Chicago Unveils 2016 Olympics Bid, Pegs Cost At $3.3B

CHICAGO — Chicago touted its financial strength in the 2016 Olympic bid Friday, with organizers saying they have at least a $1 billion safety net if the games exceed the estimated $4.8 billion price tag.

Chicago is competing against Tokyo, Madrid and Rio de Janeiro. The four cities submitted their bid files to the International Olympic Committee this week before making them public on Friday.

"Our aspirations for welcoming the world to Chicago and the United States are represented in nearly 600 pages in this three-volume document," Chicago 2016 leader Patrick Ryan said at a news conference.

Chicago's bid, supported by President Barack Obama, proposes centering the games along the city's scenic lakefront. The IOC will choose the 2016 host city on Oct. 2.

Chicago organizers said their safety net for the games includes a $450 million "rainy day fund," as much as $375 million in IOC cancellation insurance, another $500 million in insurance coverage _ and a "last-resort" $500 million guarantee of taxpayer money from the city of Chicago.

Olympic games are notorious for busting their budgets. The 2012 Olympics in London will cost an estimated $16.5 billion, three times its original estimate.

Chicago's Olympic organizers, meanwhile, expect to make a $500 million operating profit on the games that would run from July 22 to Aug. 7. The paralympics would run from Aug. 17 to Aug. 28.

Still, the ongoing economic crisis has cast its shadow over the city's bid. Ryan has said the bid committee was forced to adjust its surplus estimate from $725 million to $500 million because of a possible lower sale price of the Olympic village to a real estate developer for mixed-use housing.

Organizers are looking to bring in $705 million in revenue from the sale of 7.6 million tickets.

They're also counting on $240 million in private donations that include non-Olympics related naming rights for permanent structures or other building projects.

The IOC evaluation commission will visit Chicago on April 4-7.

Comments

[nemain]

01:09 AM on 02/16/2009

Some of the Olympic companies that sponsor the Olympics are traced back to the killings in Darfur and Sudan. Mayor Daley has sold ALL of the Chicago parking meters to a company that is going to bleed the citizens with a 24 hour pay the meter fare....and by 2016 will be $6 an hour to feed. Chicago and Illinois has a deficit so out of whack that we can't even fix our streets from the raging potholes that ruin people's cars.....and somehow we can afford to throw an Olympic party? Are you kidding me? Someone NEEDS to stop the madness!!! WAKE UP CHICAGO

[grigor]

05:34 PM on 02/15/2009

Hey, Chicagoans, I was born there long ago - I guarantee you the slums, crime, good education for the prosperous will continue after the olympics are over. Ever hear of capitalism? It goes nowhere and takes you with it.

[Benjine]

05:18 PM on 02/15/2009

They will win

[PlaceboStudman]

05:15 PM on 02/15/2009

this is really simple, all anyone has to do who doesn't want the olympics in chicago is to write the head of the IOC and tell him "welcome to Chicago, from the people who gave you Al Capone and Rod Blagojevich"

[OYea]

03:26 PM on 02/15/2009

If they plan on filling seats the government better come up with an economic plan that is going to REALLY help The People instead of catering to the Federal Reserve, giant corporations and the dinosaurs in government that are holding on to their Empire for dear life! If they don't wake up those who *think* that they are in control and at the top of the food chain are eventually going to realize that they won't have ANYTHING left to eat! Some world they're trying to leave for their children and grandchildren! THAT money could be DIRECTLY used to re-build the infrastructure, provide housing and job development programs for the homeless, clean up the Chicago Public School System, overhaul the Healthcare System, address the mounting problems with the Department of Human Services, address the growing problems with mass transportation and STOP raising the price to park your damn car let alone issuing BOGUS parking tickets and towing because overly zealot enforcement are trying to raise revenues for the city! While they're at it... CLEAN UP the Chicago Police Department and the corrupt Judges that are making a mockery out of law enforcement and the judicial system, and get rid of those surveillance cameras that are a violation of citizens rights! SOME of us have noticed where they're putting them and it's BLATANTLY obvious that Big Brother is RACIST who wants to return to the FEUDAL system!

[hortonhearsawho2]

08:21 AM on 02/15/2009

Will The Bong be competing ?

[ChooseLaugh]

08:20 PM on 02/14/2009

Wait did somebody forget to put a little something for Chicago in the stimulas package, bet something shows up soon to help, just wait

[hortonhearsawho2]

08:20 AM on 02/15/2009

Fine, they hold the O's at UR place...

[ChooseLaugh]

08:17 PM on 02/14/2009

Maybe the city should get their politicians straight first

[kid5rivers2]

06:54 PM on 02/14/2009

Waste of money, if you ask moi. It's time the Olympics be held in a permanent venue. Fullstop!

[Myshkin57]

03:33 PM on 02/15/2009

I could see the benefits of having the Olympics rotate if a good plan for what needs could be filled with the Olympic buildings after the Olympics were over. If the money spent on thee Olympics went towards filling needs that needed to be filled whether or not the Olympics were to be there, then it would be a great idea to rotate the location. However, as it is, the plans are often not very far-sighted.

[LindaMills]

01:36 PM on 02/14/2009

Obviously this is stressing you folks out. How about a great laugh?

Read Section 3.1 on the political structure. It explains the federal government -- Pres (lots on Obama), Congress, agencies, etc.; city government -- mayor, city council, agencies, etc.

And then there is this on state government: "The Illinois General Assembly, composed of the Senate (59 senators) and House of Representatives (118 representatives), is vested with statewide lawmaking powers. The State of Illinois will participate in the provision of services for security and transportation for the Games."

Written pre-Rod-removal, it doesn't even mention that the state has a governor. Hysterical!

[TheMoon]

07:34 PM on 02/13/2009

We should be getting a ton of money for transportation in the stimulus bill that was just passed, so I think the transportation problems will be lessened.

Nobody will really miss Michael Reese that much, saami. They have been failing for a LONG time.

[anesthesia84]

02:15 PM on 02/14/2009

Looking at past olympics i think it is dubious to think that hosting the olympics is a way of generating long term revenue and economic activity. In the last four olympics taxpayers have had to foot the bill (or in China's case the government). If this is the reality of hosting the games, then why not just give a hospital like michael reese 300 million to rebuild and renovate and another 300 million as an endowment? A whole lot of people will have good long term access to healthcare, it will create long term jobs and is cheaper than taxpayers paying for a prestige thing.

[Oeht]

02:12 PM on 02/15/2009

Sure didn't do that much down here in Atlanta. A number of venues used during the Games sit vacant around the city now. The developers got over on the taxpayers though. So best believe it will happen in Chicago.

[Myshkin57]

03:26 PM on 02/15/2009

What ton of money? It's $16 billion for the whole country and half of that for a train between LA and Las Vegas.

[Crix]

07:33 PM on 02/13/2009

Make it Rio and give South America a chance to host an Olympics for once.

[PerryWhite]

06:30 PM on 02/13/2009

I take it that the $500 million will be an emergency fund for Daley and Associates to pay off family friends and contributors.

[Adrienne Williams]

06:13 PM on 02/13/2009

Sorry, to say this here but I want the games in Chicago, not only will this increase our infrastructure, Trains, roads -- but this will help create jobs in Chicago! Come now, we need pride back in Chicago and I think this will help build that, along with President Obama backing. We need to think on a global scale besides just Daley.

[MovingtoNorway]

07:21 PM on 02/13/2009

You must be connected. Otherwise the Olympics is more taxes, more traffic and no tickets for you.

[Mahi Joe]

09:39 AM on 02/15/2009

You are so wrong. I bet we will get more tickets (parking) than ever before.

[Tinsdale]

11:07 PM on 02/13/2009

Ummmm...Adrienne... umm... Sorry, but just sayin'...it may not happen sorta like you hope it will with Hizzoner kinda helping out by controling stuff and handing out the jobs and all.
I also feel really, really bad about bringing this up, as well, but ...remember all those things people told you about Santa Claus and the Tooth Fairy and The Easter Bunny... well...

[BushBites]

05:51 PM on 02/13/2009

Love the renderings, by the way.

Suddenly, every Chicagoan dropped 20 pounds.

[MovingtoNorway]

07:21 PM on 02/13/2009

A brat free Olympics

[TheMoon]

07:31 PM on 02/13/2009

Haha! Those aren't Chicagoans! Those are the Olympians. That's the Olympic Village.

No way Chicagoans lose weight before 2016. We're on 2020 plan at the earliest!

:D