Skip to content
Join our Newsletter

AG’s report raises questions for Whistler

By Bob Barnett It’s important to remember that Acting Auditor General Arn van Iersel’s report on the 2010 Olympics is, as its subtitle states, “A Review of Estimates Related to the Province’s Commitments.
By Bob Barnett

It’s important to remember that Acting Auditor General Arn van Iersel’s report on the 2010 Olympics is, as its subtitle states, “A Review of Estimates Related to the Province’s Commitments.” That is, it’s a look at what the province, as the final guarantor of the Olympics, and by extension, provincial taxpayers, could be on the hook for.

The most immediate and sensational story to come out of the acting auditor general’s report last week was his statement that the Sea to Sky Highway upgrade, the RAV line and other Olympic related projects should be considered Olympic costs, and thus the full cost of the Games, at this time, is an estimated $2.5 billion. The argument about whether those costs should be included in the Games costs may continue for another 10 years, but van Iersel also shed some light on things that Whistler, in particular, should be concerned about.

At Saturday’s very successful celebration to unveil the Paralympic logo, VANOC board chair Jack Poole told the crowd that construction of Olympic facilities is on time and on budget. And at this point one would have to agree. But a more relevant question for Whistler is: What compromises are being made to make sure that happens?

Quite correctly, VANOC’s number one priority seems to be delivering the Games on time and on budget. But as van Iersel’s report shows, in an era of rising construction costs and with time starting to wind down, post-Games plans have become a secondary consideration.

Take, for instance, the Whistler Legacies Society, which has not yet been formed but which will own and operate the Whistler Nordic Centre, Whistler Sliding Centre and Whistler Athletes’ Centre following the Games. The society could include representation from the federal, provincial, Whistler and Vancouver governments, the Canadian Olympic Committee, the Canadian Paralympic Committee, VANOC, and the Lil’wat and Squamish Nations. The society will start with a $110 million operating trust to cover operating losses at the facilities. The province has committed to giving the society favourable lease terms for the Crown land the facilities are on.

According to van Iersel, any losses incurred by the Nordic centre, sliding centre or athletes’ centre in their post-Games operations will become a provincial cost, after the $110 million trust is used up. This, in fact, is what has happened with the 1988 Olympic ski jump facilities in Calgary.

Van Iersel wrote: “Business plans have been developed by VANOC to assess the future operating costs and revenues of the Whistler Sliding Centre and Whistler Nordic Centre legacy venues. The post-Games business plan for the Whistler Nordic Centre recommended add-on options such as additional trail development, a sizable day lodge, and food and beverage concessions so that post-Games revenues could be maximized. However, in the latest cost estimates of VANOC, the total length of trails has been reduced from 75 kilometres to 26 kilometres and the area of the proposed Nordic day lodge has been reduced to reduce capital costs. This will affect the ability of that venue to generate the revenues anticipated by the post-Games business plan. ” (italics added )

So it’s in the provincial government’s interest, provincial taxpayers’ interest and Whistler’s interest to make sure the facilities are as economically sustainable as possible after the Games. And if at some point after the $110 million trust is used up the facilities are losing money, what is the province going to do with them? Again we only have to look at Calgary to understand there isn’t a huge market for ski jumps or bobsleigh tracks.

The reduction of the Nordic centre trails came about as concerns were raised by the Squamish Nation about some of those trails cutting across sacred lands. Some backcountry tour operators also had concerns. To expedite development of the Nordic centre VANOC looked at minimum trail requirements for the Games and decided to make-do with that. Additional trails after the Olympics are still being considered but are not a priority right now.

But van Iersel warns “the cost to scope in these changes after the Games may be significantly greater than if they were included in the venue construction phase.”

And who would pay for additional trails and facilities after 2010?

Of course, few people know what the Squamish Nation’s plans are for the Callaghan. The shared legacies agreement says the First Nations’ 300 acres of Crown land could be used for a variety of developments “including but not limited to a golf course, a lodge facility and a campground.”

Later in van Iersel’s report he states: “The First Nations are being given this land without restriction on its potential future use. Because this land will be the site of the Whistler Nordic Centre for the Games, a paved road is being built by the Province. This road, which will allow for future access into this currently remote area, will add significantly to the value of the land.”

Most of this land is under the jurisdiction of the Squamish-Lillooet Regional District, an organization that will not have representation on the Whistler Legacies Society, as things stand now, and which is at loggerheads with the Resort Municipality of Whistler. It’s possible Whistler will be granted its requested boundary expansion so that the Nordic centre moves within RMOW boundaries, but you might have better odds buying a lottery ticket.

Van Iersel’s report raises more than a few questions for the province about operating Olympic facilities after the Games. Whistler, the SLRD, the Squamish Nation and all the other organizations that may be represented on the Whistler Legacies Society should also be asking questions.