The City of Vancouver has announced that it has reached a "negotiated agreement" with the Olympic Village developer to place the project in receivership.
Mayor Gregor Robertson told reporters at city hall today (November 17) that Millennium is "effectively" handing the project over to Ernst & Young.
Robertson said this will help the city "turn the corner" and described the village as a "crown jewel".
"It has been recognized around the world for its sustainability features and urban form," he said.
Vancouver mayor Gregor Robertson says it will be a challenge for the city to break even on the Olympic Village.
City manager Penny Ballem pointed out that the Olympic Village has won several awards. "However, it is languishing," she added. "It needs to be revitalized and decisions need to be made."
Vancouver city manager Penny Ballem discusses the negotiated agreement for Millennium Southeast False Creek Properties to enter into receivership.
Robertson said that it will take several years before the city will know if it will break even. He also acknowledged that it will be very difficult to recoup all of the investment.
Millennium Southeast False Creek Properties Ltd. owes the city $740 million. Each unit would have to sell, on average, for more than $1.5 million each before the city could even come close to recouping its loan.
"Taxpayers are on the hook and there is considerable risks due to the financing arrangements made by the previous council,” the mayor said.
Mayor Gregor Robertson says he hopes that the appointment of the receiver will put the Olympic Village on "stable ground".
The court-appointed receiver, Larry Prentice, said that he has taken over control of the management of Millennium Southeast False Creek Properties Ltd.
In response to a question about whether there will be price reductions on the units, Prentice mentioned at the news conference that he will soon meet with the project marketer, Bob Rennie, to discuss this topic.
Court-appointed receiver Larry Prentice explains why he has replaced Millennium executives and directors as the overseer of the Olympic Village.