The testimony from GAC officials did not convince the Conservatives who have been blasting the government for acquiring the piece of real estate
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OTTAWA — Global Affairs Canada officials claimed that the recently purchased luxury condo for Canada’s consul general in New York Tom Clark represents “significant financial savings” in the long run and that they are “very proud” of this transaction.
They also said that Clark did not influence the government’s decision to purchase the piece of real estate, and that the final choice came down to cost effectiveness.
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Stéphane Cousineau, a senior assistant deputy minister, told a House of Commons committee on Wednesday that the new official residence, purchased at the cost of $9 million, would in fact represent up to $7.4 million in savings for taxpayers.
“The replacement of the official residents in New York was carefully planned and executed,” he said. “An aging asset is being replaced with a well located, smaller and more cost-effective property, positioning Canada to meet both current and future needs.”
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Cousineau said that the former residence is now listed on the market for over $13 million — $3.9 million higher than what was paid for the new residence. He also said the purchase meant avoiding $2.6 million in renovation costs and $115,000 in annual operational fees.
The testimony from GAC officials did not convince the Conservatives who have been blasting the government for acquiring a new luxury condo for Clark, a former broadcaster, who they claim is Prime Minister Justin Trudeau’s “buddy.”
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Clark acted as a moderator for the Conservative Party of Canada’s first official debate in English, which featured paddles and sad trombones, during its most recent leadership contest.
Conservative MP Garnett Genuis said it is “disingenuous” on the part of the officials to project cost savings based on a comparison of purchase price of the new residence, which sold at a lower price than initially asked, and the asking price of the former residence.
“That’s clearly an apples-to-oranges comparison, maybe more precisely, an apples-to-magic-apples comparison,” he said.
Genuis added that his research team looked at other properties being sold at the address of the former residence on Park Avenue, and that all of them had been sold “substantially below asking price if they were sold at all.” In other cases, they were taken off the market.
Robin Dubeau, an acting associate assistant deputy minister, said that the imperative to move was based not only on the need to refurbish and renovate the residence but on the restrictions applied by the board of the homeowners’ association in hosting events.
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The consul general’s residence in New York is typically used not only as a living space, but an area to hold diplomatic events and business meetings. Officials said that over the past two years more than 50 official functions have been hosted at the residence.
Cousineau explained that over the last few years, members of the board changed, rules became “more strict” and “things became more delicate.”
Dubeau also said that the former residence was not compliant with the Accessible Canada Act which aims to make all federal buildings accessible to people with disabilities by 2040 and hinted that the proposed renovations would not have met all its requirements.
That is why officials started their cost benefit analysis in 2023 to look at either renovating the former unit, replacing it with a leased asset or with a Crown-owned asset. They opted for the third option, which they said was more beneficial cost-wise in the long term.
“It all came down to cost at the end of the day,” said Dubeau.
Officials said the department worked with a local broker and viewed 21 different residences before settling on a recently renovated condo in the heritage building that is attached to Steinway Tower, a building known as the world’s thinnest skyscraper.
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They said that the building was one of the cheapest on the list that was available per square metre, and that the Midtown district was more affordable than Park Avenue.
Conservative MP Kelly Block asked the officials if GAC considered the purchase of a residence away from Manhattan Island, in a more “cost-effective neighbourhood.”
“All of the G7 and G20 countries have either an office or an official residence on Manhattan Island, and it made sense, from a program perspective, for proximity, to be located in the same area,” said Dubeau.
Cousineau added that other countries have purchased much more expensive residences. The United Kingdom, notably, acquired a residence for $21.5 million in 2019 and Italy bought a townhouse for $35 million near the end of 2022.
“I would say that we’re one of the lowest, if it’s not the lowest, cost of purchase when we compare it relatively to other countries,” said Cousineau.
The third and last committee meeting on the issue is set to take place next Tuesday, but the witnesses have not yet been confirmed.
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