CHICAGO -- The City Council voted overwhelmingly Wednesday to back the city's 2016 Olympics bid with a guarantee that would put city taxpayers on the hook for up to $500 million if the Olympic Games' operating budget lost money.
| Advertisement |
|||
| |||
The council voted 45-5 in favor of the guarantee sought by Mayor Richard Daley, who previously has said no taxpayer money would be used for the Olympics.
"This is going to be a monumental thing for the city of Chicago," Alderman Ed Burke said, imploring his colleagues to vote for the guarantee.
"I think this is a no-brainer," Alderman Danny Solis said.
But Adlerman Toni Preckwinkle, who represents the South Side ward where the Olympic Village would be built, voted against the measure, saying the city's 2016 committee had not been inclusive or operated in a transparent manner. Preckwinkle said she was troubled that talk of a $500 million guarantee did not come out until after last month's city election.
A handful of people attending the meeting heckled aldermen from the audience, calling for public hearings on the Olympics and cheering on aldermen who voted against the Games.
Chicago 2016 Chairman Patrick Ryan said he appreciated the City Council's backing.
"As we work to prepare our final presentation to the USOC, the continued support from the community and civic leaders of Chicago is a tremendous lift," Ryan said in written statement.
USOC officials told city organizers during an inspection visit that they want the government to "have some skin in the game" to please the International Olympic Committee. But Chicago officials have said the likelihood that taxpayer money would be used still is slim.
Ryan has said the organizing committee projects a budget surplus of $525 million, an estimate organizers believe is conservative. That surplus is the first of a five-layer structure of financial guarantees the city will submit to the USOC.
If the Games ran in the red, the first $200 million of losses would be covered by money the city expects to make by selling rights to build the planned lakefront Olympic Village and the rental of luxury suites at the Olympic stadium, Ryan has said.
The next $250 million in losses would be covered by the city. After that, the next $250 million in losses would be covered by private insurance and other undetermined public money, he said.
Finally, the city would stand behind a final $250 million guarantee to dig out from an Olympic financial shortfall.
Chicago is competing with Los Angeles to bid for the 2016 Summer Olympics, and the United States Olympic Committee will choose on April 14. The International Olympic Committee won't pick a host city until 2009; other bidders are expected to include Madrid, Rio de Janeiro, Rome and Tokyo.
Chicago has unveiled its plans to build a $366 million, 80,000-seat temporary stadium in a South Side park and a $1.1 billion lakefront athletes' village.
Plans also call for Olympic construction to be funded by proceeds from the sale of public assets held by the city-and-state-run agency that oversees the city's convention center and Navy Pier.
