Bob Rennie hopes to relaunch the sales and marketing campaign for the 480 unsold condos at the Olympic Village in early February, after the slow time for sales has passed.

He said he’ll meet this weekend with representatives of Ernst and Young, the accounting firm now responsible for ensuring the city recoups the $740 million owed to it for the Southeast False Creek development.

The city announced late in the afternoon Nov. 17 that the Olympic Village on Southeast False Creek is in receivership. At the ninth hour, the city and the developer of the village, Millennium, had agreed that the city would file for receivership at the Supreme Court of B.C.

Both city manager Penny Ballem and Rennie said receivership evades costly and ugly legal battles.

Millennium Southeast False Creek Properties is transferring ownership of the condos and commercial spaces at the village to the city.

Vision Vancouver Mayor Gregor Robertson said Ernst and Young will only be able to recoup the $740 million through condo sales if the real estate market stays strong in the months and years ahead.

“Patience is what’s critical,” he said.

Rennie, director of Rennie Marketing Systems, says he’s had a marketing and sales plan on his desk for months that would align condo prices at the Olympic Village with prices at comparable developments. But Millennium needed to provide the city, its lender, with more security to release the condos at lower prices, and that’s where negotiations broke down.

Any gap that remains while the condos are sold over the next few years is to be met by liquidating Millennium’s assets. Millennium owns multiple residential and commercial developments.

But the mayor said taxpayers could end up covering some of the shortfall.

The city has been adding legal attachments to Millennium’s property titles since September, after Millennium Water was $8 million short in paying the $200 million that was due to the city at the end of August. Millennium owed another $75 million by Jan. 3.

The city bought out Fortress Investment Group’s high-interest loan to Millennium in February 2009 to make sure the development was completed in time for the Olympics.

Ballem said the value of Millennium’s assets will take time to understand. Ernst and Young will have to sort out other encumbrances on its holdings.

The city has negotiated a deal with Peter and Shahram Malek, the brothers behind Millennium Water, to help their company avoid bankruptcy. The Maleks have signed a non-disclosure agreement with the city.

The mayor blamed the previous NPA-dominated council for getting the city into this mess.

Ballem called the receivership advantageous because it allows Ernst and Young to make quick decisions on the transfer of assets and for the city to feel more secure that there’s a plan in place to get its money back.

The lone NPA councillor, Suzanne Anton, disagreed.

“It’s a sad day for the taxpayers of Vancouver,” she said, adding the entire risk has now been transferred to the city.

Rennie wouldn’t comment directly on Anton’s views.

“I’m hoping that nobody uses the Olympic Village as a political podium,” he said. “We should all go through those audits when the last person moves in.”

crossi@vancourier.com