Monday, January 12, 2009

Olympic Village Boondoggle: "It’s Your Money, So It Pays To Pay Attention"*



You want stinkin' numbers on the potential cost of the boondoggle?

Miro Cernetig, perhaps with the assistance of a mole or two at 12th and Cambie, has 'em.

And here are just a few....

"......Refinancing the Fortress Olympic loans for the years of 2009 and 2010 brings total costs to $170 million. (That’s the forementioned $100 million on refinancing plus $70 million for two years of interest.)

But there’s more. The value of condos are falling — by the start of 2010, they could be down more than 20 per cent. So the city — reacting like any speculator caught in a falling market — will want to delay the sales, waiting for better prices when the market rebound.

Let’s be optimistic and say that happens over three or four years — from 2011 to 2014. That would mean carrying the Olympic Village debt longer than the original business plan.

I’ll give the project a break and assume 250 Olympic condo units already spoken for are sold, offering up $250 million. So trim the Olympic Village’s debt to $625 million. At a rate of four per cent a year, that might mean interest payments of $25 million each year — or $100 million over four years.

Time for another subtotal: We’re now at $270 million. (The forementioned $170 million plus $100 million in interest for delaying condo sales.)

What I’m leaving out, you might forget, is the cost of the city land at False Creek, on which the Olympic Village sits. Taxpayers are supposed to get $200 million for that. I’ve yet to hear a business plan that guarantees taxpayers will recoup that investment by 2010....."

Quite different compared to what His Dimness has been running around saying, to anyone who will listen, for the last couple of days, eh?

And speaking of former mayors of Lotusland.....When, exactly, is Senator DaVinci (and reputed double-down boondoggle condo owner), going to tell us, again, just how great this deal is for the people of Vancouver anyway?

*Quote-in-header was taken directly from Mr. Cernetig's piece in today's VSun which comes just after he warns readers that numbers with lots of zeros are soon going to appear like some sort of magical mystery tour right in front of their eyes.....Imagine that, numbers....Which reminds me....How are Vancouver's finest making out with that 'leak! it's all the fault of the leak!!!!' investigation anway....Sheesh.


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