Is Vancouver the new Fortress?

The Vancouver Sun is reporting that the City of Vancouver is expected to buy out Fortress Investment Groups financing of the $1 billion Olympic Village:

Vancouver city manager Penny Ballem is meeting with council Wednesday morning to tell them arrangements have been made to assume the $750 million loan Fortress made to Millennium Developments.

In its place, the city is expected to sign a financing deal with a consortium of Canadian financial institutions.

In October Fortress stopped advancing money to Millennium for its monthy construction draws after it claimed the developer was “out of balance” on its loan requirements. That forced the city to borrow $100 million from itself to pay the monthly draws and provoked the council into asking the provincial government for special legislation allowing it to borrow an unlimited amount of money in order to consider removing Fortress as the lender.

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Olympic Nightmare
Guest
Olympic Nightmare

The woodpile is chock full of surprises that will be seeing the light of day soon enough.

Whacked foundation on chitty ground with a forked sheetwall. Construction schedule far behind because of MIA offshore glass will cost millions.

"Developer" one in name only and costing far more than will ever be "worth".

Congratulations Vancouver taxpayers. You are screwed.

Olympic Nightmare
Guest
Olympic Nightmare

"VANCOUVER – City of Vancouver has bought out Fortress Investment Group's financing of the $1 billion Olympic Village, city officials announced Wednesday.

The city confirmed it bought out Fortress on Wednesday for a total of $319,494,235. It paid a $4-million buyout fee but says Fortress started at $56 million, went down to $19 million and finally to $4 million.

City manager Penny Ballem said the deal allowed the city to cut out high interest rates charged by Fortress.

The city now has a $400-million line of credit with Bank of Montreal, the city's bank since 1886.

The bank is charging 3.25 per cent, far under the 9.5-11.5 per cent Fortress wanted."

read on
Guest
read on

one would think it might be nice if the city taxpayers got a choice as to whether they go into a multi-generational debt, but i guess that's not going to happen…

Vansanity
Guest
Vansanity
The Republican response to Obama's $75B housing aid bill: • What will your plan do for the over 90 percent of homeowners who are playing and paying by the rules? • Does your plan compensate banks for bad mortgages they should have never made in the first place? • Will individuals who misrepresented their income or assets on their original mortgage application be eligible to get the taxpayer funded assistance under your plan? • Will you require mortgage servicers to verify income and other eligibility standards before modifying mortgages? Watch more on the home foreclosure crisis » • What will you do to prevent the same mortgages that receive assistance and are modified from going into default three, six or eight months later? • How do you intend to move forward in the drafting of the legislation and who will… Read more »
MrBear
Member
MrBear

read on: I think the closest we got to that was the Olympic referendum. We've been on the hook since the village deal was signed, have we not? Everything that has happened since has just been damage control of one sort or another.

MrBear
Member
MrBear

Vansanity: "I have to admit, if I was American my economic policy is very much Republican."

I'm with you there, except that Republican economic policy has this thread of "cut taxes and hope nobody notices the resulting deficit" kind of irresponsibility to it. I'd be more in favour of "cut taxes once we have the deficit under control" politics, roughly how the Liberals used to do things. The right's fascination with "outgrowing the debt" has always seemed wishful to me.

markx
Guest
markx

I wonder what else Fortress get besides the 4 million penalty? It seems rather generous of them to let go of substantial interest payment between now and whatever the completion and sales date of Olympics village.

TUT
Guest
TUT

Mr Cambell said (yesterday ?) that BC will have 10 billion dollar wealth increase from the Olympics. I guess he forgot the minus sign!

Go for a shopping spree while you have the money!

ella
Guest
ella
"I have to admit, if I was American my economic policy is very much Republican. " I heard a Republican congressman being interviewed last week. His awesome solutions were: A. tax cuts B. $5,000 towards each of his constituents to help them purchase a Chrysler (he has a Chrysler plant in his area). Still feeling Republican? The Republican response is a lot of hot air and nonsense. They are equally involved in intervening in the market, they just have a different agenda, and they have managed to guide one of the world's largest economies to near-collapse. Yes, Clinton helped get the bubble rolling, but I would trust Clinton to steward my money over Bush, based on their respective records. The big Republican proposal is tax cuts and more tax cuts, which is just an extension of economic policy from that… Read more »
ella
Guest
ella

Vansanity, sorry, if I seemed to jump on you there, but that crew increased the American deficit to such high levels, they have had to pull down and remake the national debt clock, just to hold the new debt and they helped deregulate the bejeesus out the banking system down there. Now that they are getting on TV and moaning about "liberal" big government, I can't believe their gall.

Someday, I hope the old-school conservatives take hold of their parties (up here in Canada, too) but at the moment, conservative government no longer means fiscally conservative, which….sucks!

ella
Guest
ella

PS. Calculated Risk has a thorough breakdown of the housing bill (critical and constructive):

http://www.calculatedriskblog.com/

TUT
Guest
TUT

Republicans or Democrats, Conservative or Liberals, etc.. does not make any substantial difference, even if they wanted to act differently, which is quite dubious.

No matter who is in the executive the budgetary margin or maneuver is always a small fraction of the total (around 5-10% perhaps?), so unless the government wanted to smash basic services substantially the overall effect in the economy of ANY budget is mostly psychological for the majority of the population (taking exception of the usual "cronies" indeed!).

Adding more debt to an already indebted economy may be the solution but mostly not. You do not need to be an oracle for this prediction.

So we are on our own to get out of this mess and any hope of relief coming from the heights is mostly wishful thinking.

Watch for your pockets!

kuroame
Guest
kuroame

#4 Vansanity "Everything else (ie. pro-war, pro-life, christian right, rush, scott hannity, etc..) I’m definately Democrat. Good thing I’m Canadian."

I don't get it, isn't it the same story up here?

squidly77
Guest
squidly77

its official you guys now own it..
http://www.calgaryherald.com/Vancouver+buys+750M+

NO -LYMPICS
Guest
NO -LYMPICS

Olympic Village

COV won't fire sale them?

Lets make sure they have to!

This looks likes job for Mr Floatie

http://www.youtube.com/watch?v=zow-oztJnuY

Recall previous VCI discussions how False Creek is the end of the line "toilet bowl" for much of the COV old sewage infrastructure.

Mr Floatie sails around the Olympic Village waterfront as Bob Rennie does his pre sale schmooze/BS.

Anonymous
Guest
Anonymous

does anyone know how much 2242 west 49th Ave, sold for?

VanTOVan
Guest
VanTOVan

I love what this tool has to say in this

<a HREF="http://www.vancouversun.com/business/Worse+economic+days+come+business+luminaries/1302969/story.html&quot; rel="nofollow">Sun article:

However, Michael Audain, the third 2009 Hall of Fame inductee named by Junior Achievement of British Columbia, said he views the current downturn as a correction in a long-term bull market for the people of Vancouver and British Columbia.

Audain, the chairman of Polygon Homes Ltd., said he can still tell friends and family that it makes sense to go out and buy a home today.

“If you are prepared to wait four or five years, it will look like a very smart decision because prices are down and interest rates are down and it is really the time to buy.”

So he's telling his friends and family to buy right now? Sheesh…

Maybe no one else will listen to his b.s.

exx
Guest
exx

Anonymous:

It sold for 15% below 2008 assessment.

patriotz
Member

read on:

one would think it might be nice if the city taxpayers got a choice as to whether they go into a multi-generational debt, but i guess that’s not going to happen…

They got a choice all right, in February 2003. I voted "no".

And please, spare me the protestations that the vote didn't mention debt commitments. People who thought that the city or province (which the city of course is part of) could host the Olympics without debt exposure were just greedy and/or egocentric fools.

realpaul
Guest
realpaul
NO -LYMPICS: #14 No-Lympics, I'm not going to feign surprise when we see a "Mr. Floatie" show up in Vancouver during the Olympics. I also wonder if he'll be arrested as a terrorist suspect and held until after the games. The Sewage in the Water problem in Vancouver has been and continues to be a really gross issue. Thinking about it though , why haven't any of the hard core enviornmental groups picked up on this issue? I had a friend pose an interesting question to me yesterday, he asked me " What do you make of the 'street sweep' by the VPD issueing all these DTES residents numerous tickets. Some individuals have been ticketed several hundreds of dollars of tickets in just a few days and getting new ones every day". It stuck me like bolt from the sky… Read more »
realpaul
Guest
realpaul

patriotz:

#19 Patrioz, fair comment except that the taxpayers were told that the costs would never exceed $660 million, not the $6 billion it's now costing and growing wildly by the day. I think that even the most zealous wouldn't have put thier hand up if they realized the games would blast so far into the current financial inzanezone.

asp
Member
asp

re: republican vs democrat. liberal vs conservative.

See http://www.politicalcompass.org/analysis2 for clarification.

patriotz
Member

realpaul:

#19 Patrioz, fair comment except that the taxpayers were told that the costs would never exceed $660 million, not the $6 billion it’s now costing and growing wildly by the day.

I have just two words for you: Jean Drapeau.

No excuses.

Anonymous
Guest
Anonymous

To #22 asp

Than you for the link. Nice graphics but utterly useless content.

It assumes that there is a difference between denominations. I have a different experience therefore cannot base knowledge in faith.

Humans are entitled to believe whatever fits them but this does not change the reality. Trial and error wotks better, usually.

Vansanity
Guest
Vansanity

ella – no worries. I quite agree with you re: Republican party has lost its way, been that way for decades. Anyway, the point of the post wasn't to spark a political debate, the questions they raise are good ones and worth discussing, especially with the "monkey see, monkey do" Canadian policies. We're getting off topic here, so I'll digress.

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