Almost $1.5 million has been set aside for sales and marketing of the athletes’ village project, according to the revised business plan released this week.
That shows just how important it is for the municipality’s Whistler Development Corporation (WDC) to sell the housing units prior to the 2010 Games. If it doesn’t it could be on the hook for millions and millions of dollars.
“I’m always worried,” smiled WDC chair Eric Martin, at Saturday’s open house, despite the healthy turnout of people.
“The only challenge is — it’s a lot of product.”
The latter half of 2010 will likely see more employee housing product released to the Whistler marketplace than ever before. Roughly 250 units at the athletes’ village will become available for occupancy in the wake of the Games, likely staggered over a two-year period.
At the same time, however, the Rainbow employee development could be releasing some of its more than 200 units to the marketplace.
That competition isn’t lost on the athletes’ village developers. Working to the WDC’s advantage, however, is the fact that there’s a secure move-in date and a firm price point to entice residents.
Neither of those things are set in stone with Rainbow.
That was not lost on some of the 200 people who turned out for an open house at Whistler Secondary School Saturday.
“My confidence in that place (Rainbow) being done in a timely fashion — zero,” said Dwayne Pryor.
Pryor and his wife have had their names on the Whistler Housing Authority (WHA) waitlist for the past four years.
Now they see an end to their wait. They are number two on the list for a two-bedroom townhouse at Cheakamus Crossing, the new name for the athletes’ village.
Pryor was appealing to developers at the open house to allow more room for parking in the complex he has picked out. Current designs only allow for four guest parking spots and two spots per unit.
And while they won’t be able to move into their home for another two years, there’s a sense of security and surety in knowing that it will be ready in the latter half of 2010 and that they’ll be paying roughly $231 per square foot.
At that price, Cheakamus Crossing is cheaper than existing employee housing units at 19 Mile Creek and Bear Ridge. On average those units are turning over for roughly $250/square foot, because at one point in time they were tied to a higher appreciation formula.
The definitive timelines also appeal to Judy Bonn, who is interested in one of the two-bedroom apartments specifically set aside for Whistler seniors. She too was originally interested in Rainbow and the Holborn development, both of which are set to deliver housing for seniors.
Delivery of the seniors complex at Holborn, however, has been pushed back to 2016, and the Rainbow development still does not have any set timelines associated with the delivery of the housing.
“I am very much inclined (to buy at the athletes’ village),” said Bonn, who has been renting a place at Tapley’s Farm since she moved to Whistler in June 2005.
Having the seniors grouped together in the top two floors of a four-storey apartment building is also very appealing.
“We are certainly a group of people who have similar needs and similar lifestyles,” said Bonn. “It’s nice to be with your peers.”
While several seniors were in attendance, the open house also
drew couples and young families, all looking to see what’s being offered for
sale this coming summer.
Martin explained that the $231 per square foot target is only possible with the large subsidies from the Vancouver Organizing Committee for the 2010 Games (VANOC), the municipality and some market housing. The province also provided the land to the municipality for the athletes’ village free of cost.
“This is unprecedented in Whistler,” said Martin. “(This) will never be done again.”
The revised business plan shows just how much money is flowing to the WDC in subsidies.
VANOC is kicking in $35.5 million, the municipality $11 million, and the sale of market units and lots is expected to bring in $20 million. The rest of the money will be raised through the sale of the employee housing units.
The idea is that the subsidies will allow the WDC to offer the employee housing at a price affordable to Whistler residents while breaking even on the $143 million development.
When asked how other development projects like Rainbow can compete with subsidies like that, WHA chair Gord McKeever explained that market housing makes up the balance.
“Rainbow’s got a bigger market component… which is meant to subsidize the site servicing,” he said at the open house.
Though Rainbow has yet to establish a firm price per square foot, McKeever said the developers are well aware of what Whistler residents can afford.
“The waitlist has been a much studied thing by all parties,” he said.
Rainbow’s developers did not return phone calls by deadline Wednesday.
While it is the biggest competition to the athletes’ village, Rainbow will offer different product, in particular single-family homes.
“We know that there’s a pent-up demand for single family,” said Mayor Ken Melamed, adding that the WDC couldn’t build single family at the athletes’ village because of the cost.
“If it’s (Rainbow) too expensive people simply won’t opt for it. There’s a clear financial incentive to keep their prices low.”
Marla Zucht, general manager of the WHA, said she has spoken to many people who are torn about their future options between the athletes’ village and Rainbow. Her answer at the moment is: “You know the athletes’ village is a sure thing.”
The waitlist for Cheakamus Crossing opened this weekend. There are now 50 people on the list. Those are people who are already on the existing waitlist.
And though he first balked at the idea of spending a lot of money on the marketing of the athletes’ village, Councillor Tim Wake said there is a need to get good information to Whistlerites so that they can make what will be a very important decision about their future.
If Saturday’s open house is any indication about how that marketing budget is being spent, he said it’s well worth it.
“I’m comfortable (with the marketing budget) because of the way that meeting went on Saturday,” he said.
The marketing budget has been reduced by half since the first business plan.
To learn more about the development go to www.whistlerdevelopmentcorp.ca
