Question Period Note: Rehabilitation of the National Capital Commission assets including 24 Sussex, Rideau Hall, and Stornoway

The Official Residences of Canada: 2021 Asset Portfolio Condition Report was released by the National Capital Commission (NCC) on June 23, 2021, and identified a requirement for a one-time injection of $175 million over 10 years to address the deferred maintenance deficit for all 6 official residences.

• The National Capital Commission is an independent Crown Corporation and is responsible for year-round maintenance and operations for the 6 official residences in Canada’s National Capital Region
  • Both the National Capital Commission and the Government of Canada recognize the importance of the official residences and their heritage and cultural value
  • The National Capital Commission is committed to full transparency and reports annually on capital expenditures incurred at the official residences

If pressed on the National Capital Commission’s Asset Portfolio Condition Report:

• The National Capital Commission released this report in June 2021 to remain transparent and open with the Canadian public and it remains committed to working with its partners to ensure that issues related to security, heritage preservation, sustainability, and accessibility are addressed
• The 2021 report found that overall the overall condition of the Portfolio continues to deteriorate with only 24% of the assets considered to be in “GOOD” condition, down from 34% in 2018
• Of the six main official residences, four are in “FAIR” condition (Rideau Hall, Harrington Lake, Stornoway, 7 Rideau Gate), and the Farm is in “POOR” condition while 24 Sussex is the only official residence that remains in “CRITICAL” condition

If pressed on Rideau Hall:

• All National Capital Commission projects that are planned or underway at an official residence are important to ensure the residence’s continued operation and to safeguard its national heritage
• As an independent Crown corporation led by its Board of Directors, the National Capital Commission plans, initiates and implements the works and investments related to Rideau Hall
• The National Capital Commission works in close collaboration with the Office of the Secretary to the Governor General to ensure the effective implementation of planned projects

Official Residences of Canada Asset Portfolio Condition Report

In 2017, the NCC commissioned in-depth building condition reports for the largest and most complex buildings in the official residences portfolio. These reports, made public in 2018, found that 58% of the assets in the official residences portfolio were considered to be in ‘poor’ to ‘critical’ condition, including half of the main residences. This analysis was refreshed in 2021 using the same methodology. The findings are laid out in the Official Residences of Canada: 2021 Asset Portfolio Condition Report, which details the current state of all six official residences and their ancillary buildings under the stewardship of the National Capital Commission. The latest findings confirm that the overall condition of the Portfolio continues to deteriorate with only 24% of the assets considered to be in “GOOD” condition, down from 34% in 2018. The report was presented to the NCC’s Board of Directors on June 23, 2021, and subsequently published on the NCC’s website.

The report reflects an in-depth analysis of the official residences asset portfolio and highlights the shortfall in funding required to restore and maintain these heritage buildings. Since the 2018 report, the NCC has invested approximately $26M in capital funding on rehabilitation work. Despite these investments, the cost of addressing the portfolio’s deferred maintenance deficit has increased and it is now estimated that a one-time injection of $17.5M per year, over 10 years—for a total of $175M—is needed to close the deferred maintenance gap. In addition to this sum, the report identifies a need for $26.1M in annual funding to cover ongoing maintenance, repair and renovation costs. The report notes that should the NCC’s Official Residences asset portfolio continue to deteriorate, more of the official residences will come to resemble 24 Sussex.

24 Sussex

As detailed in the Official Residences of Canada – 2021 Asset Portfolio Condition Report, 24 Sussex Drive continues to be in “critical” condition.

Over the last decade, the NCC has completed some work at 24 Sussex including the rehabilitation of chimneys and fireplaces, fire compartmentalization, stabilization of the escarpment at the back and west sides of the property and the removal of hazardous materials, including asbestos, from the main building. However, it has not been able to proceed with the extensive rehabilitation of the residence and has been limited to completing work on the repairs relating to health and safety that were urgently required.

As 24 Sussex Drive has not seen significant investment in over 60 years, the additional work required would include the rehabilitation of the building envelope, replacement of mechanical and electrical systems, and construction of universally accessible entrances and washrooms. All buildings on the site would require extensive recapitalization and the NCC would need prolonged access to the residence. The NCC is working with its federal partners to develop a plan for the future of 24 Sussex Drive and is ensuring that issues related to security, functionality, environmental sustainability, universal accessibility, design excellence and heritage preservation are taken into consideration in our preparations.

As part of its duties as steward of the Official Residences, the NCC is renewing various studies, including functional program options for the building, site surveys of the grounds, the main building and the 4 ancillary buildings, asbestos testing and other life cycle evaluations.

Rideau Hall

Since 1986 the buildings and grounds of Rideau Hall have been managed by the NCC, which is implementing a long-term rehabilitation project to ensure that the valuable heritage buildings on the estate remain in optimal condition.

The NCC assists the Office of the Secretary of the Governor General of Canada (OSGG) in delivering their program of work at Rideau Hall, recognizing that it is an official residence, a public destination, and a workplace for over 200 federal public servants, including employees of the OSGG and the NCC, the RCMP and other agencies.

Since 1988, development plans, supported by asset condition reports, for both the buildings and grounds have been completed and several upgrades have been made. The NCC also completes projects on behalf of the OSGG in support of its programming at Rideau Hall. Some projects undertaken at Rideau Hall fall outside NCC’s scope to furnish, maintain and rehabilitate the property. These are commissioned and paid for by the OSGG, including a recent feasibility study examining multimedia options for the Ballroom and installing an access control gate in the Monck Wing.

All NCC projects that are planned or underway at Rideau Hall are communicated with the OSGG in order to ensure effective implementation.

Overall, the Rideau Hall Main Residence was determined to be in “fair” condition in the NCC’s Official Residences of Canada: 2021 Asset Portfolio Condition Report.

Stornoway

Originally built in 1913 to 1914, Stornoway holds a “recognized” heritage designation. The Main Residence functions primarily as a private residence for the Leader of the Opposition and their family. It also hosts occasional official events. It is not open to the public. The property comprises 0.42 hectares of grounds, a Main Residence, and a garage.

Since 1988, development plans, supported by asset condition reports for both the

building and grounds, have been completed and several upgrades have been made. Currently, elements of the Main Residence that need to be upgraded or replaced include the building envelope, fire alarm, as well as the electrical and heating and cooling systems. Aspects of the residence also need to be renovated to permit universal accessibility. Overall, Stornoway was determined to be in “fair” condition in the NCC’s Official Residences of Canada: 2021 Asset Portfolio Condition Report.

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