Canada's consul general Tom Clark didn't influence choice of new NYC condo, official says

"The Consul General of Canada has not influenced the selection of the new New York apartment," the official said

Canada's Consul General in New York, Tom Clarke, has not influenced the government's decision to buy its new official residence, a senior official at Canada's Global Affairs Department told MPs on Wednesday.

"There was no influence from Mr. Clarke," said Stephen Cousineau, senior deputy assistant minister at Global Affairs Canada. He was not involved in the deliberation or decision-making process."

After it was revealed last month that Canada had purchased the new $9 million luxury property in the world's thinnest skyscraper on "Billionaires Street," opposition lawmakers were outraged by the appearance of the purchase, prompting several sit-ins in Ottawa.

Today, Cousineau told MPs considering the transfer of the official residence that the government was "very proud" of the deal, as the new apartment was "conveniently located" near key office buildings in the heart of the US "economic center". It was purchased at a discounted price.

However, GAC officials also tried to downplay the description of the apartment and its amenities, stating that the Canadian-purchased residence was "not in a skyscraper."

The consul general's new apartment is on the 11th floor of the 84-story tower, in the older part of the building known as Steinway Hall, but officials acknowledged that the residence has a preferred address in the same building.

Clarke is one of the witnesses MPs want to hear from about the decision, and while another hearing is scheduled for next week, it has yet to be confirmed whether the former journalist will appear.

Yesterday, Federal Real Estate Service and Treasury officials told representatives of the House Government Estimates and Operations Committee that they looked at 21 properties ranging in price from $8 million to $21 million before deciding on the new apartment.

Samantha Tattersall, a senior official in the Treasury's Office of Finance, said: "Yes, there is a concept of best value, but it is also an investment. There is a balance between the costs and goals of the program and the priorities of the government.

"An apartment that is more expensive but accessible, supports the government's greening goals, may be the best value...the least expensive is not always the best value."

Officials also revealed yesterday that Treasury Board or ministerial approval was not required before the offer was made, as the deal would have been subject to a $10 million federal transaction cap. The threshold was raised in 2022 after the government reviewed the average price of foreign residential purchases, MPs heard.

As well as shedding light on these aspects of the purchase, witnesses referred many questions from Conservative MPs about an "excessive" and "extraordinary" purchase to the GAC, prompting MPs to begin today's hearings with a long list of questions. .

Prior to today's meeting, the GAC had issued statements indicating that the move was necessary and cost-effective because the previous residence — purchased in 1961 and last renovated in 1982 — had long been in need of major repairs. It had to meet federal accessibility standards and be suitable for hosting influential guests.

By opting for a smaller but newer apartment, maintenance costs and property taxes will be lower in the long run, GAC said. Officials also noted that the view from the new apartment is not as good as the old apartment on the upper east side of the apartment.

The government also noted that by putting New York's old Park Avenue apartment up for sale and pricing it at $13 million — after an appraisal — it would more than cover the cost of the new apartment if the property sold at the asking price.

Without disclosing Canada's top appraiser's conclusions about the old property's value, MPs were told Wednesday that the GAC worked with an experienced real estate agent hired through a competitive process to price the apartment at a price that reflected its current condition. gives, to list.

However, as MPs explored during yesterday's hearings, until a wealthy buyer comes along, taxpayers are paying for Canada to own both Big Apple properties.

While these types of properties typically stay on the market for a month, the government could have done better with the timing of the sale of the older property if it was looking for the highest price, according to Manny Bennett, an Ottawa real estate agent and consultant.

"I think if they had waited for the market to stabilize and the economy to improve, I think they could have made more profit," he said. "Do I think it was a smart move on their part? Absolutely not. I think I would wait for spring and fall."

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