This new report from city analysts says that the planned Olympic Village may actually “significantly exceed” that initial figure. The guarantee is mentioned in a section of the booklet where organizers detail widespread political support for the games, though no one from the Governor’s or Mayor’s office could say when Brown expressed such support.
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Several host cities have underestimated the cost of shoring up for the Olympics.
They also recommended that the city consider possibilities for re-use of the site, which is now envisioned as a temporary facility, and to identify alternative sites for the Olympic Village.
In the bid book for the 2024 Olympics that officials released this week, the 7,000-seat stadium in Carson, that hosted a WTA Tour event from 2003 to 2009, will be the site for Olympic tennis.
Los Angeles re-entered the race as a potential US candidate after Boston – the city originally chosen by USOC in January – pulled the plug on its bid in the face of public opposition related to costs.
The move, which sets up a vote by the full council next week, came after Chief Deputy City Attorney James P. Clark assured members its passage would not expose taxpayers to unchecked spending or debt.
They said that based on the information given to the city, “it is hard to determine the fiscal impact and risk to the city of hosting the 2024 Games at this time”.
The Los Angeles City Council is expected to vote Friday on a proposal giving Mayor Eric Garcetti authority to execute agreements linked to the city’s bid. The agreement will also involve the city in another, more complicated contract that was drawn up between the USOC and LA24, the nonprofit organization leading the Los Angeles bid.
Garcetti said Thursday in a meeting with the editorial board of the Los Angeles Daily News that the games would be a money-maker for the city.
In addition to the $4.1 billion in costs listed by the city, the plan also calls for a $400 million contingency fund as a hedge against overruns and a $150 million insurance premium.
Boston withdrew its bid to host the games last month, with the city’s Mayor Martin Walsh saying that the financial future of the city was more important. Union Pacific’s largest shareholder is billionaire Philip Anschutz, whose Anschutz Entertainment Group owns the NHL’s Los Angeles Kings and the downtown Staples Center.
Council President Herb Wesson credited Garcetti for proposing an ambitious plan but added that “we are not going to do anything that will put the residents of this city in harm’s way”.
The budget anticipates that the global Olympics Committee will contribute $1.5 billion or 31 percent of the revenue, with domestic sponsorships and ticket revenue making up the other two-thirds. Other members would be council members Mike Bonin, Joe Buscaino, Paul Krekorian, Mitch O’Farrell and Curren Price.
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“In Los Angeles, the spotlight is always on”. Councilman David Ryu asked after the meeting.
