The Olympic Village boondoggle that dominated Mayor Gregor Robertson's first year in office haunted city hall in 2010.

A month after the 2010 Winter Games ended, city council decided half of the 252 over-budget social housing units in three buildings at the Olympic Village would remain social housing and half would be market rentals with priority given to residents who work in essential services such as police officers, teachers and nurses.

NPA Coun. Suzanne Anton wanted the city to sell all 252 units and use the proceeds to build more units of less expensive social housing elsewhere. But Vision Coun. Geoff Meggs said that scenario would see the city face financial and legal risks for competing against the sale of the Millennium Water condos, a site for social housing would have to be identified and the city would lose the opportunity to house 125 families right away.

It took another four months before B.C. Housing issued a request for proposals from non-profits to manage one, two or all three of the buildings. Then Sept. 29, less than 48 hours after three organizations submitted bids, Minister of Housing Rich Coleman rejected them.

On Nov. 5, the city selected the Co-operative Housing Federation of B.C. to run an 84-unit building as a co-op. COHO Management Services Society, an arm of the federation, will operate the two rental buildings for two years. Afterward, the city will seek permanent operators. The first tenants moved into the units the week before Christmas, nine months after the buildings were returned to the city by Olympic organizers.

In the meantime, the city disclosed Sept. 30 that developer Millennium Water was behind on repaying its loan from the city. It paid $192 million rather than the $200 million due by Aug. 31. By Oct. 7 it was roughly $350,000 short.

The city announced Nov. 17 that the Olympic Village was in receivership. At the eleventh hour, the city and Millennium agreed the city would file for receivership at the Supreme Court of B.C. City manager Penny Ballem and condo marketer Bob Rennie said receivership would evade costly legal battles.

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

Accounting firm Ernst and Young is responsible for ensuring the city recoups the $740 million owed to it for the Southeast False Creek development.

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.

Vision Vancouver continues to blame the previous NPA-dominated city council for the financial mess.

In a 2007 in camera meeting, the then NPA-dominated council voted in favour of a $190 million financial guarantee in a complex three-way agreement involving the city, Millennium and New York-based lender Fortress Investment Group.

At the same meeting, the NPA majority agreed to a "completion guarantee" on the loan to Fortress, effectively making the city the project developer and putting taxpayers on the hook for $1 billion.

crossi@vancourier.com