In what may be the first move toward meeting a new requirement that a governmental agency indemnify the U.S. and International Olympic committees against financial loss, the Texas Legislature has given preliminary approval to a bill that would create a special fund for bids for the 2007 Pan American Games and the 2012 Olympic Games.
Under terms of the measure, San Antonio, which is bidding for the Pan Am Games, could receive up to $20 million, and Houston and Dallas, which are each separately bidding for the Olympics, could get up to $100 million, said Harold Oliver, legislative assistant for state Sen. Frank Madla, D-San Antonio, author of the bill.
The bill must still be signed by Gov. George W. Bush, and voters in Houston and Dallas would have to agree to devote tax dollars to the effort. San Antonio voters would not have to approve it since no regular election is scheduled before that city's Pan Am bid is due in September.
"I think the bill speaks volumes for the state of Texas getting behind bringing mega events to our area," said Susan Blackwood, the executive director of the San Antonio Sports Foundation, which is bidding for the Pan American Games. Raleigh, N.C., and Miami are also vying for the 2007 Games, and the USOC is expected to pick a candidate city in October.
Blackwood said she expects that the bill will meet the U.S. Olympic Committee's requirement that a governmental agency indemnify the Games against financial loss.
Mike Moran, USOC assistant executive director of media and public affairs, declined to comment on whether the Texas bill would meet the requirement, saying the committee had not officially been notified of the legislation.
The indemnification requirement has been a concern by a number of U.S. cities bidding for the Olympics and the Pan Am Games. Late last year, Seattle dropped its Olympics bid, in part because public officials balked at the financial guarantee.
But the Texas legislation, believed to be the first of its kind, could serve as a model for other cities and states, said Chris Shields, attorney and lobbyist for the San Antonio effort. Funding for the indemnification would be drawn from any increase in sales tax — as estimated by the state comptroller — that would result from the increased economic impact of either the Olympics or Pan Am Games, he said.
