Government calls $9M condo purchase an ‘operational decision’

Foreign Affairs Minister Melanie Joly defends the purchase of a $9 million condo for the Consulate General of New York City at a parliamentary committee, as a necessary investment.

For an hour, the Liberal minister pushed back on accusations from Conservative members of the committee who accused the government of wasting taxpayer dollars on a luxury condo located on billionaire’s row in Manhattan.

“This was not a political decision, because it was an operational decision, and you had numerous people, officials of mine that came to see you and said that,” Joly said referring to previous testimony at the Standing Committee on Government Operations and Estimates.

In a number of combative exchanges, Conservative MP Michael Barrett accused current Consulate General of New York and former journalist Tom Clark of lying in his previous testimony to the committee where he said he was not involved in the decision to purchase the new residence.

“We know that he personally complained that his taxpayer-funded residence wasn’t up to his standards because it didn’t have a luxury kitchen or the perfect floor plan,” said Barrett, citing documents obtained by Politico Canada.

A 2023 study from Global Affairs Canada obtained by CTV News shows three months after being appointed, the Consulate General of Canada in New York City informed the organization which manages properties for the department that 550 Park Avenue “is not suitable for representational activities, and it is not suitable as a residence and requires immediate replacement.”

The report notes the current residence is not accessible for occupants and guests with disabilities. “The only accessible route into the building is via a back service alley into a service elevator via a back door entrance,” according to the May 2023 document.

Clark denied he had any role in the purchase of the new residence when he testified before the parliamentary committee in September.

“That was completely undertaken by the property bureau in Ottawa,” Clark said. “I was not involved in the selection of the new property, its amenities or its location.”

In July, Global Affairs Canada (GAC) confirmed the department had purchased a unit in the Steinway Tower located at 111 West 57th St. The condo will be used for “networking receptions, official briefings, and hospitality events such as discussions with business and political leaders,” wrote GAC spokesperson Jean-Pierre Godbout in an email.

According to the federal government, the current residence on Park Avenue in Manhattan was last renovated in 1982 and needed significant upgrades and repairs that were estimated to cost $2.6 million.

The public listing for that residence has a listing price of $13.1 million and government officials told the committee that the real estate agent handling the sale is happy with the way the file is unfolding. “He’s received 38 different inquiries, and he’s got like, eight showings from potential buyers, and he’s got, as well, many questions from the from other real estate agents that have gone there to visit it,” said Robin Dubeau, associate assistant deputy minister Real Property and Infrastructure Solutions (ACM) for Global Affairs Canada.

As Minister Joly underlined the importance of Canada having a presence in New York City, she said Afghanistan and Bangladesh are the only two countries that do not have a diplomatic mission on the island of Manhattan.

“We decided to make a key investment because we know that all countries of the world are in the U.S., and particularly in New York, and so we wanted to make sure that we were going through the right investments,” Joly told the committee.

The minister also noted other allies like the United Kingdom, New Zealand, France and Japan have invested tens of millions of dollars in new Manhattan residences for their diplomatic missions.

“We need to be there because our like-minded partners, the Five Eyes, and also the G7 are there,” said Joly.