Hidden costs in details of Olympic contracts


Friday, April 14th, 2006

Kent Spencer
Province

The Vancouver Olympic Committee can even veto Vancouver’s choice of a name for the Athletes Village during non-Olympic periods.

A spruced-up Pacific Coliseum isn’t supposed to use its publicly-funded upgrade to scoop business away from GM Place after the Olympic Games.

That clause was revealed this week among the venue agreements that Vancouver has signed with the Olympic Committee.

“The city acknowledges there may be potential for the refurbished Coliseum to compete with GM Place . . . and GM Place’s ability to operate competitively may be impaired. The city agrees to consult with Orca Bay with the objective of ensuring a fair competitive environment,” one agreement reads.

Chris Shaw of the 2010 Watchdog Committee said the item is an example of the “hidden costs.”

“It was probably inserted because arena owner Orca Bay is represented on the Olympic Committee by a former employee,” he said.

Responded Vancouver Coun. Peter Ladner: “The wording is innocuous. It sounds like a clause so Orca Bay doesn’t feel like it’s being pushed around. The city will attempt to maximize its revenues.”

In the documents, Vancouver agreed to build the $167-million Athletes Village at False Creek and $26-million Hillcrest Curling Centre. The Coliseum and Agrodome will undergo a $21-million facelift for international ice hockey. Total Olympic contributions were $76 million to those projects.

The contracts, obtained after a Freedom of Information request from The Province, spell out the costs that city taxpayers have assumed for 2010.

Athletes Village project director Jody Andrews of Vancouver warned that “like a lot of other construction projects, our costs are rising.”

Another hidden cost is a clause that makes the Coliseum available for the “exclusive use” of the Olympics from Oct. 4, 2009, to March 31, 2010.

That covers the entire season for the Vancouver Giants, the Coliseum’s biggest tenant and money-earner.

“We were told that is not what is going to happen when everything is sorted out,” said the Giants’ owner, Ron Toigo.

“We expect to be out a couple of months, but we need to start planning.”

Another detail provides insight into how tightly the committee protects its advertising privileges.

Vancouver is allowed to name the Athletes Village, but the name must be acceptable to the committee even during non-Olympic periods.

Shaw said the provision is another example of how “the IOC has its nose in everything” and takes over city life in ways which people don’t realize.

“The Olympics people make a lot of promises to get support,” he said. “Some people believe the hype.”

VANOC PRIVILEGES

– The Olympic Organizing Committee pays Vancouver no rent or property taxes.

– The city is responsible for all permits and fees.

– Non-unionized Olympic employees will be allowed to work at the venues for several months prior to the Games.

– The committee has the exclusive use of Nat Bailey Stadium, field and parking lot for three months prior to the Games.

– The committee has the right to determine which products are available at the venues.

– The committee has no liability for environmental claims.

– The committee can terminate the contract at any time at its sole discretion.

© The Vancouver Province 2006

 



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