Village starts to dig itself out of hole

Good news! Now that shops and restaurants have opened up in the former Millennium Water Olympic Village housing development it’s no longer the creepy ghost town in the middle of the city!

Not only are there signs of life down there, the city actually looks like they’re starting to shrink the big ball of debts they acquired when they took responsibility for the project.

This progress is hard won and comes thanks to a number of efforts including:

-The city lowered property tax for businesses
-In February 2011 prices were dropped 30%
-In August an additional $5k in incentives offered to buyers

The city isn’t saying how much they still owe on the village, but the debt at the end of 2011 was $462 million.  Most of the extra expenses are from repairs for building deficiencies and marketing costs.

It looks like there is now just over 25% of the condo stock that remains unsold, but the receiver has put a block of rental units up for sale.  The buyer will be required to maintain those units as rentals for 20 years.

“The purpose and benefit of the sale of the rental buildings is to generate cash to repay the loan payable to the secured lender [the City of Vancouver],” said a statement from Ernst & Young. “It is particularly advantageous to undertake such now while interest rates remain low, the rental buildings at The Village on False Creek are fully leased and there remains an active pool of potential and interested buyers.”

The receiver also got permission from the court to put the project into bankruptcy, if needed, a move that it says is not being contemplated right now but “gives … the flexibility to consider the option of generating value from SEFC’s operating tax losses.”

Read the full article in the Globe and Mail.

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Don Lapre
Member
Don Lapre

First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!First!!!!!!!!

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

when’s the crash coming? olympic village is old news.

Makaya
Member
Makaya

In the mail box this morning, a “market snapshot” from a downtown realtor. His signature:

“Selling & Buying? We Take 30% Off Realtor Fee
Sutton West Coast Realtor”

Times are tough for realtors these days…

patriotz
Member

but the receiver has put a block of rental units up for sale.The buyer will be required to maintain those units as rentals for 20 years.

There must be some legal requirement binding the CoV to keep them as rentals, since anyone with any sense (which certainly includes Bob Rennie) will understand that they could be sold for far more as condos.

If not the city council is just nuts.

Fred
Guest
Fred

@Bull! Bull! Bull!: that is what they do best, recycling old news. There is even a site that recycling others’ others’ others’ friends’ friends’ peekaboos.

Used House Salesperson
Guest
Used House Salesperson

This recent surge in trolls is starting to look like 2008 all over again!

Best place on meth
Member
Best place on meth

2 years after going on the market the village is still only 75% sold.

There is no positive news here, it’s still a disaster.

jesse
Member

@patriotz: “The buyer will be required to maintain those units as rentals for 20 years.”

This looks like a finesse move to scrape the barrel for some additional investors who should know better. And to all this I say best of luck. It’s Vancouver taxpayers’ money at stake, and if they can find a few suckers and their banks to take these units off their hands, all the better.

jesse
Member
@Best place on meth: “2 years after going on the market the village is still only 75% sold” This story has fallen out of the limelight for a while now and the accounting so confusing it’s hard to tell what the City owes any more. That was likely part of the gambit from the outset, a typical civic move to obfuscate, distract, divide, re-classify, etc. and they have decades of experience doing just that. The goal, from what I can see, is to keep things transparent enough to keep NPA hacks quiet but not too transparent so as to do a proper costing of this mess, because it can only be bad for the incumbents. The MSM… well if they wanted a good story they should muckrake and get a pro bono forensic accountant, or a civic auditor general, to… Read more »
Makaya
Member
Makaya

@Used House Salesperson: Yes, according to the Troll Index, sales these week-end must have been really slow…

Crikey
Guest
Crikey
@Makaya: “Times are tough for Used House Salesmen these days…” To be fair, though, the PNE has begun, and they employ a lot of carnies that promise you “can’t go wrong” and that it is easy to “win big”. So, Used House Salesmen can transfer their skills over to those positions at least until September. By the way, the PNE shows just how World Class a city Vancouver is. New York, San Francisco and the like cannot come close to matching the PNE’s world class ten-second Pig races, Superdogs that can (gasp!) actually jump through *real* hoops, and the alluring smell of farm animal dung everywhere. New York has live summer performances by current mainstream and classic artists in Times Square and Central Park. Pffffttt! Those poseurs! They only *WISH* they had the pride of having rock group “Heart” as… Read more »
Anonymous
Guest
Anonymous
I am staying in the interior in a place where the market has been dead for four years, with houses sitting for several years, even after several large price reductions. Companies/mills have left/closed down, no jobs, new comers not staying, people need to drive to Alberta to find work, etc… Nevertheless, in the past week, I overheard two similar RE conversations on how RE always goes up. The main speaker was someone who made a successful flip in the past, and was lecturing everyone with long term plans to become rich with RE. One even said that the young generation knows how to do it, and how to start investing at an early age, so that by age 30 they can be mortgage free, so there are plenty of young buyers out there. Both conversations ended with “I just put… Read more »
Joe_Blown_Away_By_High_Housing_Costs
Guest
Joe_Blown_Away_By_High_Housing_Costs

I can’t submit any comments.

Joe_Blown_Away_By_High_Housing_Costs
Guest
Joe_Blown_Away_By_High_Housing_Costs
This site has not been working very well for me over the past week or so. On an ipad I can no longer scroll down through the comments. As soon as I scroll down, it pops right up to the top of the page again. It used to only do that if I clicked on “view comments in chronological order”. Now it does that all the times. So I can’t really read through the comments on an ipad, except for the most recent ones. So I am on a pc. I typed out something in a text file and copied and pasted it and it never appeared. When I try to re-post it says “duplicate comment detected”. When I modify it slightly so it is not a duplicate, it still does not post. I don’t know if the problem is… Read more »
Anonymous
Guest
Anonymous

@Best place on meth: “2 years after going on the market the village is still only 75% sold. There is no positive news here, it’s still a disaster.”

They were on the market since around 2007/2008 as presales. We are going on 5 years with only 75% sold. These pathetic sales are taking place while Vancouver is in the biggest speculative condo bubble ever seen. Other projects seem to have had no trouble selling. Now they have missed their chance to sell at inflated prices. What a bunch of flunkies.

joe_blown_away_by_high_housing_costs
Guest
joe_blown_away_by_high_housing_costs

Still not working from my laptop. It appears the onyl way for comments to appear is if you type them directly into the box on this website. Copying and pasting from text files does not work. I am not re-typing my comment. I give up. I have better things to do on my day off anyways.

joe_blown_away_by_high_housing_costs
Guest
joe_blown_away_by_high_housing_costs
I would appreciate any opinions on the values of homes in the suburban fringes of Maple Ridge. I have to admit I’m not a RE expert (most of what I know, I’ve learned from this blog and vreaa). I am more of an urban studies/social science person. I’ve just started to learn about some of the new development in the north part of Maple Ridge called Silver Valley. These are single family homes built on forest land. This is greenfield development–previously undeveloped land becomes suburbanized. Silver Valley is not really a suburb–the better word for it is exurb because it’s on the furthest, more marginal part of the urban fringe of the metropolitan region. It fronts right up against undeveloped land. The commute to jobs, stores, anything must be a total b!tch. Interesting article on the pains of new development… Read more »
jesse
Member

@joe_blown_away_by_high_housing_costs: your comment was likely held up in moderation. Alas Don Lapre’s comments were not.

Anonymous
Guest
Anonymous

@jesse: “A quick eyeball, knowing the previous prices and the number of units unsold or withheld as some of the rentals have been, puts the costs in the hundreds of millions. (And I doubt any council could have done much better.)”

Um they could have sold them all by now by pricing them at market rate instead of having 25% of the units still on the books with condo prices now in free fall. I would say a trained chimp could have done better.

joe_blown_away_by_high_housing_costs
Guest
joe_blown_away_by_high_housing_costs

I can only assume copying and pasting from text files has been disallowed to cut down on the activity of trolls.

I would rather allow copying and pasting and put up with trolls. The trolls offer comic relief. I prefer to write my comments in text files because then I can edit them. If the site disallows copying and pasting from text files, at least introduce an edit function/preview function.

patriotz
Member

@joe_blown_away_by_high_housing_costs:
The website cannot distinguish between text that has been typed in and text that has been copied and pasted. The protocol does not provide such identification.

Anonymous
Guest
Anonymous

@Crikey: i am assuming you were posting this from a basement somewhere in NY? I know, you just cant stand to see others’ enjoying the city; noone cant help you.

Joe_Blown_Away_By_High_Housing_Costs
Guest
Joe_Blown_Away_By_High_Housing_Costs
@patriotz and jesse Thanks for the info. Sorry for getting pissy. Technology hiccups are so frustrating. I had no idea that comments on this blog are moderated. I’ve never experienced that before with my comments. It seems I can make all the comments I want and they all appear. But the one I typed out about RE in Maple Ridge will not show no matter what I do. And I still have a problem with the ipad. When you scroll down you have to keep your finger on the page otherwise it jumps right back to the top. That is so frustrating. It seriously has impeded my enjoyment of this site. That problem seems to have come in ever since the “ipad fix” was introduced on this site. Funny thing is I never had a problem with this site from… Read more »
Just sayin
Guest
Just sayin

A lot of you might be itching to buy. But I think the village is still over priced.

/dev/null
Member
/dev/null

@Joe_Blown_Away_By_High_Housing_Costs: I had the same problem on my iPad but as of last night it went away. Not sure what the issue was. Also, if you have a lot of links (>1 I believe) in your comment then it won’t display until the admin allows it but WordPress still knows it’s a duplicate so you won’t be able to submit it again.

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