Note: The Issues for Discussion at the end of this case study may require research on the Internet. The sums of money mentioned are approximate, generally as reported in the media at the time.
Published here December 2016

The Project Concept | Project Development Highlights | Property Highlights
Sales Highlights | Project Financials | Case Study Assignments

Project Financials

As one reporter observed:[4] "And then we came to the final funeral of the patient as the last 67 suites were sold in a bulk deal for $91 million, funnily enough, just before the upcoming 2014 election."

The final tally indicated that:

  • Only $70 million was recovered on the remaining $170 million owed by the developer on the original land purchase from the city.
  • Therefore, taxpayers lost about $100 million directly attributable to all the delays at the project's inception, followed by the things that the Mayor had said to harm the project's value.
  • As a matter of interest, that last $100 million could have built 1,000 social housing units, or bought the whole Arbutus rail corridor.[5]
  • FCPL, the original developer, suffered losses on the project estimated at $400 million — separate from the losses incurred by Vancouver taxpayers.
  • The final bulk purchaser paid $91 million to take direct control of the original development company, which included the 67 remaining suites that were worth about $71 million.
  • The remaining $20 million was paid to acquire the estimated $400 million in tax losses.
  • Consequently, Canadian taxpayers are now paying for the city's mistakes because about $104 million of otherwise payable income taxes — 26 per cent of $400 million — may never get paid.

In September 2014, City Hall functionaries attended a celebration dinner to congratulate themselves on their stewardship and final sale of the Olympic Village.

Sales Highlights  Sales Highlights

4. Notes by Email 10/1/14
5. Another controversial project in Vancouver
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