Olympic Athlete's Village: Vancouver Calls for Emergency Funding from BC
Mayor wants MLAs recalled to deal with Olympics issue
Mon. Jan. 12 2009, CTV.ca News Staff
Vancouver Mayor Gregor Robertson is calling on the provincial legislature to be recalled so that it can deal with the financial problems plaguing the 2010 Olympic athletes' village.
About half of the village's $1 billion developing costs have already been paid out. But Vancouver has been paying the monthly construction costs since October. That's when lender Fortress Investment became uneasy about a $750-million loan to the village's developers.
The loan is now being renegotiated. But Robertson says if the deal doesn't work out, Vancouver will have to borrow more than $450 million to finish the village. The province will have to make a legislative change to borrow the money without going to local voters for approval at the polls.
"The city is not authorized to borrow, particularly amounts of this significance, without the consent of [Vancouver] taxpayers," Robertson said before a public council meeting on Monday afternoon.
"Due to the emergency and the financing that's required to complete the Olympic village project we are going to be asking for authority to borrow in order to complete this project."
The provincial government has not said if MLAs will be recalled for a sitting of the legislature, but B.C. Finance Minister Colin Hansen has said the provincial government is open to the city's plea for help.
Prime Minister Stephen Harper -- who is in B.C. for pre-budget consultations -- told reporters that Ottawa will not put up any more money for the Games.
At a press conference in Vancouver, Harper said that Ottawa has made the "final federal contribution to the Games themselves."
He said there would be no more money for "cost over-runs."
The Vancouver Olympic organizing committee has put in $30 million to the village. It's designated for the 250 units of social housing being set aside from the 1,100-unit-total.
A statement from the committee said they were willing to offer help, but there were no further details.
Last week, Robertson told residents that in the fall of 2007 city council had assumed a legal commitment to finish the project, which will cost about $875 million.
A city councillor close to the mayor now says the provincial government may ultimately be on the hook for the project.
Councillor Geoffrey Meggs claims a 2006 Auditor-General's report says that the province guaranteed all venue projects. He says the guarantee was part of Vancouver's original 2002 bidding process to host the 2010 Winter Olympics, which will be held in the city and resort community of Whistler, about two hours away.
The report said: "The costs will ultimately still fall on the province since the venues will have to be completed -- whatever the price in order that they be ready in time for the Games" -- if private backers walk away.
The province has said it doesn't agree with the assessment.
Meggs told the Globe and Mail that there is a "continuing debate" about the matter.
"The reality is, we're all in this together," he said.
The 2002 agreement notes that Vancouver promises to complete the athletes' village, but there is also a provision that says B.C. "guarantees that it will take those measures necessary in order that Vancouver may fulfill its obligations."
The agreement allows parties in a dispute to mediate the conflict. If unresolved, the issues may also be negotiated through binding arbitration.
With files from The Canadian Press