EDITORIAL | Journalists Continue to Spin Olympic Village

The Olympic Village represents a “fiasco,” but more and more it’s turning into a fiasco of journalism. Prominent columnists have spent the last week trying to convince readers of a financial disaster at the Olympic Village, but the real disaster is that they’re not telling it like it is. Due to the removal of hundreds of units of social housing, the city stands to break even on the project, and perhaps even gain money.

The discussion revolves around the cost of the land on which the Olympic Village sits, bought by the city for $30m. That $30m was paid in full by the developer in 2006. By all standards the city has no liability on the land. There is no loss and no profit because costs have been recovered, net zero. End of the story one might think.

But today in the Globe and Mail, Gary Mason argues that while there is no actual loss, the loss nontheless is “actual” because it “feels like a loss.” According to Frances Bula, also with the Globe, there is therefore “$180-million unpaid amount owing on the land.” But did nobody tell Gary Mason and Frances Bula that the land was given back to the city months ago? How can money be owed on something if that something was returned? – and returned with a $30m fee paid by the borrower.

Community Unanimously Against Mount Pleasant Tower

The results from the March 20th hearing were displayed last night at a City-hosted open house. The Heritage Hall on Main Street was full of concerned citizens giving feedback on the modifications that City staff have since made to the Rize Development’s rezoning application. Most of the changes had to do with the height and scale of the building. What had been a 26 story tower has been downsized to 19 floors. The massing has been decreased on Watson and 10th Avenue, but increased on the side facing Broadway. A huge majority of residents said that a building between 6 and 12 stories would be more appropriate for the location – the smallest option on the City’s feedback forms. The drop in height reduced the density from 6.44 FSR (Floor to Space ratio) to 5.33 FSR. This is still significantly higher than the standard 3 FSR for the neighbourhood. Another new development containing social housing was talked down at City Hall from 11 stories to only 8 last July.

The massing and form are now set to be similar to those of the Lee Building on the North-West corner of Broadway and Main. The developers have been trying to spin this new tower as becoming the “signature” building for Mount Pleasant, but most see the historic Lee Building as already filling that role.

While the City has lowered the building by a few floors, as proposed it is still almost twice as tall as anything else around the Main and Broadway hub. To meet the concerns of the community, the development will still have to change significantly. The City will also need to find a way to address the neighbourhood’s affordability concerns. As it stands the development would still be very detrimental to the socio-economic makeup of Mount Pleasant.

Most of the residents were also against the Community Amenities and Benefits that had originally proposed. People are concerned that even the STIR (Short Term Incentives for Rental) housing would not be affordable to people who currently live in Mount Pleasant. STIR units rent at market rates. Mount Pleasant has traditionally been an affordable, working class neighbourhood, and STIR rent in a luxury tower would likely be much higher than most in the neighbourhood could afford. In combination with the market rental, some community art space and public art have also been proposed to compensate the community for the developer’s gains from rezoning. Many were concerned that the proposed artist space would be too expensive for artists, and that artists are finding it increasingly difficult to afford to live in the neighbourhood.

At the open house, there was an opportunity for residents to express further concerns. The sense in the room was that 19 stories is still much too high. Height is being framed as the major issue for this development, but there are also serious concerns about who will be able to afford living in Mount Pleasant. Residents are worried that this development will have a domino effect, leading to further large luxury condos being built in the neighbourhood.

The council meeting for this development has not yet been announced. More information is available on the City’s website for the rezoning here.

City seizes Millennium assets, anticipates over $100M in profits from social housing sell-out

The City of Vancouver announced Friday that it has seized numerous assets owned by the Olympic Village developer, Millennium Development, including 32 properties worth $50M and other assets valued at around $10M.

The City is owed $575M by Millennium for the Olympic Village construction loan. But City staff said Friday that after seizing Millennium assets, they now anticipate recouping a total of $725M. This means that the City plans to make $150M profit even after the construction loan is paid off.

The original 2005 Official Development Plan for the Olympic Village called for 2/3rds of the housing to be “affordable” (over 733 units out of 1100), half of which would be social housing (366 units). To that end, the City negotiated that Millennium would pay the City another $200M for using the City-owned land on Southeast False Creek. About $30M of those land-profits were already paid to the City, and in April 2010 the City invested approximately that amount ($32M) into the remaining non-market housing, although the number of these had been drastically reduced. But now that the City anticipates accumulating another $100M – $150M profits, there are no plans to invest them into meeting housing promises at the Olympic Village, or anywhere else in the City.

For now, the corporate media is parroting the nonsensical line that the City will “lose” $40M – $50M on the project (see CBC and TheSun), but it would be much more accurate to say this: whereas the City originally hoped for $200M in profits from the land lease, to be used for meeting Olympic Housing Legacy, now Gregor Robertson plans to make around $150M profit, but not re-invest it.

Five Shelters to be Closed

B.C. Housing has declared that by the end of the month at least five shelters will be closed throughout Vancouver.* According to the province, the closures are justified because the Station Street housing project has opened this spring. Station Street contains 80 already-full units of housing, but is apparently enough to compensate for the couple hundred people who will be made homeless when the shelters close.

It is significant that Station Street is being used as a basis for closing shelters, because as a perpetually-delayed project Station Street is at the heart of the Vancouver housing crisis. The construction of the Station Street housing was promised in the 1990s but killed by the BC Liberal government when elected in 2001. After one full decade of a freeze on the construction of social housing, combined with frozen welfare rates and a frozen minimum wage, Station Street will not be capable of housing the vast number of people made homeless in these past years.