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.