Vancouver's Olympic Village Condo Project Marketing Relaunch Stalled
Vancouver's Olympic Village Condo Project Marketing Relaunch Stalled
Millennium Development and the City at odds about price drop incentives
Vancouver's Mayor Gregor Robertson has publicly stated that the Olympic Village construction loan shortfall will not be a Vancouver taxpayers problem. The Mayor clearly stated that Millennium Development will be held responsible to cover any and all shortfalls in loan repayment.
The much publicized new marketing launch for the development has hit some snags; the City and the developer cannotagree to price reductions which they must do accordingto the developers prospectus. To quote Mayor Robertson "The City doesn't care how the loan is paid back, whether it is from the sale of condos or the sale of personal assets. We expect to be paid in full and it's up to Millennium to figure out how to do that." The City does have registered charges on other assets owned by the developer and is looking for more to tie up.
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Due to the disagreements about new condo pricing for the Vancouver development, it looks more likely that the new marketing campaign won't commence untilthe New Year or perhaps even the Spring of 2011. Reduced sales prices mean reduced revenue for the City which is the main reason for the disagreement. The City wants to know how Millennium Developments will make up the shortfall, a question that is still unanswered.
It was announced early this morning that the Co-op Housing Federation Of BC to manage 84 non market units and it awarded the Federation's COHOManagement Unit a two-year operating agreement to manage another 168 units in the Vancouver condo development.
Although a firm number has not been mentioned, City Manager Penny Ballam said the number could be as high as $200 million. It's looks as though the developers will have to put up a good chunk of additional collateral before the City agrees to the new sales plan sitting on Bob Rennie's desk.