The University of Calgary is spending $8.1 million on renovating offices for its top leadership, despite an internal report that warned “large expenditures” on space for executives would likely be criticized.

City permits to start the work were not issued until nearly two weeks after the province cut the school’s annual operating and capital maintenance grants by $38 million.

But administration officials forged ahead last March with the upgrades — including vice-president offices 20 per cent larger than the maximum stipulated by U of C’s design standards — because they were necessary to “appropriately reflect the university’s status and image.”

Bob Ellard, vice-president of facilities, said the decision to proceed was reviewed in the wake of the 7.3 per cent cut in government grants last March.

“We looked at it several times very critically and the conclusion was we could afford to do it, it needed to be done and we did it,” Ellard said.

“I get that people would question the priorities, because if you’re a student or a faculty member ... or a staff person, your list of priorities would be different.”

While the U of C had run large surpluses in each of the last two years, the university’s faculty association is upset by the spending and how it was quietly approved.

Association president Paul Rogers said it’s odd that executives found money midway through 2012-13 to renovate their offices, but when the capital budget was agreed on at the outset of the fiscal year they were only able to fund a third of the upgrades to aging classrooms and were unable knock down a deferred maintenance liability that was then mounting close to $400 million.

“The most troubling thing is how over $8 million could be allocated to this when there are other pressing academic priorities,” association president Paul Rogers said.

“How this contributes to our research and teaching missions is really beyond me.”

Ellard said the approval process was “not abnormal” and about $3.5 million of the cost is to pay for much-needed mechanical upgrades to the 1960s-era administration building.

But he said the remaining $4.6 million is for offices, meeting rooms and furniture in a 20,000 square-foot space at 539 Campus Place N.W. that will house U of C president Elizabeth Cannon, five vice-presidents, the board of governors and university chancellor, school lawyers and their assorted underlings.

The centrepiece is a reception area with a solid ash countertop and a $150,000-plus staircase of concrete, wood and aluminum that will allow executives to travel between floors without having to leave their area and use a nearby public stairwell.

Ellard said the renovations will upgrade “antiquated” offices that hadn’t had “significant” work in the five years he has been in his position.

“This is respectable space, it’s nice space, (but) it’s not over the top,” he said.

“We’re certainly not out on a limb, doing something stupid.”

Blueprints filed with the city show Cannon’s personal office is now over 400 square feet.