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
7 years 2 months ago

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
7 years 2 months ago
"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… Read more »
read on
Guest
read on
7 years 2 months ago

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
7 years 2 months ago
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… Read more »
MrBear
Member
MrBear
7 years 2 months ago

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
7 years 2 months ago

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
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markx
7 years 2 months ago

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
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TUT
7 years 2 months ago

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
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ella
7 years 2 months ago
"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… Read more »
ella
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ella
7 years 2 months ago

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
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ella
7 years 2 months ago

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

http://www.calculatedriskblog.com/

TUT
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TUT
7 years 2 months ago
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… Read more »
kuroame
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kuroame
7 years 2 months ago

#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
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squidly77
7 years 2 months ago

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

NO -LYMPICS
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NO -LYMPICS
7 years 2 months ago

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
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Anonymous
7 years 2 months ago

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

VanTOVan
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VanTOVan
7 years 2 months ago
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… Read more »
exx
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exx
7 years 2 months ago

Anonymous:

It sold for 15% below 2008 assessment.

patriotz
Member
7 years 2 months ago

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
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realpaul
7 years 2 months ago
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'… Read more »
realpaul
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realpaul
7 years 2 months ago

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
7 years 2 months ago

re: republican vs democrat. liberal vs conservative.

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

patriotz
Member
7 years 2 months ago

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
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Anonymous
7 years 2 months ago

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
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Vansanity
7 years 2 months ago

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.

patriotz
Member
7 years 2 months ago

The Republican party hasn't lost its way at all. It's just that its way – appealing to stupid white people – has hit a demographic and economic dead end.

MickeyFinn
Member
7 years 2 months ago

This is disturbing… viewer discretion is advised.

Link:

http://www.silverbearcafe.com/private/11.08/forec

NO -LYMPICS
Guest
NO -LYMPICS
7 years 2 months ago

Realpaul

Post # 20

Good thinking.

When I heard re: the ticket campaign on DTES, I thought it as mostly harassment by police to discourage loitering.

However, your point about the DTES residents inabilty to pay then sets them up to for possible incarceration is probably what the authorities are planning to do if the need arises. However, that may backfire on the authorities if the public sees through this and protests.

I wonder if this was the same strategy other Olympic host cities have employed.

Vansanity
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Vansanity
7 years 2 months ago

Vancouver commercial real estate sales plummet in first half of 2008, Colliers reports

http://www.bivinteractive.com/index.php?option=co

Down 50% in 1st half of 2008 vs. 2nd half of 2007.

NO -LYMPICS
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NO -LYMPICS
7 years 2 months ago
VPD throw out homeless man's belongings Wednesday, February 18, 2009 by David Eby http://davideby.blogspot.com/ Watch the video QUOTE: I stopped and watched as the male police officer asked two bystanders if they owned the shopping cart, tarps and blanket. He then approached me and I told him that I didn't own the belongings. He then made an "into the truck" motion with his finger to the City of Vancouver employees who then promptly began loading all of the belongings into the garbage truck. QUOTE: Difficult to see how our homeless couple was committing this criminal offence by sitting on the… Read more »
realpaul
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realpaul
7 years 2 months ago
Well Garth hits one on the nose again. In his latest blog he outs a high placed denier who accuses him of doomsaying when in fact his writings have actually underestimated the problem as it is. Cognitive disonance by the deniers is always born out of some personal tradegy unfolding. People who are in big trouble want the bad world to stop spinning. I suspect that some of the most vociferous deniers are those people who are literally standing on the proverbial track watching a train bearing down on them and it makes them feel helpless , and useless and… Read more »
jesse
Member
7 years 2 months ago

realpaul: 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.

So who do we blame, the liars who lied, the stupids too stupid to properly do the math, or the fools too foolish not to verify the numbers?

But we were told… wah wah wah. The pathetic cry of fail.

NO -LYMPICS
Guest
NO -LYMPICS
7 years 2 months ago
COV and Olympic Village: I see that the COV will be playing cute with numbers. The opening volley will be the promotion of cost savings…ie it has saved $100 million .That becomes a relativity argument, given the project had high probability of becoming a white elephant with cost overruns in a collapsing RE market. Now it is waffling about the social housing component. Given details revealed earlier…the entire project will undergo some renovations after the Olympics is finished. That costs money. If not mistaken, the Olympic Village will not be ready for sale or occupation till late 2010. If this… Read more »
NO -LYMPICS
Guest
NO -LYMPICS
7 years 2 months ago

Request for info:

On Global , Chris Carter says the Canadian Housing starts will dip by 25 %

25 % ??

Doesn't that imply it will be 75 % of what it was .

Where do they pick these numbers?

Most of the starts would be concentrated in the ex- boom areas, ie urban centers, would they not? Those have now tanked.

All I am seeing is " Big Chill " , a major collapse, and NFW is there much if any new starts.

markx
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markx
7 years 2 months ago

Are they harrassing the bums for the Olympics or for the completion of W? Bob Rennie is probably worried about his reputation or part of his commission as W completion approaches and rumors of buyers walking away from deposits are floating around. Are they trying to clean up the DTES temporarily so that W presale buyers complete?

TUT
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TUT
7 years 2 months ago

Propety taxes in Vancouver are going up a long long way. People who own property are grabded by their "cajones" with the only recourse to cry and pay.

Welcome to Happy Owners Club!

ted
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ted
7 years 2 months ago
markx: Nah, the city doesn't care about the W as much as they care about our reputation on the world stage. City workers have been clearing out tent cities and moving along homeless in other neighborhoods as well. I suspect the "ticketing so you can throw them in jail at the last minute" theory may be true. As far as all the extra Olympic debt goes – that's happened to various degrees in every host city. It's amazing how that gets ignored in the bid process. Didn't Montreal just finish paying for their olympic stadium after 30 years? I wish… Read more »
Anonymous
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Anonymous
7 years 2 months ago

i heard yesterday a lot on olser st. between 50th and 51st, just sold for $1,366,000.00. it looks to be approx. 70×12?.

it seems like a good price for a lot to be selling in this environment. thoughts/comments by anyone?

Can you hear me?
Guest
Can you hear me?
7 years 2 months ago

The olympics…

WTF.. pardon my english.

Honestly who really cares? How can it benefit this planet, humanity, environment if somebody can do double cork screws in the air on a board? Honestly.

Or, get in to the goal 0.000002 secs before the other one?

How the , pardon again, can we get (or rather them) get their priorities so frickin messed up.

Is it time for a revolution?

Apparently the current "democracy" is not working.

NO -LYMPICS
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NO -LYMPICS
7 years 2 months ago
Re: Police and City crews tossing Homeless peoples belongings into garbage. Hmmm. I actually asked a Police Officer the definition of " Theft ". He stated theft was defined as " depriving someone of the lawful use of their own property " . CASE: Homeless person in possesion of real goods. Either: (i) they were stolen OR (ii) the homeless person is the rightful owner (ownership is 9/10 of the law ) Thus, if the police see a homeless person's goods , and no owner , the police should determine if they are stolen, or else have them confiscated as… Read more »
patriotz
Member
7 years 2 months ago

Can you hear me?:

Apparently the current “democracy” is not working.

Oh it's working all right. Vancouver voters expressly supported the Olympics 2 to 1, and BC voters supported parties that supported the Olympics twice in a row by a margin of about 90% to 10%.

People simply thought the the Olympics were going to be all gain and no pain. In other words, they were expecting something for nothing. This attitude is also essentially the root cause of the global housing bubble and current economic crisis.

The fault, dear voters, lies not in our politicians, but in ourselves.

Lily pad
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Lily pad
7 years 2 months ago

Anonymous: Are you kidding? You think that's a good price for a lot? You need your head examined.

realpaul
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realpaul
7 years 2 months ago
NO -LYMPICS: #40 no-lympics, a few weeks ago an RCMP official was giving a budget speech in Kelowna ( I have posted this before) and told the City Council that they would need to prepare for extra policing costs due to the outflow of transients from Vancouver due to the Olympic security measures. He was quickly moved out of the scene and a senior RCMP spokesman reworked the statement that same day and the story dissapeared. I assume he was told to STFU. But the genie was out of the bottle, the plan is to 'disappear the street people' during… Read more »
realpaul
Guest
realpaul
7 years 2 months ago
PS, I Couldn't help including this from Garth Turners Blog today, on the money info. "Back in the real world, life was disintegrating at the usual clip. * Today’s numbers show the Canadian economy is contracting at an annual pace of 9.6%. By way of comparison, the definition of a depression is a decline in activity of 10%, and this week we heard Japan has tumbled 12%. Bummer. * Today we discovered 6.54 million American are unemployed and 600,000 a week (more) are applying for unemployment benefits. * House building in Canada will collapse by 25% this year, says CMHC.… Read more »
Lily pad
Guest
Lily pad
7 years 2 months ago

Lily pad: Sorry Anonymous, I thought you meant 1.3 was a good price for the buyer but now that I re-read your post you must have meant for the seller. (I haven't had my squirrel pate yet this morning 🙂 ).

Yes, could be possible that a greater fool came along. The 15 year old (monster) houses in that area on 6k ft. lots are listed between 1.3 and 1.8. Newer/larger ones are listed for 3mil. Go figure.

deathspiral
Guest
deathspiral
7 years 2 months ago

An article in the Vanouver province paper today suggested that hawaii tourism from Canada was booming. What a crock of shit. Tell that to the Hawaiians. What are these local papers trying to pull?

http://www.starbulletin.com/news/hawaiinews/20081

james
Guest
james
7 years 2 months ago

America has been under the control of the Democrats since 2006 when the housing bubble hit it's peak and burst. So far the results don't look so good. The same old pattern is repeating. The democrats lead the US economy to ruin and the republicans step in later and fix it.

NO -LYMPICS
Guest
NO -LYMPICS
7 years 2 months ago
Anonymous Post# 38.. Keep em coming…that info re: sales etc is great. I do believe there are buyers that will still pay these F'n ridiculous prices ..maybe call the "Groundhog" Buyers. They don't see the RE market tanking, but were programmed to buy when spring rolls around, but have now awakened from their bunker of hibernation, and will still pay high "bubbled " prices . Then the Muir's , Rennie's and assorted RE and REBGV types will use these ridiculous prices like trophies and say " See? All is WELL !" . Let economic (and other?)Darwinism kick in till these… Read more »
grapplingwithdoom
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grapplingwithdoom
7 years 2 months ago
The BC governments don't make a lot of sense. First Gordon Campbell announced that BC would lose around 7000 jobs, that got blown out the window and so the projection moved up and thats been blown away again. Where are these guys getting thier 'projections from', a box of cracker jacks? http://www.starbulletin.com/news/hawaiinews/20081… And an economists view of the BC numbers Economic and Fiscal Outlook My own view is that the economic picture in BC is worse than what is in the budget. While premised on a 0.9% drop in real GDP in 2009, the budget assumes a rebound arriving in… Read more »
NO -LYMPICS
Guest
NO -LYMPICS
7 years 2 months ago
realpaul Post # 43 One business news item was even WAL MART has seen declines. What does THAT tell you ? IKEA crowds? IKEA has always been a cheaper option if one needs the types of items it sells. My guess is IKEA will survive. Other simply won't. However, people may simply be window shopping…it may be cheaper to turn down the thermostat at home and get heated in a mall etc. who knows? BTW I know a long term IKEA employee who told me IKEA did have plans to mega- expand the Richmond store,(bought adjoining property ) but pulled… Read more »
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