Vancouver Mayor Sam Sullivan's dream of waving the Olympic flag from his wheelchair during the 2010 Olympic Games has been shattered.

In a surprise move, Sullivan's party -- the Non-Partisan Association -- voted  to dump Sullivan and make two-term NPA councillor Peter Ladner its nominee in Vancouver's upcoming mayoralty election in November.

The razor-thin vote -- 1,066 for Ladner and 986 for Sullivan -- has rattled the party, leaving the NPA with deep divisions as they head towards November's civic election.

"I'm feeling a mix of shock and elation and a bit of grief," Ladner told CTV News shortly after the vote was announced on Sunday

"It's not easy to do this and have a contest because someone has to lose," he said.

But Ladner said he wasn't worried about facing a divided party.

"If you remember this room three years ago, when Sam (Sullivan) defeated (former NPA mayoral candidate) Christy Clark, people were saying that the divisions were huge. But we went on to a majority. That's my goal to do it again," he said.

Political observers say the very fact the race happened is bad news, showing a party to be split and vulnerable.

"Regardless of who's going to win it's going to be very divided," said CTV's political blogger, Alex Tsakumis, before the votes were counted. "If Peter's people win, Sam's people will bolt. If Sam's people win, Peter's people will bolt."

� Related: Read more about the race with ctvbc.ca's political blog, Front and Centre

But NPA Councillor Kim Capri told CTV News before the votes were counted that the party would be unified.

"Definitely it's been a tough ride to get us to this place, but I really feel confident that on Monday you're going to see a united NPA team," she said.

Sparks flew in divisive campaign

Sparks flew during the campaign, much as they did during the two candidates' debates last week, where Ladner said that he was the one that could carry the NPA to victory in the municipal election in November.

"That's why I'm running...The NPA can't win under Sam's leadership," Ladner declared last week.

The mayor's support comes from his tight hold on his constituents, who he "intimidates" so they will remain loyal, said Ladner.

"They don't want to be seen to be offside with [Mr. Sullivan], who's known to be vindictive at times," he said.

But the mayor blasted Ladner, saying that the two-term councillor had received no endorsements from anyone else at city hall.

"Councillor Ladner has no one," he said. "Every single NPA councillor who sits with (him and me) at the caucus table every week, who knows our style, has endorsed me, and said that I am the one to lead them into the next election."

Whoever wins November's election will be mayor in Vancouver when the city welcomes the world for the Olympics.

Rival party Vision Vancouver will select its mayoral candidate next Sunday. Provincial MLA Gregor Robertson, Councillor Raymond Louie and Park Board Commissioner Allan De Genova have all thrown their hats into the ring.

Councillor David Cadman of the Coalition of Progressive Electors has also expressed interest in running.

The nomination contest was held at the Marriott Pinnacle Hotel at 1128 Hastings Street.

Any NPA member was eligible to vote as long as they live in Vancouver or own property in the city.

Party members were also be asked to nominate candidates for city council, park commissioner, and school board chair.

Peter Ladner was first elected to council in 2002. The 59-year-old grew up in Vancouver's upscale Shaughnessy neighbourhood -- his family having given its name to the Vancouver suburb of Ladner.

He's also an avid athlete and has had a string of successful careers as a professional journalist and an entrepreneur, to name two.

Ladner says he has four goals: To make Vancouver the safest, greenest and most affordable city in North America -- and globally competitive.

But he's not without opposition.

"Peter has an identical record as Sam Sullivan, voting against affordable housing, against green initiatives," said Robertson.

Louie says the NPA has done a terrible job in the City of Vancouver.

"(Citizens) are not looking for a change in leadership within the NPA, they're looking for a change at City Hall," he said.

The road ahead of Ladner is definitely bumpy -- and he'll have to work hard to heal the rift in a party left divided by a leadership campaign.

With a report from CTV British Columbia's Stephen Smart