Concerns are being raised that the financial crisis in the United States could have an impact on major B.C. projects, including those that are tied to the 2010 Winter Olympic Games.
A Vancouver mayoralty candidate fears taxpayers might be on the hook if developers of the massive southeast False Creek development run into trouble.
The Millennium project includes one of the athletes' villages for the 2010 Olympic Games.
CTV is being told that the $1 billion development is on time. But like most major construction projects, it is over-budget by more than 6 per cent.
Now Vancouver mayoralty candidate Gregor Robertson is concerned the credit crunch in the U.S could hit Millennium.
The project is being financed by Fortress Investment Group, a New York-based private equity company.
And even though Millennium is the developer, the city of Vancouver has made a pledge to the 2010 organizing committee that the athletes' village portion of the project will be finished by this time next year.
But Robertson's fear is that if the cost overruns continue and the financing falters, the city could be on the hook.
"The city is obligated to deliver the athletes village in False Creek by November 2009,''said Robertson.
"So we will obviously have a financial obligation to see that through. Whether or not we are truly responsible for the exposure that's created by problems with the developer and the financing is not clear," he said.
"Ultimately the City is responsible for delivering the village, that's for sure,'' added Michael Flanigan, director of real estate services for the City of Vancouver.
But Flanigan said Fortress has affirmed its commitment to this project.
"They've confirmed their ability to continue funding and have the resources to see the completion of the village."
So as far as the City is concerned, this project is on solid ground.
But concerns about this project will no doubt continue to be raised during the civic election campaign.
With a report by CTV British Columbia's Mike Killeen.
