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

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 24 Sussex:

• 24 Sussex remains the only official residence in critical condition
• In its role as steward of Canada’s Official Residences, the NCC has conducted a number of studies, including a preliminary functional requirements study for the Prime Minister’s Official Residence
• This study was drafted based on input from various federal partners and previous occupants
• The purpose of the study was to support the development of a spatial program suitable for Canada’s prime minister, helping us determine future options for this official residence

If pressed on Harrington Lake:

• The National Capital Commission’s work at Harrington Lake was part of a broader program to preserve, maintain, and restore all official residences under NCC management
• As detailed in the 2018 Asset Portfolio Condition Report released by the NCC, the Harrington Lake main cottage was one of 2 main residences deemed to be in “critical” condition; the other being 24 Sussex
• The NCC completed works at Harrington Lake in December 2020 with an overall cost of $5.8 million, which is less than the original budget of $6.1 million
• As an independent Crown corporation led by its Board of Directors, the NCC plans, initiates, and implements the works and investments related to the Official Residences to ensure their continued operation and to safeguard their national heritage

If pressed on Stornoway:

• The National Capital Commission works in close collaboration with the offices of each future resident of an Official Residence - including Leaders of the Official Opposition destined to live at Stornoway - to determine the timing and logistical details of their move, including required updates to the residence
• During transitions, typical moving tasks are performed to ensure the residence is clean and appropriately furnished so that occupants can feel at home and are able to execute their official duties as soon as they move in
• Moving costs are not associated with the occupant’s personal belongings
• 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 the Official Residences to ensure the residence’s continued operation and to safeguard its national heritage

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 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 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 highlights the shortfall in funding required to restore and maintain the heritage buildings in this asset portfolio. Since the 2018 report, the NCC has invested approximately $26 million 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 $17.5 million per year, over 10 years—for a total of $175 million—is needed to close the deferred maintenance gap. In addition to this sum, the report identifies a need for $26.1 million 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.

Recent government budget investments in the NCC were not targeted towards assets in the Official Residences portfolio. Canada’s official residences remain in dire need of rehabilitation.

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, such as asbestos, from the main building. However, the corporation has not been able to proceed with the extensive rehabilitation of the residence and has been limited to completing repairs that were urgently required for health and safety.

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 its 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 four secondary buildings, asbestos testing, and other life cycle evaluations. This includes a preliminary functional requirements study for the Prime Minister’s Official Residence. Drafted based on input from various federal partners as well as several previous occupants, the study supports the development of a thorough and appropriate functional program, which will act as a guide in the planning and design of potential future solutions for the official residence of Canada’s Prime Minister. The purpose of the study was to determine the spatial requirements suitable to address both the governmental and personal functions of Canada’s Prime Minister. Later stages may address issues of site or design.

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 Royal Canadian Mounted Police (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 coordinated in collaboration 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” federal 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.

Harrington Lake

While the Main Cottage at Harrington Lake is 95 years old, most of the buildings were built between 1850 and 1925. Harrington Lake, the official country residence of the Prime Minister, is used for both official and private functions, with buildings that can accommodate official business as well as state visits. The Harrington Lake property was deemed to be in “critical” condition in the NCC’s Official Residences of Canada: 2018 Asset Portfolio Condition Report.

As part of a broader long-term program to preserve, maintain and restore all the official residences under NCC management, the NCC allocated $8.6 million to rehabilitate the Harrington Lake property. This project improved the condition of the Farmhouse (formerly known as the Caretaker’s cottage) from “critical” to “good”, and the condition of the Main Cottage, from “critical” to “fair”, and it was completed under budget.

The Farmhouse, built in 1850, was dismantled, relocated and rebuilt on a larger footprint close to the Main Cottage to improve its practicality and use. This $2.5-million rehabilitation project began in the fall of 2018 and was completed in June 2019. The investment in the Farmhouse has provided the site with a more functional, environmentally-friendly building. The renovated building features full universal accessibility on the main floor, and offers more useable space for family rooms, studies, offices, meeting areas, official state functions, and use by the RCMP and foreign dignitaries’ security details. Prior to this work, the building had been closed since 2008 due to health and safety concerns; it was in need of complete rehabilitation to prevent its collapse.

The rehabilitation work at the Main Cottage involved maintenance and life cycle renewal to stabilize key systems and building elements to simplify ongoing maintenance, and to reduce insect infiltration. Some examples of the work include repairing wall framing; installing insulation and weatherproofing; installing modern systems for hot water, heating and ventilation; rehabilitating the fire suppression system; replacing exterior doors; repairing masonry and the foundations; and dismantling and rebuilding two heritage chimneys. This project began in the fall of 2019 and was substantially completed in December 2020. The overall cost of $5.792 million was under the initial $6.1 million budget. This investment falls short of addressing all of the required renovations at Harrington Lake and does not include modern building improvements such as universal accessibility and environment sustainability.

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