City, Olympic Officials Expected To Approve Contract This Week
Following Boston’s decision to cancel its bid to host the 2024 Olympic Games, the US Olympic Committee has been scrambling to find a replacement city to submit a bid by the September 15 deadline. According to the Los Angeles Times, later this week Los Angeles will become the new US city vying to host the games after USOC officials and Los Angeles officials reached a deal in negotiations on the city’s bid. On Tuesday Los Angeles’ City Council is expected to vote to allow Mayor Eric Garcetti to proceed with the bidding process. Garcetti senior aid Jeff Millman said, “We’ve made significant progress and are awaiting council approval before taking any next steps.” One stumbling block in the process is Garcetti’s promise to sign a traditional International Olympic Committee contract that would hold Los Angeles “financially responsible if unforeseen costs” of the games surpass revenues. In a draft bid Garcetti has projected the games would cost $4.1 billion along with another $400 million in a “contingency fund.” However, the proposal projects the games would lead to enough revenue for a $161 million budget surplus. Private partners including the University of Southern California and a developer would be contributing at least $1.7 billion towards the budget. City council members have been looking at the contract and adding measures to ensure they get to participate in the bidding process if it moves forward.
What Happens Next
If Los Angeles City Council approves the mayor’s proposed contract for the bid, the USOC will submit the city’s candidacy to the IOC by Sept. 15. The IOC will select a host for the games from among international candidates including Rome, Paris, and Hamburg, Germany. That decision will be announced in the summer of 2017.
What This Means For Small Businesses
Small business owners around Los Angles may have mixed feelings about the city’s potential bid. For one thing, hosting an international sporting event is likely to lead to some challenges for the city’s infrastructure and budget. However, if Los Angeles proceeds with a bid, and is awarded the games, there would be potentially lucrative benefits for the city’s small businesses, many of which would see a steady uptick in consumer demand prior to, and during, the Olympic games.
Additional Reading
NFIB previously noted the end of Boston’s 2024 Olympics bid.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
