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Financing settled for Olympic village and audit in

October 6th, 2009 · 14 Comments

I’m just analyzing the information this myself, but here is the city information that came out this morning with details on where the Olympic village is at, what interest rates have been negotiated with the Olympic-village developers, and what the audit report has to say.

City ended up giving Millennium Developments a bit of a break on the interest rates, though gives them incentives for paying back the loan early.

I await your comments on the audit information.

The links are here.

http://vancouver.ca/ctyclerk/cclerk/20091006/ttra20091006ag.htm

Categories: Uncategorized

  • Joe Just Joe

    I get a kick out of the following detail

    However, the preliminary analysis (based on the recent estimate of revenue from Table F) does appear to suggest that if Millennium Water is sold at prices 20% less than current forecasts, the City’s total exposure (Protective Advances, unpaid land purchase price of $171 million, etc.) may range from $10 million to $90 million (before recourse to guarantees and related security provided by MSEFC and its affiliates).

    The current forecast they are using in the report is from Dec/08, as we know prices have rebounded slightly from then, so in reality prices would have to drop between 20-30% for the city to lose up $90Million. And even in that dire case Millenium has put up it’s other holdings as colleteral. Looks like the doomsday scenario painted by Vision last fall isn’t very likely to occur.

  • IanS

    My understanding, from the news, is that Millenium and related companies have provided security for the amount borrowed. If that is the case, I don’t think there would be any real exposure, other than perhaps the cost of executing on the security.

  • Michael Phillips

    -NPA Coun. Suzanne Anton said, “If house prices were to collapse again there is the risk” of losing several hundred million on the project.

    http://www.theprovince.com/Mayor+Robertson+slams+previous+council+Olympic+Village+budget+nightmare/2072596/story.html#

    Great PR skills! Even KPMG says we’ll probably only break the 100M loss mark if housing prices go down 30% from Dec. 08 prices, meaning 35% or so. The NPA must get frustrated when she makes these kind of statements. Why not just say “Even if prices go down another 15% KPMG says we’re still likely to make money on this deal” and then go home and take a nap.

  • FBT

    Phillips,

    Anton is a joke, even the NPA knows this, they just can’t shut her up. Enjoy her for now, she’ll be gone in 2 years when her attempt at grabbing the NPA throne to run for mayor will vanish when they opt for a star candidate over her waste of space.

    Nice effort though on shortening the quote to make it seem worse though. I wouldn’t expect anything less from you.

    As for Robertson blaming the previous council after being in office for 10 months. Hah! He simply can’t do anything right and the only good words on his eco-business strategy were written by those who got the scoop on the story.

    Nice PR strategy from those at Vision HQ and those communications companies pandering to them. In two years they’ll be lucky to get new clients after the abysmal effort for those on Cambie.

    When all else is going wrong, blame the previous council and hope the citizens aren’t smart enough to figure out that you’ve been calling the shots long enough to be blamed for them now.

    One last thing. According to the Olympic clock we’re less than 129 days to go. EVERYONE remembers the worldwide trouncing the city took when the OV issue hit.

    Why on earth would the current council hold onto the report for this long and poke the city in the eye this close to the Olympics?

    What the F*CK is the point Gregor?

    Vision should be ashamed of themselves.
    Again.

  • spartikus

    Nice effort though on shortening the quote to make it seem worse though.

    The Province story doesn’t directly quote her though. Semantics? Maybe, but even with the “However, she noted the real-estate market in Vancouver seems to have stabilized” it’s not, er, a winning political spin for the NPA.

    And without supporting evidence, neither is your subsequent diatribe.

  • FBT

    Spartikus,

    You never stop drinking the Koolaid do you?

    What statement of mine needs supporting evidence?

    That Robertson and Vision are attempting to wag the dog by continuing to blame the previous admin when they’ve had 10 months to run their own show?

    That the report could have been released earlier to save the city further international embarassment on this issue 129 days from the Olympics starting?

    Since Gregor doesn’t have the balls to get on here and answer the question Spartikus, why don’t you?

    What the F*CK is the point at this stage?

    You’re just still pissed off for me telling you to get your head out of your ass.

    Oh, and don’t forget the suporting evidence you demand from everyone else.

  • spartikus

    What statement of mine needs supporting evidence?

    Pretty much the only substantive claim you make is the report could have been released earlier than it was. The official reason given why it wasn’t is that there were “sensitive” and “ongoing” negotiations that made release not in the taxpayers interest. If you wanted to dispute that, you’d probably want to empirically display what led you to the conclusion that rationale was/is bogus.

    But I may be old-fashioned that way.

    You’re just still pissed off for me telling you to get your head out of your ass.

    Ah yes, your greatest triumph…

  • Another commenter

    Before people get angry…

    I’d like to put a question out to the group…in reviewing the report, its seems fairly obvious that a number of staff/politicians were clearly our of their element , acting like a development company instead of looking out for the public good.

    I was walking by the development and was quite impressed, this would certainly be a fine place to live and I’d be happy to have it in the City if not for the risk assumed by the City and the possible corruption in re-gigging the criteria to allow Millennium to get the contract.

    What is an appropriate level of risk/involvement for the City to take in order to encourage innovative development like this? Would love to hear both sides of the fence.

    Play nice

  • Michael Phillips

    “Nice effort though on shortening the quote to make it seem worse though. I wouldn’t expect anything less from you.”

    If I wanted to manipulate the quote, why would I link to it? Let’s focus on the issue and not eachother, people don’t want to post on a nasty thread and this is an important issue that we should be able to have a comfortable conversation about.

  • rf

    “The official reason given why it wasn’t is that there were “sensitive” and “ongoing” negotiations that made release not in the taxpayers interest. ”

    Pretty ironic reason, huh?
    Wasn’t that the NPA reason that Gregor rode to victory in the election?
    Sparty?

  • spartikus

    One of the reasons, yes. Though it now strongly appears the NPA’s use of that tack was for political reasons. Whether Vision’s use of the same explanation is similar, I don’t know. If FBT could provide some backup to the claim the KMPG report was held back for political reasons – he’d have a valid point in my opinion. He/she might be right, they might be wrong. Without evidence, it’s just opinion. I don’t know.

    Speaking of opinions (and I’ve said this before) – while there have been many errors and flaws in the OV project – the “original sin” was the decision to award Millennium the contract. And how they went from 3rd to 1st is the key question at the moment.

  • rf

    I think a few more days of Gregor exaggerating this “boondogle” and we may get one of Larry Campbell’s stinging responses.
    Pretty hard to slam the thing without Larry taking it personally.

  • Joe Just Joe

    So now the issue is why Millenium was chosen?
    I thought the issue was the city was going to lose a boatload of money. Now that that does not appear to be the case it’s about the developer selection.
    Personally if the city isn’t going to lose money on the project as now appears to be the case, then we should be happy they chose Millenium as they were the ones that offered the highest price.

  • FBT

    Spatikus,

    Take another look at my post (#4) and you may notice that I asked 2 questions at the bottom of my post.

    They’re questions. Let me repeat. They’re questions. What part of that squiggle with a dot at the bottom didn’t you understand?

    Oops, there goes another of those damn thingies.

    If you can’t see a pattern developing under Vision’s leadership in the past 10 months, I’m not sure what more anyone can say to you.

    Oh, and I left the “r” out on purpose, it seems to suit you and your never-ending effort to stick up for Gregor and Co.