Vancouver Olympics Saga
A very interesting situation is occurring in Vancouver right now. Because of the economic crisis, the city of Vancouver is being held accountable for the projects, which was not the original idea of course.
Vancouver may have to borrow C$458 million ($375 million) or more to finish the 1,100 units by November, Mayor Gregor Robertson said at a news conference this month. That would almost double the city’s debt to about C$928 million, said Stephen Ogilvie, an analyst at Standard & Poor’s in Toronto. The credit- rating company said Jan. 13 that it might cut Vancouver from AA+.
The city took over financing of the C$1.1 billion housing complex after New York-based lender Fortress Investment Group LLC halted funding to the builder when costs ran C$125 million over budget. Taxpayers are reminded of Canada’s last Olympic-sized fiasco: The 1976 summer games in Montreal, which left Quebec with a C$1.5 billion debt that took decades to pay.
“The cost overruns are just getting ridiculous,” said Laurence Giovando, 85, a retired marine scientist, walking past the village in central Vancouver. “We have too many problems in this town.”
The total taxpayer-funded price tag for the games is about C$5.84 billion from all levels of government, the Vancouver Sun reported Jan. 23. That tally includes C$883 million for a convention center, C$1 billion to upgrade the Sea-to-Sky highway to Whistler venues, and C$2 billion for a subway line to Vancouver’s airport.
More here.