Vancouver officially went shopping Thursday for new financing to complete construction of the massive Olympic athletes village.
City councillors approved a report from their director of finance suggesting that Vancouver take over the remaining cost of getting the village built on time for the 2010 Winter Games.
The project's original lender stopped payment on its loan to developers in the fall and the city had the choice of trying to renegotiate with them or take over the development.
The report to council said assuming control would save on sky-high interest costs and would ensure Vancouver meet its commitment to the 2010 Olympic organizing committee to complete the village on time.
The city's approval of the report wasn't without criticism from residents and activists, including some who are convinced that taxpayers will be left with the bill for the billion-dollar development if the units can't be sold at the right price.
After the report was approved, Mayor Gregor Robertson said the city is "turning a corner now."
"We've been hard at this for the last month. We got the authority from the province and we have the tools we need," he said, referring to the B.C. government's amendment to the Vancouver Charter giving the city the authority to seek other means of financing the village.
"Negotiations are proceeding and I think we're going to be able to come through this in a much better position than in recent weeks," said Robertson.
"We have to make sure we have a good strong financing arrangement."
Chris Shaw, an activist with 2010 Watch, spoke to council during debate on the report, calling the village construction problems "a scientific experiment gone bad."
Shaw, who has criticized numerous Olympic issues, suggested that the athletes village take on a higher component of social and affordable housing after the Olympics to ease the problem of homelessness.
He urged councillors to approach the provincial and federal governments for financing, selling the idea as a significant way for those governments to deal with homelessness.
Garth Mullins, another activist, told council that the last time he spoke in chambers he was "forcibly removed," but promised that wouldn't happen this time.
He also urged a higher "social housing component" for the complex when it's returned to the city after the Olympics.
The council also approved an item that would provide stronger powers for bylaw enforcement officers during the Games to control advertising and signs.
Some speakers expressed fears that such expanded powers might impose limits on their Charter rights to protest and carry signs opposed to the Games.
However a third Olympic issue passed by council was aimed at protecting the civil rights of inner-city residents.
The city will "urge" the Vancouver Organizing Committee and its Olympic partners to fulfill a promise made when Vancouver won the bid to consult with inner-city neighbourhoods before any rules are passed regarding security or other regulations that might affect their movement during the Games.
The go-ahead on village financing came through a report by city finance director Kenneth Bayne that suggested the city borrow the remaining $450 million needed to finish the village as well as advance the next construction payment due to developers.
While the remaining cost to finish the village is $450 million, there was no restriction in the legislation on how much the city can actually borrow and it was also given the option to explore other types of financing, such as issuing bonds.
The costs of the $1 billion project, which will house 1,100 athletes during the Games before being converted to private housing, breaks down into $193 million for land, $750 million for construction and $125 million for cost overruns.
The city still owns the title to the land and the project's current lender, Fortress, has paid out $317 million on the initial construction loan.
Fortress stopped payment in September and the city has been covering construction cost since then through a $100-million loan to the developer.
With files from The Canadian Press
