Officials didn't need Treasury Board approval to buy $9M New York apartment, committee told

The decisionto buy a new luxury apartment for the consulate general of Canada in New York, and to sell the old one, was made by officials at Global Affairs Canada (GAC), a committee of MPs heard Tuesday.

Samantha Tattersall, a senior official at the Treasury Board Secretariat, told the committeeher department only reviews the purchase of a residence for GAC if it exceeds $10 million.

Tattersall was appearing beforethe government operations and estimates committee to answer questions about the Liberal government's recent decision to buy the new condo at a cost of $6.63 million US, roughly $9 million Cdn.

"In the case of Global Affairs Canada (GAC), the department can acquire official residence property outside of Canada for an amount of up to $10 million Cdn," she said.

"This means that the property in question was acquired within GAC's authority. The Treasury Board did not review the transaction in question."

Last month, GAC said that it bought the new three bedroom unit to serve as the official residence for the consulate general of Canada in New York, a position currently held by veteran broadcaster Tom Clark.

Last week, the five bedroom apartment at 550 Park Avenue that had served as the official residence was put on the market for about $13 million Cdn.

Amlie Bouchard, the acting chief appraiser for the federal government's real estate services, told the committee that she could not reveal the government's independent, third-party appraisal ofthe Park Avenue apartment now that it is on the market.

Bouchard said she also could not state whether the government's independent appraisalmatches its $13 million list price because releasing that information could undermine efforts to sell the apartment. MPs on the committee will be viewing the appraisal but will not be permitted to reveal its contents.

How the old and new residences compare

When asked to explain the differences between the two apartments, Bouchard said the Park Avenue residence is bigger. She also said it's on the 12th floor of a 17 storey residential building in New York's upper east side,an area "considered quite desirable to live in."

Bouchard said the old residence also had a better view than the new apartmentat 111 West 57th Street. The new residence, Bouchard said, ison the 11th floor, which is the first non-commercial floor in the tower.

A listing on the real estate website Zillow.com posted in the last weekadvertises a five bedroom luxury apartment on the 12th floor of 550 ParkAvenue for $9.5 million US, about $13 million Cdn.

The website only advertises one other listing in the building: a four bedroom residence on the third floor being offered for $7.75 million US, about $10.5 million Cdn, that has been listed for about four months.

The $10 million limit at GAC

Tattersall told the committee that the $10 million limit applies to GAC specifically and is based on the department's unique requirements.

She said that limit is reviewed regularly and increased when required. The $10 million limit was set in 2022. The previous limit, set in 2006, was $4 million.

Tattersall said that regardless of the value of a real estate purchase,GAC is responsible for setting the requirements for the property and justifying the purchase.

She said GAC is also responsible for conducting a full lifecycle analysis of the costs of the new asset and making a business case for purchasing the property.

When it bought the new residence, GAC said the oldPark Avenue apartment, which was purchased in 1961, had been refurbished last in 1982 and was in need of an update.

The department said modernizing the old apartment to meet current standards and needs would have cost $2.6 million.

The committee resumes hearings Wednesday, when officials from GAC are expected to appear to answer questions from MPs.