City gains $64.5m on SE False Creek project, yet housing promises remain uncertain

June 28, 2007

Vancouver – Documents obtained through a freedom of information request reveal that the City of Vancouver will make at least $64.5m profit on the SE False Creek development project, which includes the 2010 Olympics athlete’s village.

Other documents from the City confirm that the 250 units of “affordable housing” promised for the Olympic legacy may not include any housing accessible to people living below the poverty line.

Conrad Schmidt of the Work Less Party, who was involved in obtaining the documents revealing the profit levels of the project, said “These are the City’s numbers and they show that money exists…you have to wonder why these funds aren’t on the table for those who need it the most.”

A memo written by Jody Andrews, the project manager of the development, reveals that the anticipated profit of $50m is likely to reach $64.5m. An unrelated e-mail from Cameron Gray, head of the City of Vancouver’s housing department reveals that none of the 250 units of promised “affordable housing” are guaranteed to be available to people living below the poverty line, or on welfare, known as “deep core need” housing.

“We need housing for the homeless in Vancouver, and the Athlete’s village was supposed to provide 250 units for the poor,” says David Eby of Pivot Legal Society. “It’s very disappointing to learn that the 250 units that were promised are not guaranteed to be anything other than full-price rental units.”

The SE False Creek Project was designed by the previous city council to provide 1/3 market housing, 1/3 middle income housing, and 1/3 low income housing. The middle income housing was cut from the project by the Non-Partisan Association representatives on council, and the low-income housing was reduced from 33% of the project to 25%.

Concerns over the bidding process for the SE Creek development have been raised by 2010 Watch representative Chris Shaw, who has been investigating the Athlete’s Village project for more than a year and who uncovered the memo outlining the profits expected. “The City’s due diligence on the developer was minimal to non existent,” says Shaw. “2010 Watch has previously raised concerns about connections between Millennium and it’s sister company Armeco Construction whose chief officer is Paul S.O. Barbeau, a former president of Vancouver’s ruling NPA. The City simply asked Millennium if there was a conflict and Millennium said there wasn’t. That’s not due diligence in my books.”