The Los Angeles City Council has approved a Games deal with the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games – providing a framework for a range of details, including disaster insurance and the loss of tickets and the financial responsibility of the city in the event of a deficit.
The council voted unanimously in 2017 to approve LA’s bid for the 2028 Olympics. The games deal serves as a roadmap for the games as the city prepares to host the estimated event. $ 6.9 billion.
Under the deal – which went by an 11-2 margin – the games are paid for by the Los Angeles nonprofit organizing committee, or LA28.
In the event of a deficit, the city is liable for the first $ 270 million due, with the State taking over for the next $ 270 million. After the state’s share of the costs, the city would be on-line for any additional costs.
City administrator Matt Szabo and chief legislative analyst Sharon Tso briefed council members on the deal ahead of the vote on Friday, saying while it is impossible to eliminate all risks, the city has made its move. better to mitigate risk.
“At the end of the day, we are trying to protect ourselves against any budget deficit,” Tso said.
Councilor Mike Bonin and City Councilor Nithya Raman, both of whom have raised concerns about the city’s financial responsibility in the event of a deficit, voted against approving the contract.
“What we’re talking about today is whether we agree with the specific details of this deal… in favor of the city’s bid for the 2017 Olympics.
“I am concerned about the things we cannot imagine. A few years ago, we couldn’t have imagined COVID. There was a time when we could not have imagined flying planes in buildings and terrorists. “
The Games agreement specifies that LA28 is required to carry insurance to protect against “natural disasters, communicable diseases, terrorism, civil unrest, cyber attacks, cancellation of events and coverage for reduction. ticket sales and other site losses if events become less attractive ”. ‘
Szabo noted that the city is less likely to go over budget as it already has sports arenas and other infrastructure to host the games, which means it will have less unexpected construction costs than previous host cities.
While some Angelenos have expressed concerns about the cost of the Olympics being imposed on taxpayers in the event that LA28 overspends, the NOlympics LA organization is also arguing that the 2028 Olympics will accelerate the displacement and militarization of police in Los Angeles. at a time when many Angelenos and officials are looking for ways to reduce policing and reimagine public safety.
Activists cited a June 2020 neighborhood council meeting in which an LAPD officer said the department needed a 30% expansion to prepare for the Olympics.
NOlympics LA also cites fears that the games will accelerate gentrification, criminalize homelessness and privatize public space.
City Councilor Paul Krekorian, who chairs the city’s budget and finance committee, spoke ahead of the vote on the expected benefits of hosting a successful Olympics in Los Angeles, including:
- job creation starting years before the games as the city undertakes construction projects and other preparations;
- the $ 160 million Youth Sports Program, launched this year, funded by LA28 to provide subsidized training, mentoring and education to youth at Department of Recreation and Parks centers;
- procurement opportunities for Los Angeles businesses;
- thousands of people traveling to Los Angeles for games and spending money on local businesses;
- and an increase in tourism after the games.
The Games deal approved on Friday also said LA28 would develop and implement a program to ensure that local and underrepresented small businesses have access to and can participate in contract opportunities with the Olympics.
However, Szabo said that while the agreement provided for the program to be expanded, he did not give more details.
The gaming deal also says LA28 will work with the city to ensure the workforce is fully representative of Los Angeles’ diversity, and the committee will develop solutions to make gaming tickets available and affordable for residents of the city fairly.