DEVELOPER MILLENNIUM GETS $100 MILLION BAILOUT FROM CITY OF VANCOUVER

OLYMPIC VILLAGE DEVELOPER
GETS $100 MILLION FROM CITY

It is reported by the CBC that the City of Vancouver has loaned the developer of the Olympic Village $100 million to help the financially troubled company.

This is the same developer the City of Nanaimo has an agreement with to build the hotel adjacent the new conference center in downtown Nanaimo. The hotel was to have been started by the end of May but there has been one delay after another so far. I would speculate there is no reason for Millennium to walk away from the deal, and the current Council seems to have been unwilling to cancel the contract an look for another developer.

Elsewhere on this blog you can read what the Council candidates have to say about this agreement with Millennium and what they would do to resolve the matter.

It is reported that the developer Millennium Development Corp. is facing $60 million in cost overruns on this project.

While the details of the arrangement are not being made public a City of Vancouver spokesman said it was the responsibility of the City to see the Olympic Village was completed on time. This was all a part of the agreement which resulted in British Columbia being host for the Olympics.

This of course leaves the City little alternative but to bail out the developer to see that the project is completed.

Whether the new Nanaimo City Council should continue there association with Millennium is one of the hotter topics during the current election campaign.