The now-defunct Boston 2024 Olympic bid committee low-balled cost projections compared to prior Summer Games and understated the risks associated with using private developers to build two major venues, an independent report commissioned by Massachusetts Gov. Charlie Baker found today. The report from Brattle Group calculated Boston 2024’s proposed $210M surplus on a $4.6B operating budget depended on a belief the Games would cost 25% less than what the London '12 committee spent, or $750M.
Operational risks paled compared to the challenges associated with building the Olympic Stadium and the Athlete’s Village, which were each centerpieces of major redevelopment projects proposed in Boston. Contingencies set aside for those projects were unusually low, and the profit incentive for private developers may have been insufficient to even attract bidders, the report found. In all, Brattle accused Boston 2024 of underestimating infrastructure costs such as public transit and road improvements by as much as $1.5B.
Baker and other state leaders first commissioned the Brattle report before July 27, when the Boston bid was abandoned.
