The details here.

Tomorrow is the official announcement but I went down to the sales centre on Sunday, which was hopping. All kinds of people had driven down on a whim to take a look and then parked their cars once they found out they could tour the four presentation suites available. (In contrast to the picture I’m posting here of the sales centre, the gawkers were a very diverse crowd.)

Shierley Chelliah and her parents were scouting them out while I was there. They said they hadn’t even bothered checking the village before, because they thought the prices were too high for them. They — along with quite a few others I stopped and spoke to — had been enticed to take a look by news that units would be 30 per cent lower than before, on average, with some up to 50 per cent.

Those kinds of discounts weren’t in evidence with the four suites being shown off, though there were discounts of up to $350,000. That was on the two-bedroom that was previously $1.3 million. (Picture of the living room posted below.) A larger one bedroom (862 SF) was being listed at 599,900 instead of $695,000 and a smaller one-bedroom (812 SF, with a bedroom not large enough for a queen bed) was $539,000, down from $684,900.

For amateur presentation-suite hounds, the four units have all been decorated by different firms and are very lovely. Wouldn’t look like that if I moved in, is all I know.

Some realtors are disgruntled with the pre-launch activities, though. One called Jeff Lee at the Sun (his blog post and story here, with Mr. Rennie in full flight) and one called me.  Apparently Rennie Marketing invited down some people from the list of interested buyers they’ve been maintaining and gave them a chance to buy in advance on the weekend.

I’m told this is a practice in the development industry used to pre-test prices and make sure they’re pitched right to attract people. That’s what Rennie said he was doing, by getting 25 buyers committed in the four price categories they’re marketing.

But a few realtors were mad because they lost clients and commissions, as a result. The one who phoned me said that, although he’s used to that kind of thing on other developments, he thought a city-owned project would be more above-board.

Just goes to prove my theory that anything that happens at the village becomes news when it wouldn’t be news on another development.

That’s all the bits and pieces of news for today. I’d be interested to hear what people thinking of the prices and suites, if they visited already or visit tomorrow.

US embassy cables: Vancouver Winter Olympics feel economic chill
guardian.co.uk, Tuesday 21 December 2010 13.19 GMT
Thursday, 12 February 2009, 18:25
C O N F I D E N T I A L VANCOUVER 000031
STATE FOR DS/P/MECU, DS/DSS/DO, DS/IP/WHA
STATE FOR WHA/CAN
EO 12958 DECL: 2/11/2019
TAGS CA, PGOV, KOLY, ASEC, ECON
SUBJECT: VANCOUVER 2010 OLYMPICS FEELING THE ECONOMIC PINCH IN PREPARATIONS, SECURITY
CLASSIFIED BY: G. Kathleen Hill, Political/Economic Chief, US Consulate Vancouver, State. REASON: 1.4 (b), (d)
Summary
US diplomats discuss the financial strain the 2010 Winter Olympics put on its host city. It says there are signs the Vancouver security strategy is feeling the pinch of “economic and personnel shortages”, but the Canadians are “sensitive to the issues of sovereignty”. Key passages are highlighted in yellow
(U) Summary: The global economic crisis and modern demands of post 9/11 security are proving to be huge challenges for the organizers of the 2010 Winter Olympics in Vancouver. The competition and special events venues are complete and already hosting test events, but the financial crisis surrounding the Olympic Village has consumed local politicians and media (and was probably the determining factor in the recent Vancouver Mayoral election).
Finances are also looming large over the Games’ security. Original estimates of C$175 million have now ballooned to a figure somewhere between C$400 million and C$1 billion. While the Province and the Government of Canada (GOC) continue to negotiate who pays what, other costs, in the form of police and military resources, are beginning to be born across the region.
The impact may reach far beyond the Games, with significant reductions in policing activity and investigations nationwide. Because of the economic downturn, the Vancouver Olympics Committee (VANOC) has already announced modest changes to save money, but is still promising to stage spectacular Games – within available financial resources. End Summary.
Ready to Compete, But Not to Sleep
2. (U) Vancouver is set to host the Winter Olympics in February 2010. Optimism over the event remains strong, as evidenced by the recent phase one ticket sales for Canadians only, which sold out completely in just a few hours and left many subscribers with only a small portion of requested tickets.
However the global economic crisis is creating headaches not envisioned when the city bid and won the right to host the Games. Controversies abound over the “true” costs of the Games.
The Olympics were used by Vancouver and British Columbia to jump start planned but expensive infrastructure projects such as the C$600 million upgrade of the Sea-to-Sky Highway between Vancouver and Whistler and the new C$2 billion Canada Line rapid transit system. Critics like to lump these costs in with the more direct Olympics costs, emphasizing an overwhelming burden placed on the BC and Canadian taxpayer.
3. (U) Amidst the criticism, VANOC has shown remarkable financial astuteness, beginning serious revisions of the Games’ operating budget in spring 2008, well before the serious specter of a global financial crisis became evident.
All competition venues, one of the main areas of responsibility for VANOC, are completed or will be completed on time and within budget. VANOC recently announced a revision to the budget, increasing the final price tag on operating the Games by C$127 million to a total of C$1.76 billion.
According to VANOC’s Executive Vice President, David Guscott, the Organizing Committee has obtained enough corporate sponsorship and ticket and souvenir sales to bring it within sight of this budget, lacking only about C$30 million to reach its goal. But it has had to make sacrifices to keep on target, such as decreasing hiring and making changes in operational plans, including eliminating a nightly medal awards ceremony in downtown Whistler that has that community’s residents feeling betrayed.
Despite the financial challenges, VANOC’s revenue from ticket sales and corporate sponsorship remains on target and the organization appears weQ placed to meet its obligations.
4. (U) The same cannot be said for the C$700 million-plus Olympic Village, a key element of the Games and a major responsibility of the City of Vancouver. The Village is being developed by a private corporation on prime waterfront land provided by the city. It’s slated to become a mixed use residential/commercial area after the Games with high, middle and low-income housing.
The developer ran into problems in September, when more than C$100 million in cost overruns threatened to stop the project. Then Mayor Sam Sullivan and the City Council held a series of closed door meetings where they developed a plan for the city to provide guarantees so a loan could be obtained to cover the increases.
The secretiveness of the financial arrangements became a major factor in the December city elections, which saw Sullivan’s coalition lose the mayoral seat and all but one city council position. In addition, the controversy caused the city manager, a senior deputy and the chief financial officer to lose their jobs.
In December, just after the elections, the primary financial backer of the project, U.S. company Fortress Investment Group, announced it would not deliver the final C$458 million in capital to complete the project due to financial losses from the sub-prime mortgage crisis. The new mayor, Gregor Robertson, found himself in the same hot seat, dealing with the possible collapse of the project.
In the end, he sought, and was granted, special provincial legislative authority for the city to seek loans to cover completion of the project. Olympic critics have had a field day with the problems, promoting stories of taxpayer losses in the billions, and a combination of substantive factors led Moody’s and Standard & Poor to place the City of Vancouver on credit-watch status.
Real estate analysts have been more optimistic, asserting that the city could make a considerable profit on the deal down the road and highlighting the fact that it is the last undeveloped piece of waterfront property in downtown and very desirable. The city paid only C$50 million for the land through its Property Endowment Fund, a longterm investment fund estimated to be worth almost C$3 billion.
Even if the development makes only half of the originally estimated profit, the fund could cover the immediate loss without affecting the city operation’s budget and, as a longterm investment, it could still be a win for the city. VANOC’s Guscott was confident the city would meet its part of the deal, presenting a completed, functioning Village on time. In VANOC’s view the project has been caught in an unfortunate cross between municipal elections and the downturn in the economy, with the financial problems severely overblown.
Security – But at What Price?
5. (U) Perhaps the biggest loss will be taken by the province of British Columbia and the Government of Canada (GOC) which will bear the brunt of cost overruns in the security of the games. The Integrated Security Unit (ISU) was set up to manage the Games’ security. It is headed by the RCMP, with representative from all major police, intelligence and defense entities.
Original estimates on Olympics security were in the C$175 million range. But now no one is willing to give a number. The provincial Finance Minister, Colin Hansen, will only say it’s somewhere between C$400 million and C$1 billion. Hansen admits he was surprised at the estimates coming out of Ottawa for overall security.
A special committee was established early on to determine B.C.’s and the GOC’s shares of incremental costs above basic policing. The ballooning nature of the security structure and programs has left the committee bogged down in “endless line-by-line micro-analysis,” according to Hansen.
Consequently the Province offered up a final, comprehensive plan on who pays what which is in Ottawa for approval. Realistically, as the ISU tests and refines its plans, the costs continue to be fluid and the final numbers will not be known until after the Games are completed. BC originally estimated its overall Games’ costs, including infrastructure, venues and security, at approximately C$600 million.
Minister Hansen announced on February 9 that the new security numbers will force the province well over that mark. With 2009 a provincial election year in BC, the cost of Games’ security is becoming a major issue for the ruling BC Liberals, who are hoping a reasonable agreement with the GOC will soften the financial blow.
6. (C) Beyond monetary costs, the Olympics are beginning to create critical resource costs. Law enforcement representatives working at the U.S. Consulate in Vancouver are reporting that more and more of their contacts are being pulled to work on Olympics security issues.
A DEA agent was told by one of his RCMP counterparts that by September all regional drug agents could be working on Olympics, with no investigations ongoing until March 2010. Already the RCMP has all but stopped marijuana-related investigations. RCMP is also undergoing severe belt tightening with new, stricter enforcement of overtime rules. To highlight the Canadian constraints, an RCMP officer told us that the Italians put 30,000 Carabinieri in Turin for the 2006 Winter Games and the RCMP has less than 30,000 officers in all of Canada.
Big Business, But no Room at the Inn
7. (U) The 2010 Olympics are presenting significant financial opportunities for area residents and businesses. In addition to the massive infrastructure and construction projects, VANOC is procuring millions of dollars in services and support for the Games. And Canadians are not the only recipients of these contracts. U.S. firms have managed to win several major contracts thus far to provide everything from tents and portable toilets to tickeQprinting, dining services and flags for the games.
8. (U) One big concern for many in the tourist industry, and for those of us working the Games for the USG, is the question of accommodations. The International Olympics Committee requires a host city to provide between 20,000 and 25,000 rooms for just the Olympic “family” alone (sponsors, officials, etc).
This leaves little room for the spectators who come to watch the Games and the visiting dignitaries. IOC rules give only five rooms to the National Olympic Committees (NOCs) for official delegations from participating countries.
If delegations, and their support and security, are more than five people, it is incumbent on the delegation to find its own additional accommodations. Consulate General Vancouver has already secured accommodations for the agencies participating in the Olympics Coordination Office and the Joint Operations Center but would like to make an urgent plea for notification as soon as possible of the composition of the official delegations to the Opening and Closing Ceremonies of the Olympic Games.
(The Paralympics are much smaller and accommodations will be more readily available.) Accommodations are scarce to non-existent now and the sooner we know the make-up of delegations, the more likely we will be able to provide suitable rooms within reasonable distance of the major venues.
9. (SBU) Comment: It should be noted that in every meeting we have with Olympics officials the first question is “Who is heading your Opening Ceremonies delegation?” Although the official invitation comes from the NOC, in this case the U.S. Olympic Committee, to the VIP, most Canadians involved are hoping that President Obama and his family will attend the Games. The President is immensely popular in Canada and given the Games’ proximity to the U.S. there are high expectations that the President and his family will make an appearance.
10. (C) Proximity is also on our minds as we look at overall Olympic security. With the Olympics being held within 30 miles of the U.S. border there are already numerous areas where security is a shared responsibility, such as our pre-existing shared responsibilities over airspace through Northcom.
The Canadians are doing an excellent job in developing their security strategy, but we are starting to see some small signs that they are feeling the pinch of economic and personnel shortages. They are sensitive to the issues of sovereignty and we have been reminded repeatedly that they are responsible for the overall security of the Games. Our Olympics Coordination Office and Olympics Security Coordinator are working very closely with VANOC and the ISU and closely monitoring developments with an eye toward any possible further assistance we can provide should the needs arise.
End Comment.
CHICOLA

I focused on the possibility of block sales of some condos to investors.

CBC focused on the possibility of renting out condos.

Jeff Lee at the Vancouver Sun focused on how much the city is paying in interest on the unsold condos — high, but of course not as high as the Maleks were paying at $4 million a month, compounding.

And I see that Bob Mackin is looking at who might be interested in picking up a block of condos from the village.

But these 700 words have a hard time capturing everything that has been happening in this incredibly complex deal. (A sample of how badly it’s going to be mangled: As Penny Ballem explained some of the complexities for the umpteenth time to a roomful of reporters late this afternoon, one wanted to know: “But does the city own the village now?” Um, yes, in a word.)

As you can see in my story, the two sides have been bargaining for a few weeks on what it would take to simply have Millennium bow out. The keys plus $3 million, plus $10 million, plus $25 million or plus $60 million from them. Those were some of the numbers being batted around.

Key for you, the taxpayers, is to understand that it will be crucial to find out at some point how much money the city actually gets from Millennium, in addition to taking control of the physical asset. That additional money is what will make the difference in how much of a loss, if any, local taxpayers end up having to cover.

City people seemed to be quite pleased with whatever bargain they ended up striking at the 11th hour with Millennium. While I might normally be tempted to discount that and be wary of any claims that they had done well, those who are close to Millennium were dismayed at how much the developer brothers ended up handing over.

There are so many possible questions to this latest turn of the plot that I can’t think of where to start answering. So how about this? Ask me anything you want and I will answer to the best of my knowledge. And perhaps others can weigh in too.

The City of Vancouver and Millennium agree to receiver

The City of Vancouver and Millennium Southeast False Creek Properties, the company that owns the Millennium Water development, have today negotiated an agreement that will see Ernst & Young Inc. appointed as the receiver for the company. Ernst & Young Inc. will assume control of Millennium Southeast False Creek Properties and the Millennium Water development.

The City of Vancouver Planning Department has scheduled an Open House at the Hellenic Centre for 4 – 8 p.m. Wednesday, November 17th.   Obviously Larco Investments has gone back to the drawing board to make some changes to its development plan.  The Urban Design Panel made some recommendations for changes to the plan. We think the presentation that  our association, ARCCA ,  made to the members of the Panel influenced these suggestions for change.

Now we are being asked to “Have Your Say!” on the new plans.

We have 6200 signatures on our petition calling for a commercial upgrade, only, on the 7 acres.  At last count, Larco’s plans had 540 units with fewer shops, underground parking and the recreation centre for the Village probably would not be rebuilt.

With 40,000 people in our broader community, we need the shops and services not 1000 more neighbours and 500 more cars!

Doreen Braverman

ARCCA Chair

But can people please stop screaming hysterically about the abuse of process and decisions being rammed through and contempt for the public.

Yes, I would have preferred they held the meeting at a normal time so that we could have some rational discussion of what the implications are. But you know what would not have made a difference even if the meeting was held during the day with a lot of notice?

1. Housing protesters, who don’t really understand the financial implications or the political impossibility of anything they are asking for, would still have showed up to disrupt the meeting. (And very amusing to me that NPA types, who have zero in common with the radical housing activists and in fact would never in a million years agree with a single thing they are proposing, are portraying them as put-upon members of the public who have had their democratic rights trampled.)

2. People on council, after listening to the same unrealistic statements over and over, would have started to show impatience. Just like every council has over the years. Sure Raymond Louie sounds insufferably lecturing at times and Andrea Reimer makes it clear that it’s hard to be a 10 in a world of 3s. But they don’t sound all that different from many of the lecturing, snotty politicians I have had to sit and listen to over the years. And at least they listen, as opposed to reading their email or studying their foreign-language dictionaries or taking cellphone calls. Out of kindness, I’m not going to name names. But you know who you are.

(Full disclosure: As members of my family or listening audience will be happy to tell you, I also sound insufferably lecturing at times or as though I, a 10, am regrettably stuck a bunch of 3s in my life.) 

3. The Vision council, which has the majority on council, would have voted in favour of giving the social-housing-management contract to the Co-op Housing Federation, a reputable group with a strong track record. I know this will come as a terrible shock to everyone, but they will have talked about it beforehand and decided whether this is the way they want to go. Again, just like every single political party I have ever covered in 16 years has done when they have the majority.

4. They would not have rescinded their decision about hanging on to their 252 units of housing on the site, half of which will be subsidized. That debate happened several months ago: well advertised and well debated by all. Here’s a news flash for you: They’re not going to change their minds on that already painful and politically damaging decision while deciding which housing operator to go with.

What might have happened and which Councillor Suzanne Anton and the various critics have overlooked in all their fulminating is that we might have had a discussion about the financial implications of this.

I don’t have any problem with the federation running the operation. From everything I’ve heard, they’re a solid group.

What I’m wondering about is what happens re the money. The city was supposed to get $46 million up front from the social-housing operators for the leases on the three buildings. They’ll get $21 million from the federation for one building, Building 2, which is going to be mostly market rentals.

But what about the other $25 million that the city was desperately hoping to get — that’s why they structured these deals in such a weird way, with the operators being asked to put all the money up front and take out a mortgage, to be paid off with the rents over the next 60 years.

That’s $25 million in instant cash that the city now won’t have. They’re getting the federation to run the buildings for a couple of years, and I presume there’s no cash up front to do that. What does that mean for budgets, tax increases, or whatever?

Who knows? We’re far too busy carrying on about how Raymond Louie made a nasty crack about some housing activist who, normally, the NPA (and most of the general public) wouldn’t have the time of day for.

After some uproar when the province said none of the three non-profits who applied was suitable to run the social housing, the city took over.

It has chosen, as outlined in this report, the Co-operative Housing Federation of B.C. That experienced group will manage the one building it actually bid on, Building 2, the mostly market-rental building, for 60 years.

As well, one of its offshoots will manage the two buildings that are mostly the subsidized units for two years, which will allow everyone to figure out if the maintenance costs on these units is as unpredictable or as high as some people feared. Renters will be moved in ASAP, giving the place a little more life.

Plans for selling the Olympic village’s 480 empty condos have ground to a halt because the City of Vancouver is refusing to approve a new marketing plan with drastically reduced prices until the developer proves it can make up the $100-million to $200-million loss that could result.

“They need to have a satisfactory plan for how they will meet their obligations,” Vancouver city manager Penny Ballem confirmed this week. “Until that is satisfied, we can’t go forward.”