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Post by Toad on Oct 1, 2009 9:47:31 GMT -5
Does Vancouver host next year?
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Post by Toad on Oct 1, 2009 10:42:25 GMT -5
I was wrong - looks like tax dollars will not be involved in Chicago's bid (at least not federal tax dollars):
This is a sticky problem for any U.S. city that bids for a Games. IOC rules require each bid to guarantee financial solvency -- in effect, to provide a guarantor to cover any potential shortfall. Most cities simply have a government branch (city, regional or national) sign off on the guarantee. U.S. cities can't rely on the national government to be a safety net. (The U.S. is the only country that relies entirely on private money to fund its Olympic teams.) The Chicago committee's $3.8 billion budget includes a $450 million contingency charge and it secured $1.45 billion in private insurance policies to enable the city to sign the IOC's financial guarantee contract. The city still needs to construct a main stadium, a velodrome and an aquatics center. The cost of building a 38-acre Olympic village on the site of a closed hospital will run another billion, but it is technically outside the Olympic budget.
This is a disadvantage for Chicago, as other bidding cities have their federal government as cosigners in case there are cost over-runs.
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