Civil servants warned that renovating the old home of the Irish Ambassador in Washington DC would cost up to $14 million (€13 million) with “significant risks” this would not even be the final bill.
The mansion on S Street in the US capital was sold by the Department of Foreign Affairs for around $8 million in March after a series of inspections revealed it was no longer safe for use by diplomats, their families, or people attending official events.
A detailed business case for the sale explained how repeated fractures in water piping had led to “spontaneous leaks” with a risk of damage to electrical wiring in the 11,000 square foot property.
It said the rear façade of the house was stained and needed repainting and weatherproofing.
The report said the S Street property also required replacement of all finishes, paint, trim, flooring, carpeting, and ceiling tiles.
The business case explained: “Many flooring and carpeting materials have exceeded their useful life, while walls exhibit peeling paint and bubbling plaster.
“The ceiling tiles are stained due to previous leaks. The bathrooms also need updating, with several requiring tile and fixture replacements.”
In internal discussions last summer, the department said they were looking for a property that could host events for up to 500 people as well as dinners for 40 to 50 people.
It said universal accessibility would be needed, as well as a private entrance for the Ambassador, and some extra office space too.
Incredibly, the cost of the improvement works was estimated at $13.48 million, or nearly 70 per cent more than the property was worth and was therefore considered “uneconomical”.
The business case said: “The safety of departmental officials, their accompanying families, and guests is compromised by the property's current condition.
“Considering the property's drawbacks, it is evident that a disposal strategy is more prudent than attempting to overcome property condition issues.”
The department opted to finalise a move and paid $12.25 million for a 13,595 square foot nine-bedroom property on 30th Street, which it had already been renting for the Irish Ambassador to the United States.
In final discussions on the sale of the old S Street property, officials said they were worried about market conditions, economic uncertainty, and rising interest rates.
They said they expected the sale would take a year and that there was a risk of the property deteriorating in the meantime.
Around $4,700 was being spent each month on maintenance of the mansion even while it was empty, department records said.
The business case added: “While the embassy’s caretaker inspects S Street at least three times per week, it is widely recognised and accepted that vacant properties are vulnerable to deterioration and that minor issues can become major if unaddressed.
“The longer we leave the property unoccupied, which is necessary until the issues are addressed, the higher the risk of a major maintenance issue and associated cost.”
However, officials were optimistic of a sale saying former President Barack Obama lived “close by” and that another house on S Street had been bought by Amazon founder Jeff Bezos for $23 million.
In comments on the business case, one senior official wrote: “The professional advice estimated that the refurbishment costs would be significant (USD$13.8m) plus there would be significant risks with undertaking major refurbishment works on older buildings.”
A final note on the decision to sell up last July said: “Secretary General [has] approved. That the sale of the property is based on the assumption that we will be purchasing the current residence which is being rented.
“The final sale of the current property should be reviewed in light of the state of play on the purchase of the new residence.”
