Sunday, June 28, 2009

Taxpayers last to pay if Olympics loses cash: Daley

Very interesting:
Mayor Daley said Saturday he wants a deal in which private insurance money would be tapped before public money if an Olympic Games in Chicago suffered any losses.

Daley previously had said he wanted a provision ensuring that $2.5 billion in public and private insurance and guarantees would be exhausted before taxpayers would be on the hook.

But that $2.5 billion already includes a $500 million guarantee against operating losses, approved by the City Council.

Now Daley is saying that the city's portion of the $2.5 billion should be the last to be tapped.

Speaking at a library dedication, the mayor also said Saturday that the insurance policy may need to be larger -- perhaps $3.5 billion.
It seems the Tribune is calling Daley's statements on financing the Olympics a flip-flop:
But on Friday, Daley offered muddled and conflicting versions of his pledge to sign the standard Olympics contract in a bid to win the Games.

In a news release, Daley said he may have "spoke too quickly" when he agreed in Switzerland to give an unlimited financial guarantee.

Pressed by reporters, Daley then seemed to suggest he hadn't made a blanket guarantee: "I just said I will sign an agreement, I didn't say which one." He added the city still planned to amend the Olympics contract to ease Chicago's liability.

But that is markedly different from Daley's remarks immediately after emerging from his June 17 meeting with the IOC, when he told the Tribune he had just agreed to sign the host city contract "as is." Daley's account was confirmed by IOC President Jacques Rogge.

"The mayor said he will sign the host city contract. We have only one host city contract," Rogge said last week. "There is no amendment to the host city contract whatsoever from the IOC."

The contract puts full responsibility for potential financial losses squarely on the host city, and for months Daley and the bid team pledged not to sign the contract, which could put taxpayers on the hook if there are cost overruns beyond the $750 million level the city and state already have agreed to cover. They secretly reversed course in the weeks before the critical Switzerland meeting after Olympics officials said they expected the contract to be signed without modifications.
This is starting to look like a mess.

Perhaps in the future I can offer my thoughts on the Olympics. I'm largely an agnostic on this or I should say neutral on whether or not Chicago should host the 2016 summer games. I'll very much expand on that soon!

No comments:

Post a Comment

PLEASE READ FIRST!!!! Comment Moderating and Anonymous Comment Policy

While anonymous comments are not prohibited we do encourage you to help readers identify you so that other commenters may respond to you. Either read the moderating policy for how or leave an identifier (which could be a nickname for example) at the end of the comment.

Also note that this blog is NOT associated with any public or political officials including Alderman Roderick T. Sawyer!