Anyone in Whistler who has followed the 2010 Olympics with even a thimble of interest knows that the athletes’ village is being built on donated Crown land next to the former landfill site, across the highway from Function Junction. They also know that most of the athletes’ village will become resident-restricted housing after the Games.
Most of these basic facts have been part of Whistler’s Olympic plans for years. A few other details about the Whistler athletes’ village have been championed repeatedly: the village will use a district energy system, drawing heat from Whistler’s sewage treatment plant; the buildings will be built to LEED standards; the whole project will be spearheaded by the Whistler 2020 Development Corporation; and keen followers may know that the projected cost for the whole athletes’ village is about $130 million.
Less well known is the fact that VANOC is only putting up a fraction of the $130 million. Whistler is responsible for most of the costs, and figuring out how to finance the project has been a challenge.
Whistler couldn’t make the numbers work until it received permission from the provincial government to make some of the free Crown land available at market prices. The sale of a limited number of single-family lots at market value is now an option Whistler has to help finance the project.
But due to ever-rising construction costs, multiple partners and the sudden frenzy to get the athletes’ village built, getting detailed, up to date information on the project is about as simple as nailing jelly to a wall.
The athletes’ village was originally supposed to house about 2,400 athletes and officials. Whistler would provide beds for about 2,050 and VANOC would provide another 350 beds in its athletes’ centre within the athletes’ village. Then, two years after the Games were awarded, the IOC decided the athletes’ village needed an additional 600-800 beds. Whistler said it wasn’t going to pay for them so last week a Partnerships B.C. report suggested VANOC would dip into its contingency fund and put up $25 million for the extra beds. That figure has yet to be confirmed.
VANOC is responsible for most of the athletes’ centre, which will consist of three buildings: a 20,000 square foot high performance gymnasium with a weight room, meeting space and offices; a 98-room lodge capable of accommodating 200 athletes; and townhouses that will provide another 150 beds. Following the Games the athletes’ centre will be operated by the Legacies Society, the group that will also be responsible for running the Nordic centre and the sliding centre. The gym will be used by local and visiting athletes and the 350 beds will be made available for athletes visiting Whistler to train or compete.
This is where the jelly starts to hit the wall.
Earlier this summer VANOC confirmed the $16 million budget for the athletes’ centre was about $6 million off. The estimate last month was about $22 million for the gym and the lodge. VANOC could not confirm the townhouses were included in that estimate because it said the construction contracts were still being negotiated and awarded.
Regardless, within the revised estimate the price of the gymnasium had jumped from $6.3 million to $11.45 million. At the time Whistler council approved the development permit for the gymnasium, on June 5, Whistler was contributing $2 million to build the facility, because it will be made available to local organizations and athletes. In mid-July, a few weeks after the development permit was approved, the revised estimates came out and Whistler was asked to contribute an additional $1.65 million. Council agreed, although apparently there were some heated discussions in camera.
At the same meeting that the additional money for the athletes’ centre gymnasium was approved council expressed its concerns about the long-term viability of the centre. The motion to approve the additional funds included the statement: “That the support of council be subject to the recognition that council has very serious concerns on the viability and ongoing operating costs for the Athletes’ Village High Performance Centre.”
Financing the rest of the athletes’ village has also been a challenge. One of the innovative ways Whistler and its 2020 Development Corporation have tackled that is by bringing in partners, including Hostelling International and the Whistler Housing Authority.
But at Monday’s meeting, for the second time, council approved a development permit for a building in the athletes’ village before the cost to Whistler taxpayers was finalized. The WHA building will provide much-needed rental housing — after the Olympics are over. The latest estimates show the 55-unit building will cost $6 million. After persistent questioning from Councillor Eckhard Zeidler it was revealed that half of that budget will come from the WHA’s reserves, $2 million will be financed through mortgages and the WHA will be making a request to council for the final $1 million — again, after the development permit has been issued.
Whistler is committed to the athletes’ village, and following the 2010 Olympics the village will provide much-needed housing for local residents. But the incremental increases — if millions of dollars can be considered incremental increases — that Whistler taxpayers are now expected to pay for have got to stop. Development permits have been issued for the first five complexes in the athletes’ village and two of them require additional money from Whistler.
Also disturbing, as we await additional development permit applications, is the statement from VANOC this week that it fully expects to exhaust its contingency fund.
