Anna Asi, M.A.

Olympic village condo prices to be slashed by an average of one-third

Condo prices at the troubled Olympic village project will be reduced by an average of 30 per cent from May 2010 levels, according to Ernst & Young, the project's receiver. The following is a look at how much Olympic Village units are going for on the market.

$575,000: 1 Beds, 1 Baths - # 710 1633 ONTARIO ST.

$589,000: 1 Beds, 1 Baths - # 405 1633 ONTARIO ST.

$469,000: 1 Beds, 1 Baths - # 703 123 W 1ST AV

$469,500: 1 Beds, 1 Baths - # 405 123 W 1ST AV

$760,000: 2 Beds, 1 Baths - # 710 123 W 1ST AV

$998,800: 2 Beds, 2 Baths - # 804 123 W 1ST AV

$498,000: 1 Beds, 1 Baths -# 201 181 W 1ST AV

$539,980: 1 Beds, 1 Baths - # 502 181 W 1ST AV

$1,238,000: 2 Beds, 2 Baths - # 607 181 W 1ST AV

$1,259,000: 2 Beds, 2 Baths - # 909 181 W 1ST AV

Courtesy of Vancouver Sun.

The few residents found walking through the empty streets of the Olympic Village were disappointed, but not surprised, to hear Wednesday that the developer of their condos has gone into receivership.

“Sad to hear that,” said Keith MacPherson, who has lived in the Millennium Water development in False Creek since the summer. “I really like the area, the facilities are great and it’s a good environment.”

Vancouver officials announced Wednesday that the city has a reached a “mutual agreement” that would allow a receiver, auditor Ernst & Young, to manage the development, in place of Millennium.

That company is still on the hook with $740 million in outstanding loans to the city.

How hard taxpayers will feel the heat of the debt will not be deteremined for some time, Mayor Gregor Robertson said, as it will take years for the remaining 454 market condos to sell and the city to recoup its losses.

Marie, a woman walking through the neighbourhood’s main square who did not give her last name, said the news of the receivership comes as no shock.

“I’ve had misgivings right from the beginning,” she said. “There’s just been a few too many concerns.”

Scott Hennig, spokesperson for the Canadian Taxpayers Federation, said he didn’t think the city has much chance of recovering any of their investment, let along making any money off it.

“This is bad news and maybe a bit surprising that taxpayers are going to be left holding a bag,” Hennig said. “It’s unique circumstances, but this is what happens in general when governments come in and bail out companies that can’t make a go of it anymore.”

Here's how the Olympic Village fiasco came to be:

Nov. 2002: City of Vancouver signs deal with Vancouver Olympic Bid Committee to build an Olympic Village.

July 2003: IOC selects Vancouver/Whistler to host 2010 Winter Olympics.

April 2006: Millennium Group outbids better-known Concord Pacific and Wall Financial to build the village, offering the city a record $193-million for the 2.6-hectare city-owned False Creek development site. Millennium expects to spend $750-million, borrowed from Wall Street’s Fortress Investment Group, to develop 1,100 units, including 200 for rental and 250 for social housing.

Oct. 2007: Millennium pre-sells 222 of 737 available condos ranging in price from $600,000 to $3.4-million. Some of those pre-sale buyers are currently in court trying to get out of the deals.

Oct. 2008: Leaked documents show city council unanimously agreed to lend $100-million to the development to ensure it be built prior to Olympics. The city is liable for delivering the village on time.

Nov. 2008: Issue becomes political hot potato during lead-up to civic election, which ends in landslide win for Gregor Robertson and Vision Vancouver on Nov. 15, 2008. Pundits say the controversy played role in demise of the NPA and its mayoral hopeful Peter Ladner.

Jan 2009: Fortress tightens loan conditions on cost overruns, which Millennium can’t meet. Fortress cuts off funding and city starts process to step in.

Feb. 2009: City votes unanimously to bail out project to ensure completion.

Dec. 2009: Olympic Village completed after city agrees to buy out Millennium’s borrowings.

Feb. 2010: Olympics held.

May 2010: Millennium starts trying to sell 450 remaining units with little luck.

Sept. 2010: Millennium now owes the city $740-million and has sold just 259 units with almost 500 unsold.

Oct. 2010: Millennium defaults on $200-million it owed the city, only paying $192-million.

Nov. 2010: Millennium unable to meet payments and a receiver is appointed with the city owed $740-million. Total project cost was just over $1-billion.

OTTAWA -- Canada's housing market should return to "more normal" conditions this fall following a summer slowdown, a report from real estate firm Re/Max said Tuesday.

The company, which overseas real estate agents throughout the country, said despite some improvement in the housing sector this fall, sales in most markets are unlikely to return to the brisk pace seen late last year.

Re/Max said the threat of higher interest rates, stricter mortgage regulations and new harmonized sales taxes in Ontario and British Columbia - elements commonly cited for recent sluggishness in residential real estate - had just a "nominal impact" on the housing market.

"Economic uncertainty played a much greater role on softer housing conditions over the summer months," the company said in a statement.

But despite slower overall sales in recent months, Re/Max said demand remained high for luxury homes. It said sales of "upper end" homes were up at least 20 year cent, year-to-date, as of August in all the 19 major markets it tracks.

For this period, Re/Max said home sales are up in more than half the markets, and prices have risen in all. The highest average home prices were seen in Vancouver ($667,227), Toronto ($430,055) and Victoria ($495,993).

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• Community Centre
• Full-size gym
• Games room
• Arts and crafts room
• Aerobics studio and fitness centre
• Multipurpose rooms
• Dock for non-motorized boats
• 69-space daycare and outdoor play area
• 6,000 sq. ft. of commercial /restaurant space
• Underground parkingwill be developed

• More than 5,000 residential units
• Mid-size grocery store and community serving retail/services
• Full-size community centre
• Non-motorized boating facility
• Three to five licensed childcare facilities
• Two out-of-school care facilities
• An elementary school
• Interfaith spiritual centre
• Restoration of five heritage buildings
• 10 hectares of park land, including habitat, playgrounds and opportunities for urban agriculture

•  181 Athletes Way - Olympic Village
• 151 Athletes Way - Olympic Village
• 1616 Columbia - Olympic Village
• 181 W. 1st Ave. - Olympic Village
• 123 W. 1st Ave. - Olympic Village
• 1661 Ontario - Olympic Village