Athletes village may cost taxpayers $1B
 

Vancouver taxpayers are on the hook for the $1-billion Olympic athletes village project, says Mayor Gregor Robertson.

The project could come to a halt in February, unless the city doesn't continue paying construction bills and negotiations with Fortress Investment Group, a Wall Street lender, fall apart.

"The Olympic Village is a billion-dollar project and the city's on the hook for all of it," a sombre Roberston told reporters. "To my great frustration, we can't turn back the clock on the actions of the last mayor and council. We are financially and legally committed to complete this project."

Robertson said there could be a "significant loss" to the people of Vancouver.

City officials held an off-the-record, "technical briefing" for reporters in the basement of city hall Friday afternoon.

In it, they outlined how the city had got itself into a deal that left taxpayers liable for the total $1.075-billion tab.

Construction costs spiralled by $125 million from $750 million to $875 million.

According to documents:

• In 2002 the city signed a multi-party agreement committing to build the village in return for $30 million from Vancouver 2010 organizers.

• In 2006 developer Millennium Properties Ltd., agreed to buy and develop the southeast False Creek land for $200 million and paid a $29-million deposit.

• In 2007 Millennium arranged financing of $750 million with Fortress. In return, the city gave Fortress a $190-million financial guaratee and a completion guarantee.

• Between May and August 2008, Fortress decided the loan was "out of balance" due to cost overruns.

• On Sept. 15, Fortress said it was paying its last construction bill and would advance no further funding under the current deal.

• On. Oct. 14 city council authorized up to $100 million to pay three construction bills, on Oct. 15, Nov. 15 and Dec. 15, which totalled $79 million.

• On Jan. 15, the remaining $21 million will be paid for construction.

They said the deal with Millennium was an "unusual arrangement," as the city retains title to the land until the developer clears it's financial commitments.

The city is legally bound to complete the village

According to officials, Fortress has paid $317 million towards construction so far and a further $458 million is needed to complete the project.

If talks break down and Millennium pulls out, the city would be responsible for the total in order to meet its commitment to build athlete housing for the 2010 Olympics.

Robertson said that Vancouver is determined to finish the 1,100-unit waterfront project, which will house 2,800 athletes and officials.

"We know we've been dealt a very tough hand but I believe we can meet our obligations," he said. "The decisions taken by the previous city government have put the city at enormous financial risk. We will meet this challenge and we will excel as proud hosts to the world's greatest athletes."

He said that signing a completion agreement to Fortress, effectively made the city the project developer.

Robertson said "urgent and delicate" negotiations are ongoing

In the mean time, about one third of the units have been sold and the money is being held in trust.

"We should see great returns," he added. "It's a beautiful piece of land in a great city."

Vancouver 2010 construction boss Dan Doyle said Olympic organizers have "full confidence" the city will fulfill its commitment to deliver the village on schedule.

"We fully support Mayor Robertson, city council and the city administration in their efforts to responsibly manage the construction and long term legacy and viability of this key venue in an extremely challenging economic environment," added Doyle. "The City of Vancouver has been in constant contact with us on this venue and the current situation in particular and we have offered our assistance should it be helpful in their deliberations and decisions going forward."
http://www.theprovince.com/Sports/At...142/story.html

This is almost entirely Millenium's fault.

Robertson needs to STFU.

Really? I think he handled it well. Its nice to see an open transparent government. He openly admitted that its the taxpayers duty to pay for the site.

I never supported the winter Olympic so does that mean I don't have to pay for it? I rater see my tax dollars being put to fix roads.

if a chunk of millennium waters wasn't used for subsidized housing for low income families, maybe they wouldn't be in debt as much.

But it really shouldn't be, it should be Millenium's but they have totally BOTCHED it by cost overruns.

http://i78.photobucket.com/albums/j1...eR/dr_evil.jpg

1 BILLION DOLLARS....

In another few weeks I'll be transferring over to a couple of the towers, so I'll have a better first hand idea, but from what I've heard from other tradesmen, the job is a giant clusterfuck of incompetence. No big surprise then that there are going to be overruns. Word is that they are going to be pushing for 7 days a week and long hours, which always brings production to a massive slowdown as people burn out and eat each other alive trying to get finished.

Vancouver will be fucked financially for many years after the Olympics are done. Look at what Montreal had to put up with the Olympic stadium.

wow, that's a lot of money

Now the question is, how many ways they can get this money out of us.

the place will cost 1 billion to build.... the city now owns a huge housing complex. all of which will be sold off after the olympics... and by then house prices will probably be on the way up.

the city isn't stuck with a billion dollar permanent debt, they are stuck with a 2 year loan... after which they might even make it all back, or even profit from.

good ol canada
gotta spend money on useless shit

Is there a reason anyone can explain why a bunch of athletes need to have brand new top-of-the-line personal luxury apartments for the TWO fucking weeks that they are here?

Everything about the Olympics is total bullshit. If it ceased to exist, nothing would change in the world.

seriously, ANYONE who thought we wouldn't be paying for this for years to come is a moron.

nothing I didn't expect.

And if you think the Olympics is a waste of time for us... think again. even though it will cost us $$, it will help the local economy and tourism industry a ton.

This post makes absolutely no sense.

How does this even relate to the topic at hand?

Canada vs. Vancouver Olympics.. Hmmm I can see howe Vancouver is apart of Canada but how can you justify comparing a nation to a city for a seasonal event?

Lol, just like all the other countries that have hosted the olympics... :rolleyes:

Of course it is going to cost that much, have you been watching this project at all? They did so much work that ever 10 years ago I would have guess about 700 million.

The olympics are a good thing and I don't care what you all have to say, yes, it costs a boat load of money but I am pretty sure the sea-2-sky would not have been done, the airport to downtown line would not have been done and many other projects would not be done. Its a long time coming and for god sakes vancouver needs more public transit.

what are they building, misc bulidings arenas and such

In the lower mainland, the Convention Center, speedskating oval, curling rink, skytrain line, and they are revamping BC Place.

Lots of stuff in Whistler too.

The oval and the curling rink are probably going to struggle to make a return on the investment, but everything else is pretty decent in terms of utility.

And if you think this is a lot of stuff, wait and see what gets done under the stimulus packages the governments will be handing out soon to try to kickstart the economy.

They are using 1 billion to build a village on False Creek...

bingo!

after they sell away the apartments, are they going to give all vacouverites a $100 cheque each? Cause i'm DOWN!

they try to market these Olympics as Canada Olympics, by getting people across Canada to give ideas on a stupid logo. In the end we get a fucking logo that doesn't even represent anything Vancouver or Whistler has to offer. These Olympics should be funded by Canada as an entire Country, or fucking change the stupid logo!