The Olympic Village in False Creek,once forecast to yield millions of dollars in profit, is mired in multimillion-dollar cost overruns.No Olympic-sized profits will be coming from this project, says The City of Vancouver.
Vancouver Mayor Gregor Robertson said the best-case scenario is that the city will break even on its sizeable investment.
"If the market does bounce back, and it's strong, and we are able to sell all these units in the next year or two, we could recoup our costs and break even on this project," Robertson told a city hall news conference.
Originally the Olympic Village to be completed for $950 million, including the high-priced False Creek land it sits on. Now, the total price tag is expected to balloon to almost $1.2 billion by 2013.
The city's auditor's report pointed to a failure of "due diligence "on the part of city staff when they selected Millennium Development to build the 737-unit project. Specifically, the city did not determine if Millennium had the financial capacity to deliver on such a large-scale development.
However, City manager Penny Ballem's explanation points in a different direction:
"Procurement in the city is done by different departments, different agencies, and there is no standard process. And all of that is in the process of being changed," Ballem said.
The old adage seems to ring true:
Too Many Cooks Spoil the Broth!
Read the original article.
Olympic Village costs could erase profit - Sports - MSN CA
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