Vancouver city council may decide Thursday to spend the $29 million developer’s deposit to prevent a Feb. 15 construction stoppage at the Olympic Village.
Finance director Ken Bayne recommended on Tuesday that council use the money paid by Millennium Developments while it seeks new financing for the troubled $1.075 billion Southeast False Creek project. Bayne said council, granted emergency borrowing powers by the provincial government on Sunday, could take over from lender Fortress Credit Corporation.
"If we are going to meet our Olympic commitments and meet those deadlines, this may be the only way to ensure that can happen," Bayne said.
Fortress balked at $125 million in cost overruns and hasn’t paid Millennium since Sept. 15. The city, which guaranteed completion, has since paid $100 million and is seeking a $458 million loan.
Tuesday’s vote was delayed because at least one citizen, Chris Shaw of 2010 Watch and the Work Less Party, asked to speak on the matter. Shaw, ex-COPE councilor Tim Louis and 10 others want council to increase social housing from 250 units and hold a referendum.
Mayor Gregor Robertson struck a volunteer committee of 10 developers to advise him on rescuing the Village. The panel includes Concert Properties' CEO David Podmore.
Concert was one of five companies that bid on the job to build the Olympic Village, but withdrew in 2005 to avoid conflict of interest. Concert's chairman is Jack Poole, who also chairs VANOC.
