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Vancouver city council agreed Thursday to pump $22 million into the city-backed portion of the Olympic Village project in southeast False Creek.

The $21,895,200 will be used to cover multi-million-dollar cost overruns in the public portion of the development that will house athletes during the 2010 Winter Games.

The civic centre, which includes a community centre, boating facility, daycare centre and restaurants, will receive an additional $5,520,000.

The affordable housing component of the development, 252 units in total, will receive an additional $25 million, and the project office will receive an additional $1,305,200.

City manager vows to hold line
City manager Penny Ballem said Thursday staff would do a better job at sticking to project budgets.

While Ballem was not in charge when the overruns began to pile up, she pledged staff would no longer spend as if they have a blank cheque from council.

"And I think staff are very much engaged in understanding that we can no longer get into any project — whether big or small — with the notion that we have a blank-cheque authority from council," she said.

However, Coun. Raymond Louie said he couldn't promise this would be the last cost overrun.

"Well, I am looking for staff to give us that final detail," he said.

"My hope is that this is the final amount that will come before us. My hope is that the taxpayers won't be saddled with any additional costs. Certainly we find ourselves in a big financial mess because of the economics around the world."

The new funding is not the first cash injection for the troubled project.

In October 2008, council approved a $100-million "bailout loan" for the privately funded portion of the village being built by the Millennium Development Corp. after the hedge funds financing the condominium project pulled out because of the economic downturn.

(Source: cbc.ca)