Officials didn't need Treasury Board approval to buy $9M New York apartment, committee told
CBC
The decision to 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 committee her department only reviews the purchase of a residence for GAC if it exceeds $10 million.
Tattersall was appearing before the 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.
Amélie 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 of the Park Avenue apartment now that it is on the market.
Bouchard said she also could not state whether the government's independent appraisal matches 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.
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 apartment in Steinway Tower at 111 West 57th Street. The new residence, Bouchard said, is on 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 week advertises a five bedroom luxury apartment on the 12th floor of 550 Park Avenue 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.
Tattersall told the committee that the $10 million limit applies to GAC specifically and is based on the department's unique requirements.
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