Bouchard said the new residence is on the 11th floor, the tower’s first non-commercial floor.
Listed on real estate website Zillow.com Posted last week A five-bedroom luxury apartment on the 12th floor of 550 Park Avenue is being advertised for $9.5 million (about C$13 million).
The website is just advertising Other properties in the building: A four-bedroom home on the third floor is for sale for $7.75 million (about $10.5 million CAD) and has been listed for about four months.
GAC’s $10 million limit
Tattersall told the committee the $10 million limit only applies to GAC and is based on the department’s own requirements.
He said the limit would be reviewed periodically and increased if necessary. The $10 million limit was set for 2022. The previous limit, set in 2006, was $4 million.
Mr Tattersall said regardless of the value of the property purchase, GAC was responsible for setting requirements for the property and justifying the purchase.
She said GAC is also responsible for conducting a full life cycle analysis of the cost of the new asset and developing a business plan for purchasing the asset.
GAC said when it bought the new home, the old Park Avenue apartments, purchased in 1961, had last been renovated in 1982 and were in need of updating.
The department said it would modernise the old apartments to current standards and needs. It will cost $2.6 million.
The committee will resume hearings on Wednesday, with GAC officials due to appear to answer lawmakers’ questions.
