(Source: Globe and Mail)
Vancouver wants to make sure that it is the banker for the Olympic village for the shortest time possible.
So to achieve this, the city is planning to set an interest rate that will encourage the private builders, Millennium Development Corp., to move quickly to get its own financing again. After months of revelations and uproar about the village’s financial problems, the city stepped in and became the lender to Millennium this February, buying out the U.S. hedge fund Fortress Investment Group after a period where Fortress refused to keep advancing money to the project because of cost overruns.
But the city would like to get out of that loan long before the last condo is sold at the $1-billion project.
“We are not a finance company,” said Ken Bayne, the city’s business-planning manager. “We need an inducement to get us out of this as fast as they can manage. We don’t want a situation where we finance Millennium indefinitely.”
Read Frances Bula’s full article “City nudges Olympic developer to repair its finances” in the Globe and Mail (May 19, 2009).