Daley seeks to reassure taxpayers on Olympic plans
Facing a credibility problem over his Olympics plans, Mayor Daley sought to assure taxpayers today that the games would not cost them any additional money — despite his agreement to sign a host-city contract that could put them on the hook for losses.
“I do not want to burden Chicago taxpayers with the cost of the Olympics, I want to make that very clear,” Daley said after a opening reception of the new MillerCoors downtown headquarters.
(Richard A. Chapman/Sun-Times)
It was the mayor’s first public appearance since he and his Olympic planners returned from Switzerland, where last week they made a pitch before the International Olympic Committee for the 2016 summer games.
While he told the IOC he would sign the host-city contract, Daley said today he wants a provision in the agreement to ensure that the $2.5 billion in guarantees already in place to cover any losses will be exhausted before the city has to put up any additional cash.
That $2.5 billion includes several layers of private insurance that total $1.3 billion, another $400 million in rainy-day funds that would be generated by revenues earned from the games; a state guarantee of $250 million, and a $500 million guarantee of taxpayer money from the City of Chicago.
“That is our protection of the city of Chicago,” he said.
But Daley stressed he’s not expecting losses. He said the Chicago 2016 bid committee expects the games to generate $20 billion in new economic activity.
Daley’s pledge last week to sign the agreement — essentially an open-ended guarantee against losses — angered aldermen who believed they were kept in the dark about the matter.
Already a move is afoot in City Council to hire an independent analyst to eyeball the $1 billion in private insurance and other Olympics costs.
Flanked by a nodding Ald. Bob Fioretti (2nd) and Chicago 2016’s bid president Lori Healey, Daley sought to soothe those fears, saying aldermen would be consulted about the agreement before it’s signed.
“I would never take members of this City Council for granted, the taxpayers or anyone. I don’t know why people are trying to get this impression. I hope you stop that,” Daley said.
A host-city agreement has to be signed by the finalist cities in the days leading up to the IOC’s Oct. 2 vote to decide which city will host the 2016 Olympics.