It boggles the mind to think that anyone can possibly think of Olympics as doing anything more than throwing taxpayer money straight down the toilet. Of course vendors and real estate agents do not give a damn about the long-term consequences as long as a quick buck can be made.
Now it’s payback time as Vancouver taxpayers on hook for $1-billion as most Olympic Village units unsold
60-six per cent of Vancouver’s pricey Olympic Village condos remain unsold — a total of 483 units at the massive False Creek development that served as athletes’ housing during the two-week 2010 Games.
Vancouver Mayor Gregor Robertson, whose city remains on the hook for more than $1.03 billion of the cost of the project, predicts it will take a “full two-year term” to sell the remaining units.
The suites, which are priced anywhere from $400,000 to $5 million each, have been subject to the HST since July.
The city’s investment in the project includes a $750-million loan plus undisclosed interest payments, $120 million still owed to the city for the land and a $110-million outlay for 252 affordable housing units.
Today, six months after the 2010 Olympic Games, the village resembles a ghost town.
Walking down the empty streets last Saturday afternoon, it was hard to find anyone actually living in the $1.2-billion former Olympic Village.
Even the security guards conceded there’s not much to do at the “showcase” Millennium Water development, where only 254 condos have been sold.
Fortunately Chicago dodged a bullet as it was foolishly attempting to “win” the upcoming 2016 Olympics. In this game, winning the bid is a guaranteed loss for taxpayers.
Mike “Mish” Shedlock
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Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.
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