The decision of the Canadian Consul General in New York, Tom Clarke, to purchase a new government building did not have any impact on the Canadian Global Affairs, a senior official said on Wednesday.
Stephen Cousineau, Assistant Deputy Minister of Canadian Global Affairs, stated, „Mr. Clarke had no impact. He was not involved in advising or decision-making process.“
Last month, after purchasing a new $9 million luxury real estate property inside the world’s tallest thin skyscraper, the „Billionaires‘ Row“ in New York, opposition MPs raised objections and initiated multiple hearings on the optics of the purchase.
However, Cousineau defended the government’s decision to purchase the new government building, stating that it was a matter of „great pride.“ He explained that the new Consulate is strategically located near the center of America’s „economic hub“ and was acquired at a discounted price.
Despite efforts by GAC officials to downplay the features and amenities of the Condo, stating that the building purchased by Canada is not a „high-rise,“ the new Consulate General Condo is located on the 11th floor of an 84-story tower, known as the Steinway Hall.
NDP MP Taylor Bachrach commented, „It seems like things are getting a bit disjointed,“ as he questioned whether GAC considered the risks of locating a consulate in a high-rise building. He referred to the controversial history of building construction.
„We were focused on stewardship and value for money. We were looking at the Steinway Hall… that information is now being shared. I was not aware,“ Cousineau said.
Regarding Clarke’s involvement in the investigation, Conservative MP Michael Barrett had asked the Deputy Consul General in New York if his colleague had provided input on the suitability of his residence’s location.
Robert MacKinnon, a committee member, stated, „Mr. Clarke did not provide me with his opinion on the current building layout.“
„Have you considered any alternative locations for your current residence?“ Barrett continued.
„Mr. Clarke was not aware of any alternative locations and was not part of any alternative analysis process,“ MacKinnon responded.
Clarke remains available to hear from witnesses on the decision and whether former journalists will be present at the upcoming hearing next week is still uncertain.
Yesterday, Federal real estate and Treasury officials informed the House Estimates and Government Operations Committee that they had examined 21 properties ranging from $8 million to $21 million before making the decision to purchase the new Condo.
„While the best value concept remains, this is an investment. There is a balance between cost and purpose and the government’s priorities,“ said Samantha Tattersall, a senior official at the Treasury Board.
Officials also revealed that no ministerial or Treasury Board approval was required before submitting an offer as it was below the $10 million federal threshold for transactions. After reviewing the average purchase price of foreign government properties, MPs were informed that this threshold was increased from $4 million to $21 million in 2022.
Apart from shedding light on the purchase aspects, witnesses mentioned that GAC was „overly“ and „ostentatiously“ involved in the purchase, raising many questions and providing a long list of questions during Wednesday’s hearing.
As the discussion turned to the modern amenities of the new Condo, Conservative MP Larry Brock questioned why there was no „consideration of our local Lions or The Brick for a purchase“ as he listed the prices of various appliances.
Cousineau said, „I don’t want to speculate on how long it might take to sell the unit. It depends on market conditions,“ in response to Brock’s query.
Auto real estate broker and agent Marnie Bennett stated that while such properties tend to stay on the market for a month, the government could get a better listing for the old property if they find the best price.
„I think if they wait for market stability and economic improvement, I think they could make more profit,“ she said. „Do I think it was a smart decision from their side? Not at all. I think they were waiting for spring and summer.“
Once everything is resolved, the government’s approximate plan is for the new Condo to serve as the official government building for the Consul General in the future.
„There is no indication that we are about to get relief from it soon. So I would say it will provide its necessary life presentation, which is estimated to be around 55 to 60 years,“ said Robin Dubeau, a senior property and management official at GAC’s Infrastructure Division.