Saturday, January 17, 2009

Nanaimo Millennium Hotel

Let Sleeping Dogs Lie

Is City Council Listening?

The following opening paragraph in a recent Vancouver Sun article says it all:

"The essential error that led to the Olympic Athletes' Village debacle was made in April 2006, when city staff recommended that council select Millennium Properties Ltd. as the developer."

Another telling paragraph in this article concludes:

"It's now clear that no firm financing arrangements were in place. It wasn't until June 2007 that financing details emerged. City staff told council that Millennium was proposing to borrow the entire $750 million to finance construction. The only equity it had in the deal was the $29-million land deposit. This amounted to just three per cent of the nearly $1-billion total cost."

If the current City Council and staff are still serious about engaging Millennium to build the PNC hotel project, the citizens of Nanaimo are in for a rough ride!

Why would you enter into an agreement with someone who had not demonstrated the ability to finance a project?

The complete Sun article can be seen using this
Nanaimo Info LINK.

UPDATE: June 16, 2010, City sues Millennium for $3 million. Click here for details.

Editor's Comments: A skeptical person could be forgiven for thinking that a company like Millennium might have sent a few Christmas hampers to those responsible for getting the City involved with such a poor deal in the first place.


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