Vancouver View -- Budget Cuts, Village Troubles, One Year to Go

VANOC CEO John Furlong (left) says the athlete experience will not be affected by the budget cuts.(ATR/B.Mackin)Budget Cuts Ahead from Vancouver

The worldwide economic recession strikes the budget for the Vancouver Olympics. Cuts across the operations of the Games are set to be announced next week.

The new budget remains “in the ballpark” of the $1.28 billion May 2007 operations budget, the last public estimate of the Games budget, says CEO John Furlong. He spoke at a press conference following a meeting of the VANOC board where the budget cuts were approved.

Furlong said “the athlete experience is completely protected.

"We're doing everything we can to make sure what goes on in the venues and the sport aspect and what people see on TV is exactly what they'd expect to see,” Furlong said.

Dave Cobb, executive vice president of revenue, marketing and communications said the look of the Games could be scaled back and publications that would have been printed in color will be in black and white or delivered online instead.

“A lot of our different stakeholder groups are not going to necessarily receive what they have at previous Games,” Cobb said.

Cobb said the IOC supports the austerity moves because “they don’t want our Games to run a deficit.”

Budget cuts mean the Whistler Celebration Plaza won’t be a satellite medals presentation venue for Nordic sports, sliding and alpine skiing. Medals will be awarded at venues, but athletes will make on-stage appearances during concerts at the Whistler Village site.

“Doing it in a more informal way might be a more fun experience for the crowd and athletes and it removes a lot of the obligation we have from a cost perspective,” said Executive Vice President of Service Operations Terry Wright.

Sponsor News: New Sponsors, Nortel Troubles

VANOC has signed $591.3 million of sponsorships and is nearing the $597.8 million target said Cobb at the Wednesday press conference. He said four or five parties are in talks for $2.3 million deals. Landowners Concord Pacific and Canadian Metropolitan Properties are two prospective sponsors. VANOC wants to use their properties near B.C. Place Stadium and General Motors Place for storage, staging and logistics.

Bankrupt sponsor Nortel may deliver the telecommunication gear needed by VANOC for the Games, but the company is not likely to spend much on activation Cobb said. Nortel is one of thousands of creditors listed in the Nortel Networks bankruptcy protection case filed recently in Delaware. The amounts were not included in court documents, but Cobb said VANOC is owed between $786,000 and $4 million by the Toronto-based A work stoppage looms in February at the nearly complete Olympic Village unless new financing is found. (ATR/ B. Mackin)company.

Village Construction Behind Schedule

VANOC chairman Jack Poole admits the financially challenged Olympic Village is generally behind schedule.

The city has funded construction since mid-October after lender Fortress Credit Corporation stopped paying developer Millennium. It could be liable for the entire $786 million cost. The Vancouver City Council delayed a vote Tuesday on using a $22.7 million deposit from the developer to prevent a work stoppage next month. The city is seeking $360 million in new financing for the project.

"This is the heart of the Olympics, this is the showpiece, it must be complete and will be complete,” Poole said. “We have a high level of confidence and there is no plan B.

“Our one and only concern is to see the workforce ramped up on site and see that project get back on schedule.”Jack Poole (left) and Executive Vice President of Revenue, Marketing and Communications Dave Cobb. (ATR/B. Mackin)

Poole said the VANOC finance committee would monitor the project and report every two weeks. Nov. 1 is the date for VANOC to assume temporary possession of the village.

Poole, an expert on real estate development, is chairman of Concert Properties, a leading company in Vancouver. Poole’s firm withdrew from bidding to build the village to avoid conflict of interest charges.

Concert CEO David Podmore is one of 10 development industry executives announced Tuesday by Mayor Gregor Robertson on a volunteer advisory committee named to rescue the village.

One Year Events

The one-year-to-go date to the Olympics will be marked with the unveiling of the torch design and a visit by IOC President Jacques Rogge. As is the custom, the IOC president will conduct a brief ceremony during which the invitations to attend the Games are dispatched the world’s national Olympic committees. A concert the night of Feb. 12 at the Queen Elizabeth Theater will feature Grammy-winning singer/songwriter Sarah McLachlan.

Board Meeting Rules Adjusted

Directors amended bylaws to allow board meetings with only 24 hours notice and a smaller quorum. Meetings will remain closed from the public and minutes secret, as is the practice.

Chairman Jack Poole says agendas and decisions would be published.

“We’ll treat it exactly the same as we do now,” Poole said.

The changes to the meeting notice rules will give the board more flexibility to meet quickly to respond to emergencies or other crises that might pop up as the Games quickly approach.

With reporting from

Bob Mackin in Vancouver.

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