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» babble   » from far and wide   » bc, alberta, saskatchewan   » Olympics Bailout

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Author Topic: Olympics Bailout
Left Turn
Babbler # 8662

posted 07 November 2008 05:21 PM      Profile for Left Turn     Send New Private Message      Edit/Delete Post  Reply With Quote 
An Olympic Veil of Secrecy: What's the deal with city's $100-million real-estate gamble?

Could the Olympics bankrupt the City of Vancouver, or put it in a financial straitjacket for decades to come?

I've never even considered that as a remote possibility. Until now.


The basic numbers (at least the ones I can wrest out of the cone-of-silly-secrecy at Vancouver city hall) are these:

A few weeks ago, in a closed meeting, city councillors unanimously agreed to "help" Millennium Development Corp., which is building the Olympic village. The city will lend up to $100 million to Fortress Investment Group, a Wall Street hedge fund manager, which in turn will be lending about $700 million to build the athletes' village on the south shore of False Creek.

Fortress, its stock price now trading at under $4 from its 52-week high of $19.50 -- it dropped 12 per cent Thursday -- has also been given $190 million in loan guarantees from Vancouver taxpayers. The executives at Fortress and Millennium probably feel pretty happy about how it's working out. In the current financial meltdown, they're backed by an entire city.

Taxpayers should be less thrilled. Total exposure per ratepayer? Probably in the range of about $2,000 apiece.


The city might face huge penalties. In the unlikely (though not impossible) event the whole house of cards collapses -- with Fortress's funding evaporating or Millennium pulling out of the athletes' village -- the consequences would be dire.

I suspect this means there won't be any money left over to address the homeless crisis.

From: Burnaby, BC | Registered: Mar 2005  |  IP: Logged
Babbler # 15302

posted 08 November 2008 10:06 AM      Profile for mybabble     Send New Private Message      Edit/Delete Post  Reply With Quote 
I know Ladner was could for a giggle as he blames Robertson for cities bailout of big business. With homeowners now on the hook for the buildings for the tune of over a 100 MILLION with more to come. Ladner goes on to say Robertson was irresponsible for letting citizens know what was going on with their money. Ladner promises no new taxes for homes owners despite property values going down. His actions say homeowners be prepared for increased taxes as Ladner puts city on the hook to big business when so much else needs to be done. Like the homeless and of course the fact that bailout which was to include much needed rental units are busily be sold. Ladner says Robertson's actions could disrupt cities veil of secracy and cost tax payers millions. Now this guy really knows how to spin a tell as its more like Ladner has now insured property taxes will skyrocket and city services suffer greatly.
From: vanouver | Registered: Jun 2008  |  IP: Logged
Babbler # 6289

posted 08 November 2008 12:08 PM      Profile for remind     Send New Private Message      Edit/Delete Post  Reply With Quote 
mybabble, where did you read this about Ladner blaming Robertson? If he is, he is rendering himself even more useless and unelectable, as a mayoral candidate, as it is he who sits in on those "in camera" sessions, another of which happened yesterday.

Baldry, amazingly enough, was on the news last night saying, that Ladner is already going down and won't be elected, because of his part in the secrecy and closed door planning. And that if he wanted to be mayor he was going to have to pull something amazing out.

Is this it? Attempting to make lies into truth, and saying its Robertson's fault? If so, he should be slammed down into NO votes for him, for his incredible stupidity and arrogence in believing that BS would float with Vancouverites.

From: "watching the tide roll away" | Registered: Jun 2004  |  IP: Logged

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