Chicago Tribune Examines Cost, Profits Of Hosting Olympics
An examination of Olympic-related construction costs dating back to the ’76 Montreal Games “reveals a pattern of cost overruns –- some of them quite spectacular” -– with the exception of the ’84 L.A. Games, when “little new construction was needed,” according to Kathy Bergen of the CHICAGO TRIBUNE. Chicago 2016 Chair Patrick Ryan, who has “sought to assure taxpayers that $500[M] in city guarantees backing operations most likely would never be tapped,” said that “every Summer Games in the past three decades has operated at a surplus.” But Bergen noted ’08 host Beijing is “pouring nearly $40[B] into its effort, almost tripling an earlier $14.2[B] budget,” and 2012 host London’s bill has “also tripled, to $18[B], due in part to rising construction and security costs.” Chicago 2016 officials are “quick to point out that preparations in Beijing and London bear little resemblance to what would go on in Chicago, where construction costs are projected to be a relatively modest $2[B].” Chicago 2016 spokesperson Patrick Sandusky: “We’re able to say to the international Olympic community that [65-70%] of our venues are built, that 90[%] of our venues are already connected by public transport, and that we’ve got some of our major costs covered” (CHICAGO TRIBUNE, 4/1).
L.A. STORY: According to an economic forecast, hosting the 2016 Olympics would bring at least $7B to the L.A. area, provide about 67,825 full- and part-time jobs and attract about 877,000 visitors. In L.A., Charles Proctor wrote the $7B estimate “far outweighs the $177[M] in private funds that would be spent to upgrade venues.” The city council “promised $250[M] toward the [IOC’s] requirement of $500[M] to back the games” and state officials have “pledged the rest” (L.A. TIMES, 3/31).
|
