Mountain rental costs for Olympics could rise, NDP warns
Last Updated: Wednesday, February 11, 2009 | 7:32 PM PT
The Canadian Press
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The deal to rent Whistler and Cypress mountains for ski events for the 2010 Olympic Games remains in limbo, and B.C.'s New Democrats are concerned taxpayers could get snowed with the Games just one year away.
NDP Leader Carole James said Wednesday that rental costs could inflate as the Games approach, and she is concerned the global economic troubles could affect the New York equity company that owns Whistler.
Fortress Investment Group LLC, which owns Whistler operator Intrawest, has seen its stock price drop to about $1.65 from a high a year ago of $16.
"We're now a year away and we don't have an agreement in place and we're negotiating with a company that's in trouble," James said.
"It doesn't seem to me that Colin Hansen [minister of finance and the Olympics] put taxpayers in any kind of good position.
"You can't move the Olympics. I found it incredible once again, whether it's the Olympic Village in Vancouver, whether it's this rental agreement, whether it's security costs, this minister doesn't have a clue what's going on."
The City of Vancouver was given authority last month by the B.C. government to borrow hundreds of millions of dollars to complete its waterfront Olympic Village project after it ran into financing problems.
B.C. Finance Minister Colin Hansen said Wednesday that negotiations for the rentals of the two mountains during the 2010 Olympics are still in progress.
The Vancouver Olympic organizing committee is negotiating the deal with the operators of the mountains, and everything is progressing normally, Hansen said.
"I've got every confidence that they will handle this issue."
The organizing committee's budget is funded through sponsorship and broadcast agreements and there is little public money involved, he said.
Last October, Fortress allowed Intrawest to refinance a $1.7 billion debt, amid speculation the hedge fund would not be able to close the deal in the current world financial climate.
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