STAFF REPORT

February 11, 2000

To: Economic Development and Parks Committee

From: Michael Garrett, Chief Administrative Officer

Rick Ducharme, General Manager, Toronto Transit Commission

Subject: Toronto's 2008 Olympic and Paralympic Games Bid

All Wards

Purpose:

To seek Council's approval of the application to be submitted by the 2008 Toronto Olympic Bid Corporation (TO-Bid) and the Canadian Olympic Association (COA) to have the City of Toronto selected by the International Olympic Committee (IOC) as the host city for the 2008 Olympic and Paralympic Games and associated cultural festival.

Financial Implications and Impact Statement:

(a) Hosting the Olympic Games will provide tremendous economic benefits to the Province and Canada. More importantly, the Olympic Games will provide a singular opportunity to move forward in an integrated manner on the economic, social, environmental, governance and city building goals set out in Council's Strategic Plan, and to establish the partnerships and initiatives essential to continued investment in Toronto's high quality of life.

(b) By signing the candidature documents, Council will be assuming all commitments, liability and obligations related to the Bid and the Olympic Games, if awarded to Toronto. The provision of appropriate financial guarantees from the Federal and Provincial governments, and the private sector, will mitigate the City's degree of financial risk. These guarantees will allow the City to proceed with its quest for the 2008 Olympic Games on a fiscally prudent basis, consistent with Council's sustainable goals.

(c) In the event the City of Toronto is named host city, the Province of Ontario will be required to agree to give the City a guarantee protecting the City and the Canadian Olympic Association (COA) for any deficit in the capital and operating costs of the Olympic Games.

(d) Other Olympic-related venues will be built with private sector funding, e.g. the Olympic and Media Villages, broadcast centre, media centre, support facilities. It is expected that the TorontoWaterfront Revitalization Task Force will provide input on the feasibility of this plan.

(e) TO-Bid and the COA in consultation with the City of Toronto and other levels of government will establish a mechanism for operating Olympic-related facilities once the Olympic Games end, in accordance with an Olympic Games endowment fund.

(f) Hosting the Olympic Games will result in additional operating costs being incurred by some City Departments, Agencies, Boards and Commissions, including Works and Emergency Services, Housing Services, Parks, Police and the TTC. The City will absorb these costs and partially those incurred by GO Transit. It is expected that any Olympic Games related revenue generated by the TTC and GO Transit will be directed toward offsetting the City's costs.

The Chief Financial Officer and Treasurer has reviewed this report and concurs with the financial impact statement.

Recommendations:

Principal Recommendations

Based on the assurances covering potential or unforeseen deficits on the Olympic Games budget from the Province of Ontario, it is recommended:

(a) that Council approve TO-Bid's Master Plan for the 2008 Olympic and Paralympic Games and associated cultural festival subject to the various recommendations herein;

(b) that Council approve the joint application to be submitted by the 2008 Toronto Olympic Bid Committee (TO-Bid), the City of Toronto and the Canadian Olympic Association (COA), to the International Olympic Committee (IOC) seeking to have the City of Toronto chosen to host the 2008 Olympic and Paralympic Games and associated cultural festival;

(c) that the Mayor of the City of Toronto, be authorized to sign an undertaking on behalf of the City of Toronto to commit to sign the Host City Agreement should Toronto be chosen to host the 2008 Olympic Games. Such authority is subject to the Province of Ontario providing a guarantee that the Province will be responsible for any capital or operating deficit which may arise from the Olympic Games;

(d) Council endorse as an Olympic legacy the provision of 800 to 1,000 housing units (20% to 25% of total housing units) for qualifying families and individuals on Toronto's housing waiting list and 800 to 1,000 housing units (20% to 25% of total housing units) for moderate market rental and low end of market condominiums;

(e) Council endorse the development of a Resident's Rights Policy to ensure the protection of tenants, people without homes and neighbourhoods during the period prior to and during the Olympic Games;

(f) that Council secure from TO-Bid, the required commitments from the appropriate public and private stakeholders to ensure that the proposed housing strategy contained within this report is achievable;

(g) that City staff work with TO-Bid in a fiscally responsible manner to a create a legacy of sustainability - of environmental, social and economic benefits in the context of the City's long-term waterfront plans that are integrated and mutually reinforcing;

(h) that Council support a Harmonized Environmental Assessment Process for the Olympic bid that meets both Federal and Provincial Environmental Assessments and planning and development approval requirements;

(i) that City staff be authorized to participate in negotiations, community consultations and all related activities required to implement the recommendations in the report and to develop and promote the Bid;

(j) that appropriate City staff be authorized to take the necessary action to give effect thereto; and

(k) that City staff provide to Council regular progress reports on the development of Toronto's bid application.

Consolidated Recommendations

Finance

(1) That agreements be secured by TO-Bid with the Federal and Provincial governments for the provision, at their own cost, of the services within their respective jurisdictions that are required for the planning and staging of the Olympic Games;

(2) TO-Bid and the COA in consultation with the City of Toronto and other levels of government will establish a mechanism for operating Olympic-related facilities once the Olympic Games end in accordance with an Olympic Games endowment fund.

(3) That for the identified private sector initiatives, a detailed plan be developed to ensure their financial viability and sustainability;

(4) That the Chief Financial Officer and Treasurer report back to Council, should Toronto be awarded the games, on a strategy to fund the estimated operating costs to be incurred by City Departments, Agencies, Boards and Commissions.

Economic Development

(5) That the Economic Development Office, work with TO-Bid to develop an effective relocation plan that includes the provision of advice and assistance to businesses displaced by Olympic related installations with a view to maintaining their presence within the City of Toronto;

(6) That the Economic Development Office work with Tourism Toronto to maximize the economic potential that the Olympic Games can realize;

Social Equity

(7) That TO-Bid assess the social-economic impact and equity plan report currently being prepared by the Community Social Planning Council of Toronto (CSPCT) and work with the Commissioner of Community and Neighbourhood Services to prepare an action plan and report to Council on the steps proposed to be taken;

(8) That the Commissioner Community and Neighbourhood Services work with community, voluntary and private sectors to respond with appropriate recommendations for polices, programs, social investments and community grants to meet the City's public policy goals for social development and equity;

(9) That the Commissioners of Economic Development, Culture and Tourism and Community and Neighbourhood Services examine opportunities for new social and other community investments to be made as a result of new municipal revenues to be realized from the Olympic Games and report to City Council accordingly on potential investments;

(10) That TO-Bid commit to being guided by the City's social development principles and the City's policy on access and equity with regards to the planning, development and operation of the Olympic Games;

Transportation

(11) That the City of Toronto, in co-operation with the Federal and Provincial governments, ensure that Union Station receives the required improvements for TTC and GO Transit facilities in time for the Olympic Games in 2008;

(12) That the City of Toronto, in co-operation with the Federal and Provincial governments, advance the acquisition of GO Transit engines and accessible rolling stock, accessible TTC subway cars and buses and related facility improvements, identified in their respective long-term capital programs, to ensure transit services can accommodate the large volumes of passengers predicted during the Olympic Games;

(13) That TO-Bid review the proposed timing of the Olympic Games to ensure that they are staged during the summer vacation period, to reduce the load on the transportation system, and facilitate the leasing of transit vehicles and availability of temporary employees and volunteers;

(14) That TO-Bid immediately organize an Olympic Transportation Committee, chaired by an experienced transportation professional, and that this Committee develop an Olympic Transportation Master Plan in co-operation with City of Toronto staff;

Planning

(15) That Council endorse in principle a waterfront Olympic Bid which distributes venues and villages across three major rings of activity - west at Exhibition Place, central around Union Station and east in the Portlands; and complements these rings with additional venues within easy commuting distance from the Athletes' Village;

(16) That staff of Urban Development Services work with TO-Bid to develop a "Structure Plan" for each of the three rings on the central waterfront, which identifies priority views, street patterns and a framework for new parks and open space;

(17) That TO-Bid, in consultation with the City, hold design or design build competitions for all new venues, villages and plazas being built for the Olympic Games;

(18) That TO-Bid work with the Toronto Port Authority and Urban Development Services to finalize plans for the location of the Athletes' Village;

(19) That existing heritage buildings and heritage features on the waterfront be preserved and incorporated into new facilities wherever feasible;

Environment

(20) That TO-Bid be directed to modify Section 3.2-Cleaner Environment in the Master Plan, so that its environmental themes, principles and objectives are consistent with those identified in Council's Strategic Plan and the City's draft Environmental Plan;

(21) That a detailed municipal plan be prepared by the City to accommodate the proposed Olympic and Media Villages, venues and associated infrastructure projects

(22) That servicing of Olympic sites with other utilities, (i.e. telecommunications, high speed data, video connections, gas, phone, hydro) be coordinated through the Toronto Public Utilities Coordinating Committee;

(23) That policies be established by TO-Bid to ensure that the construction and demolition waste generated by the private sector during construction of the new buildings is re-used and recycled to the greatest extent possible;

(24) That a comprehensive "Harmonized Project Review Process" be designed and implemented to successfully coordinate the planning, development and approval processes, as well as the scheduling and construction of all Olympic and waterfront and related initiatives;

(25) That City Council support a Harmonized Environmental Assessment (EA) Process, that meets both the Federal and Provincial requirements, that can be applied to Olympic projects and activities, and all other waterfront and related initiatives occurring simultaneously, including the appropriate elements of the Wet Weather Flow Master Plan;

(26) That Council endorse in principle, a Harmonized EA Process integrated with other public consultation and planning processes, including the Wet Weather Flow Master Plan process;

(27) That a Harmonized EA Process be considered as the basis for the City's process for all Olympic servicing and waterfront-related facilities;

Culture

(28) That City Council endorse the Cultural Program developed by the TO-Bid Arts and Culture Committee, as outlined in the Toronto 2008 Olympic Master Plan;

(29) That TO-Bid continue to promote the dynamic cultural Olympic program for the 2008 Olympic Games; and

(30) That the Commissioner of Economic Development, Culture and Tourism establish a staff team under the direction of the Managing Director of Culture to work with the Arts and Culture Committee to develop an implementation plan for the Cultural Program.

Executive Summary:

The Olympic Games are a festival of youth. It is the world's largest pageant of athletic skill, competitive spirit and a major cultural festival. For the host city, however, the Olympic Games are something more. Hosting the Olympic Games provides tremendous direct and indirect economic, social, recreational and cultural benefits.

For the City of Toronto, the Olympic Games provide a singular opportunity to move forward in an integrated manner on Council's Strategic Plan:

· Creating employment opportunities, promoting the City's diversity and enhancing the City's international image, which are central to Council's goals around social well being and economic competitiveness;

· Reinvesting in social, recreational, environmental and transportation infrastructure, revitalizing the waterfront and bringing our traditions of public participation to the planning and hosting of the Olympic Games which provide a momentous contribution to Council's environmental and city building goals; and

· Establishing partnerships and initiatives essential to the continued investment in Toronto's high quality of life.

Wherever they are held, the Olympic Games have helped to transform the host city, providing unparalleled international exposure, and serving as the incentive to mount major improvements to all areas of civic life. The City of Toronto now has the chance, its best chance yet, to become an Olympic host.

In November 1999, the 2008 Toronto Olympic Bid Corporation (TO-Bid) unveiled its Master Plan for staging the Olympic Games. Although the Olympic Games are eight years away, the time to propel Toronto's bid to the next level is now.

On February 1, 2000 National Olympic Committees (NOCs) in a number of countries, including Canada, each registered the name of a potential 2008 Olympic host with the International Olympic Committee (IOC). The IOC is providing details of the Bid process to interested NOCs and cities in late February. And the race is officially on. Consider the IOC's timeline:

· March-August 2000: IOC analysis.

· September 2000:Acceptance of official candidate cities by the IOC Executive Board.

· September 2000-January 2001: Preparation of candidature files.

· January 2001: Receipt of candidature files.

· January-February 2001: Analysis of candidature files; preparation of documents for IOC Evaluation Commission.

· February- April 2001: Visits by IOC Evaluation Commission.

· May 2001: Evaluation Commission reports.

· July 2001: Election of host city by IOC Session in Moscow.

An endorsement from City Council is, therefore, needed now for TO-Bid and the Canadian Olympic Association (COA) to take the necessary next steps. Commitment from the City, as well as strong support from the Provincial and Federal governments, is considered crucial to getting Toronto's bid out of the starting blocks with momentum.

The Master Plan forms the basis of TO-Bid's request to City Council for approval to enter the international campaign for the 2008 Olympic Games. City staff have now analyzed the Master Plan, and have made a series of recommendations for Council's consideration. In reviewing the overall implications of bidding for and staging the Olympic Games, staff have considered many questions. The most fundamental one is this - Is the proposed bid fiscally and socially responsible? This follows City Council's requirements of March 1998, when it gave approval in principle to the Bid.

Fiscal and social responsibility are two of the five stated principles guiding TO-Bid's proposal. The other three are to ensure that a Toronto Olympic Games would be environmentally progressive, would celebrate diversity, and would leave a youth, sport, culture and community legacy. TO-Bid's overall proposal, as it stands, does live up to these principles, and respects Council's direction. The Master Plan projects a surplus of $87 million. As required by the IOC, guarantees will need to be in place to protect the City against escalating costs and any potential deficit.

As detailed below, the Olympic Games provide economic and other benefits not only to the host city, but to the surrounding area and the host nation. They provide a unique opportunity for a tri-level partnership to promote our country around the world. Because of the wide-ranging benefits - from affordable housing to enhanced recreation facilities, and from improved infrastructure to increased global awareness of the city, region and country - hosting the Olympic Games has traditionally been a co-operative effort. The various levels of government in the host country, as well as the private sector, who will share the benefits of the Olympic Games, also share in the support and the potential risks. Both the Provincial and Federal governments have been actively supportive of TO-Bid over the past two years.

From the outset, the Provincial government has acknowledged that the City is not able to provide the financial guarantees required by the IOC. A guarantee by the Province protecting the City and the Canadian Olympic Association (COA) for any deficit in the capital and operating costs of the Olympic Games would allow the City to proceed with its quest for the 2008 Olympic Games on a fiscally prudent basis.

The Federal government is fully supportive of Toronto's bid, will participate in the Bid process and the organization of the Olympic Games, and is expected to provide a covenant for provision of essential Federal services.

The City's request for Provincial and Federal support is based on the traditional staging of the Olympic Games, and on the reality that all levels of government benefit from the Olympic Games. In fact, while the Olympic Games will take place in Toronto, all levels of government will benefit in the form of increased tax revenues.

For Toronto and its citizens, financial benefits are only one of many legacies to be left from hosting the Olympic Games:

Housing

· The Olympic Athletes' and Media Villages will become vibrant new neighbourhoods including 4,000 mixed housing units.

Sports and Recreation

· Increased sport and cultural involvement across the country.

· New major competition venues built for the Olympic Games will be sustained by an endowment fund.

· Pools, gyms, tracks and fields will be upgraded to international standards, used for training purposes during the Olympic Games and will then be available for wide community use.

· Regional venues will be upgraded and used to host some of the preliminary team sport competitions.

· National acclimatization centres will be identified to host teams prior to the opening of the Olympic Games.

· The legacy of world class facilities will enable Toronto to compete successfully for the opportunity to host other major national and international sports events in the future.

· The endowment fund will be used to help strengthen the sport system in Canada from grass roots participation beginning at the community level to training coaches and athletes at the national level.

Economy

· The after-effects and spin-offs of a massive economic jolt, up to $8 billion of activity in the province, and 165,000 person years of employment.

· A sustained increase in tourism that could bring in an additional quarter-billion dollars or more into the Toronto economy every year. (Barcelona showed a 65% increase in the number of tourists within three years of hosting the 1992 Olympic Games.)

· Increased business and investment from the massive, worldwide publicity for Toronto.

· Government revenues will greatly expand, with Olympic-related tax collection of revenues of $3.125 billion - $1.4 billion for Federal, $1.2 million for Provincial, and $275 million for Municipal (approximately $100 million of that for the City of Toronto).

Infrastructure

· A range of transportation enhancements, from an upgraded Union Station hub, to street extensions, to improved roads and bridges, to new pedestrian connections, to improved rail corridors.

· A revitalized waterfront, with an increase in public facilities, housing and open space, and improved access.

· Improved air, water and land environmental systems.

· A series of new parks and plazas, and enhanced greenspaces.

· Greater accessibility for people with disabilities, i.e. barrier-free subway cars, buses, transit stations, and buildings.

Culture

· An enhanced climate of creativity and artistic stimulation.

· A retrofit for Toronto's aging cultural facilities and heritage attractions.

· A generally improved cultural infrastructure.

· New corporate partnerships and sponsorships for the arts, due to the Olympic cultural program.

· An enhanced climate of creativity and artistic stimulation.

Other Community Benefits

· Volunteer development.

· Heightened recreational, environmental and cultural awareness.

· A more active and therefore a healthier population.

· A stronger community spirit and pride.

While the Olympic Games last just a few weeks, residents of Toronto will enjoy an Olympic legacy for years after.

The chance to enjoy this legacy by hosting the Olympic Games occurs only once in a lifetime. For the 2008 Olympic Games, many signs point in Toronto's favour - our multicultural nature, which reflects the Olympic community, our track record hosting major international events, our profile in the Olympic movement from bidding for the 1996 Olympic Games, and our solid infrastructure, just to name a few.

A Toronto bid would likely be among the most competitive of the candidate cities for the 2008 Olympic Games. This feature is reinforced by an international recognition of the cities human and technical capacities. With Sydney hosting the Olympic Games in 2000, followed by Athens in 2004, it could well be Toronto's turn in 2008.

As Olympic host city, Toronto will also host the Paralympic Games. This competition follows shortly after every Olympic Games to create an extended sport festival. It features sports for elite athletes with a disability, and primarily uses the same facilities as the Olympic Games. This is a major competition involving athletes from 125 nations. The Movement and Olympic Games are overseen by the International Paralympic Committee. The event is staged by a local organizing committee which works in close co-operation with the Olympic organizing committee. While a Paralympics plan has yet to be fully developed, the upcoming 2000 Sydney Paralympics provides a guide to the scope of competition for some 4,000 athletes competing in 18 sports at 20 venues over a period of 11 days.

Hosting the Paralympic Games in Toronto will result in a rich legacy to the City and for people with a disability in wide range of social areas such as transportation, housing and employment. Considerable benefit will also occur to the Canadian and International Paralympic Movement from hosting a successful event in Canada in 2008.

Hosting an event the size of the Olympic Games brings a great deal of considerations and logistical challenges, along with the benefits. City staff have reviewed the implications of staging the 2008 Olympic Games in the following areas.

Finance: As part of the City's financial due diligence assessment of the Olympic Games bid, Finance Department staff have reviewed the budgets associated with the Master Plan. These estimates include the costs for operating the Olympic Games; constructing sports venues, housing for athletes and media; and the broader municipal infrastructure that would be desirable to service the Olympic Games.

The Master Plan budget for the 2008 Olympic Games estimates operating expenditures of $1.9 billion, which accounts for the activities associated directly with staging the Olympic Games; and capital expenditures of $687 million, which accounts for the construction or upgrading of the necessary sports venues.

Staff have concluded that the stated numbers appear to be reasonable and valid, given the information currently available. The operating budget relies heavily on the financial statements from the 1996 Atlanta Olympic Games, which reflect a) the actual costs of staging the Olympic Games; and, b) staging them in a North American city with similar demographic and economic characteristics to Toronto. Using these figures should cut the risk of escalating operating cost estimates, as past Olympic hosts have faced.

Regarding the capital budget, Toronto will benefit from a unique approach. PCL Constructors Canada Ltd. proposes a design-build "Guaranteed Maximum Price". This will transfer the financial risk arising in budget estimation from the Toronto Olympic organizing committee to the contractors.

Even if budgets and planning are sound, as they appear to be, and even if certain risks are unlikely, a Toronto bid still must protect against potential financial risks.

The preliminary cash flow analysis indicates only a minimal risk from interest rate deviations, as no long-term borrowing will be required to finance the Olympic Games. The most significant financial risks can be addressed by securing appropriate financial guarantees from senior levels of government. These guarantees apply to the operating budget and the costs of constructing the venues. The Master Plan proposes an endowment fund from the Olympic Games surplus, to support these facilities in the long-term. Other financial risks can be dealt with through conventional hedging strategies. This is appropriate, for example, when expenditures are made in Canadian dollars and revenues received in American dollars.

Hosting an event the scale of the Olympic Games will also require substantial support services - from security and immigration, to local policing and parks and waste management - from each level of government. The City will have to plan for these support expenditures in the year of the Olympic Games, and other jurisdictions are expected to absorb their own support costs.

While the Olympic Games budget does pose some financial risks, staging the Olympic Games will clearly provide the City with some broader financial benefits. These are discussed elsewhere in this report, but include additional and improved facilities and infrastructure that add jobs, investment, tourism spending, and property tax revenue.

Finance staff found the budget plans of TO-Bid to be thorough and realistic. In its preparations, TO-Bid is well ahead of other bid cities at this stage. TO-Bid's plans even compare favourably with those of the Sydney Olympic organizers, who are hosting the Olympic Games in just eight months. The breadth and depth of TO-Bid's preparations bodes well for the future management of the Olympic Games budget.

Economic Impact: The economic statistics cited earlier indicate the tremendous economic impact of the Olympic Games. In the years leading up the Olympic Games, up to $4.3 billion in construction expenditures will benefit Toronto in two ways. First, they'll provide a legacy that residents will enjoy for years - enhanced recreational opportunities, cleaner water, and a more attractive and accessible city. Second, construction provides many person years of direct employment, plus significant economic spin-offs (multiplier effects).

Although these construction expenditures would happen in the absence of the Olympic Games, the Olympic Games provide the impetus to accelerate these projects, and may prompt senior levels of government to become more involved in their development. The Olympic Games also stimulate private sector investment, e.g. new hotel construction for the anticipated increase in tourism, and expedite long-term employment.

During the Olympic Games, the operating expenditures will provide another stimulus to the Toronto economy. This includes new jobs that will provide an estimated 10,000 person years of employment. Out-of-province visitors will inject an estimated $360 million into the local economy shortly before, during and after the event, generating another 8,000 person years of employment.

The sustained impacts could be even more significant. For instance, the city of Barcelona (1992 Olympic Games) showed a 65% increase in the number of tourists within three years of hosting the Olympic Games. The Olympic Games would provide three weeks of massive, worldwide publicity for Toronto - a Toronto that will be seen as a great place to visit, invest in, live and work.

Housing: The construction of the Olympic Athlete's and Media Villages will provide the City with close to 4000 units of permanent housing. In addition to contributing to the development of the new waterfront communities, the housing will provide a much needed addition of between 800 to 1000 units for qualified households on the waiting list for housing. An additional 800 to 1000 units of housing will be available to households at affordable rents and purchase prices.

Creating the mixed Village communities requires a balance between ensuring that there are an appropriate number of housing units, based on the funds available to create these, as well as the market units which can be absorbed into the market place in a reasonable time frame after the Olympic Games. In developing the approach to the housing supply in the Villages, a balance has also been sought between the need for additional rental units and the supply of units for ownership. A significant number of the ownership units will be targeted to first-time buyer households.

Building the Villages and creating the affordable housing requires a strategic partnership between the Olympic Games organizers, the private sector and governments. Public inputs in the form of land, reduction or elimination of fees and charges, capital contributions as well as funding for rent supplements is required. Through the combined expertise of developers and the support of governments, the Olympic Games will provide Toronto with a lasting affordable housing legacy.

In addition to the creation of affordable housing there is a need to ensure protections for tenants, homeless persons and neighbourhoods. A Resident's Rights Policy, including the implementation of temporary legislative measures will address the potential for increased evictions of tenants. Initiatives aimed at managing the increased number of visitors and workers will reduce the pressure on tenancies. Neighbourhoods which are close to the Olympic venues will be the subject of directed planning and support efforts by the City in order to reduce potential undesired impacts of the hallmark event.

The Resident's Rights Policy will address the specific concerns related to persons who are homeless. Particular strategies and services will assist in reducing the impact on persons who are homeless during the Olympic Games. Increased frequency of contacts with security services and increased use of public spaces by visitors and others has the potential to impact homeless persons. The City, in collaboration with community groups will support initiatives that mitigate any potential negative impacts from the Olympic Games.

The plans outlined in this report provide the basis for ensuring that the Olympic Games provide a valuable housing legacy to the City, and that the potential negative impacts on tenants, homeless persons and neighbourhoods are mitigated.

Discussions have been ongoing with a variety of stakeholders to ensure that the housing objectives set out can be realized. The details of these discussions are expected to be available prior to February 29, 2000.

Social Equity: From the perspective of social equity and development, TO-Bid's Master Plan and the hosting of the Olympic Games raises a number of important issues.

The organizers of the bid have undertaken a number of initiatives to address social equity issues. In this regard the bid has initiated a social-economic and equity plan process. They have also adopted in the Master Plan an inclusive accessibility policy for competitors, officials and spectators in Olympic facilities, sites, services and amenities.

The hosting of the Olympic Games will require specific social equity plans and programs which seek to distribute the benefits of the Olympic Games over the whole community and attempt to minimize undesired impacts. To ensure this happens the Olympic organizers must continue to work with the broader community and the City to develop and execute a social equity-economic and equity action plan. It is anticipated that the work being undertaken by the Community Social Planning Council of Toronto will contribute to the process of the development of the action plan.

Ultimately, accomplishing social equity goals will help sustain the bid effort and will contribute to Toronto hosting a successful Olympic Games in 2008.

Transportation: The proposed 2008 Olympic Games will increase the demand on the existing transportation system serving the central area of Toronto. Accommodating this demand will require GO Transit and the TTC to upgrade and enhance their transit services, along with some new permanent and temporary infrastructure. All upgrades and enhancements to the transit system will be fully accessible to people with mobility difficulties. This will provide a legacy from the Olympic Games of improved, accessible transit services in the City.

Upgraded services will include: regional GO Transit services; TTC bus services to existing Bloor-Danforth subway stations; a GO Transit shuttle service between Union Station and the Portlands Olympic site; and an acceleration of the normal fleet replacement plans for GO and TTC (i.e. extra rail cars, subway cars and buses for use during the Olympic Games).

New infrastructure requirements fall under three categories. First, there is permanent infrastructure, which has generally been identified through other studies for other purposes, and would be of a long-term benefit to the City. This includes: Union Station Terminal upgrades; an additional subway platform for the TTC at Union Station; Fort York Boulevard/Nelson Mandela Way; an extension of Queen's Quay east and west, and the Olympic Promenade; and infrastructure directly serving Olympic sites.

The second category is temporary infrastructure, needed solely for the Olympic Games: commuter parking lots; new/upgraded bus terminals; a Cherry Street (Olympic) GO Station; a Milton/Georgetown GO Station serving Exhibition Place; and pedestrian connections.

Third, there is desirable infrastructure. This isn't required for the Olympic Games, but has been previously identified for other purposes, and would be beneficial for the Olympic Games. This includes: a Front Street extension; Simcoe Street underpass; Strachan Avenue grade separation; Dufferin Street jog elimination; and an LRT on Queen's Quay East.

Meeting the Olympic Games' transportation demands will also require a fundamental shifting of transportation resources, and temporary resources for the Olympic period. Background traffic and transit ridership to the central area will have to be reduced during the Olympic Games. This will require a large-scale and aggressive travel demand management program for the central area. All of this will be easier if the Olympic Games are held during the traditional summer vacation period.

Accessibility to and within the central area for non-Olympic related travel - cars, goods movement and transit - will have to be restricted during the Olympic Games. Also, the level of service downtown, for all modes of travel, will be reduced to maintain an adequate level of service for Olympic-related travel.

These conclusions are based on a preliminary review of the transportation needs of the Olympic Games. TO-Bid should continue to develop a full-scale Olympic Transportation Master Plan, with the help of City staff and through an Olympic Transportation Committee, to be chaired by an experienced transportation professional.

Planning: By proposing a waterfront-centred Olympic Games, the Master Plan recognizes the significance of this area. The Olympic Games could help to advance the City's revitalization of the waterfront by a decade. The Bid recognizes Council's objectives to:

(a) Enhance the quality, uniqueness and significance of the waterfront;

(b) Increase and improve access along the waters' edge and between parts of the waterfront;

(c) Increase the availability of, and variety of public facilities/open space along, the waterfront;

(d) Contribute to environmental sustainability in developing venues and transportation infrastructure;

(e) Provide new opportunities for housing;

(f) Strive for design excellence.

The Bid is generally consistent, with the City's emerging policy directions for a reinvestment in the Portlands and central waterfront. Both the Athletes' Village and Olympic Stadium are proposed to be in the Portlands. Although both would require amendments to existing policy, these facilities could fit into the City's comprehensive review of the Portlands which is considering the balance of mixed use, employment and public amenities in the area..

The Master Plan describes three rings of activity along the waterfront - west, east and central. Each will include new infrastructure that supports longer-term City building objectives. For example, the proposals around Olympic Rings West reinforce the significance of Exhibition Place as a centre for public recreation, sports and trade facilities, and could contribute to its long-term financial viability.

In the area of Olympic Rings Central, bid proposals support City policy by using existing facilities and potentially acting as a catalyst to other improvements in the Central Waterfront; proposing a plaza in Roundhouse Park; and suggesting a new pedestrian link directly from Roundhouse Park to the waterfront.

In Olympic Rings East - the location of the Olympic Stadium, Athletes' Village and Media Village - planning policies for the Portlands are still being developed, but will aim to attract a broader range of uses and long term investment to this area. Flood proofing of this area will be a prerequisite to new housing development.

The Barcelona experience shows how the Olympic Games can be a catalyst for revitalizing a waterfront, and setting a new standard of excellence in design and architecture for facilities and public places. The possibility of hosting the 2008 Olympic Games provides an exciting opportunity for the City to fast-track the revitalization of the waterfront, and leave a legacy of new sports and recreational facilities, parks, housing and public infrastructure.

Environment: The Master Plan recognizes that environmental issues must be a priority component of the Bid strategy. To assist with this planning, the City has made considerable progress in developing a vision and strategy for a cleaner, greener and healthier future. This includes Council's creation of an Environmental Task Force in 1998, to prepare a comprehensive Environmental Plan for the City. It is scheduled for completion in April. In reviewing the Master Plan, City staff also considered the effect of other waterfront plans and initiatives.

Revitalizing the Portlands raises key issues around servicing (e.g. sanitary drainage, potable water supply, storm water management, co-ordination with utility companies); the Don River alignment and surface runoff control; soil remediation; and solid waste management. Also, each of the future waterfront plans, plus the Wet Weather Flow Master Plan, will contain new waterfront projects, all of which may be subject to planning, development and environmental approvals.

To co-ordinate the implementation of all waterfront initiatives, and take advantage of synergies and partnerships, the City should support a comprehensive "Harmonized Project Review Process". This will help prioritize projects: assess costs; recommend actions; ensure effective public consultation; and obtain the planning, development and environmental approvals for projects.

The Master Plan suggests that environmental approvals be obtained before the host city is chosen in 2001. Obtaining key approvals at this early stage is a challenge, requiring the co-operation and participation of several approval agencies.

Working with federal and provincial agencies City staff and TO-Bid support the Federal and Provincial agencies development of a Harmonized Environmental Assessment Process that meets regulatory requirements. This process is also consistent with current City practice. To provide appropriate co-ordination, this process should apply to all related projects. Thus, it is recommended that City Council adopt this procedure once it's finalized.

Sydney's plan for the 2000 Olympic Games set a new standard for considering environmental concerns, and indeed helped seal their victory. Toronto's 2008 bid can and should aim higher. The chance to host the 2008 Olympic Games can also be an opportunity to restore and regenerate the waterfront and the region's natural and human environment, and create a legacy of sustainability.

Culture: The Olympic Charter calls for host cities to develop a cultural program. This isn't an "add-on" to the Olympic Games; the cultural component in Sydney's bid for the 2000 Olympic Games is even considered a deciding factor in their success. A strong cultural plan for Toronto's 2008 bid may provide a similar edge.

The Master Plan states that "Enhancing the cultural capacity of our communities strengthens a major component of the Olympic ideal in Ontario." Toronto's cultural plan reflects months of consultation and creative work with a diverse cross section of the arts and culture community. A "Cultural Olympic Games" would include a four-year sequence of festivals, culminating in 2008. These festivals will build on the notion of Toronto as a meeting place, on our First Nations heritage, on our reputation for cutting edge communications, and on the richness of our culturally diverse residents.

An Olympic-related cultural plan promises lasting benefits, such as a retrofit for Toronto's aging cultural facilities and heritage attractions; a modest number of new facilities; new corporate partnerships and sponsorships for the arts; increased cultural tourism; and an enhanced climate of innovation, creative daring and artistic stimulation.

Legal Agreements: The Bid City Agreement sets out a requirement for Federal and Provincial government assistance - financial and otherwise - which is satisfactory to the COA and the City. This is consistent with City Council's action at its meeting of July 8-10, 1998. A commitment of government assistance must occur before the City and the COA can execute an irrevocable undertaking to sign the IOC Host City Agreement, committing to the Olympic Games. Responsibility and liability for commitments undertaken by the City or COA in the Bid process will continue through the organization of the Olympic Games under the terms of the Host City Agreement.

OCOG, which would be set up within eight months of winning the Olympic Games, has the primary role in organizing the Olympic Games. The liability, however, remains at all times with the City and the National Olympic Committee (the COA). The Host City Agreement, which the OCOG must sign, contains principles and requirements for organizing and staging the Olympic Games.

The capital and operating budgets for staging the Olympic Games far exceed the City's debt level as established under Ontario Regulation 799/94 as amended by Ontario Regulation 75/97. Therefore, the City will have to obtain Ontario Municipal Board (OMB) approval to enter into and execute the required undertaking and Host City Agreement. The City will be required to produce evidence of financial guarantees from the Federal and/or Provincial government, and other parties as applicable, which will allow the City to accept this risk.

For the City to meet its obligations under the Host City Agreement and meet Council's directives for supporting the Olympic Games agreements need to be secured with the Federal and Provincial governments for the provision, at their own cost, of the services within their respective jurisdictions.

The City will also have to agree to accept certain obligations regarding the planning and staging of the Olympic Games, at City expense, related to: security and policing; medical services; tourism and marketing services; transportation services; fire, ambulance and garbage service; venues; and protocol services.

The requirements for a comprehensive housing strategy, to be developed as part of the next stage of the Bid, are dealt with elsewhere in this report. Agreements to implement this strategy will be required.

Conclusion

The wide range of benefits enjoyed by recent Olympic hosts, and their experience in dealing with the complex challenges of staging the Olympic Games, are both instructive. Close co-operation between the City of Toronto, TO-Bid, other levels of government, and the private sector can result in the establishment of new hosting standards for the Olympic Games.

Residents can enjoy a legacy far beyond the conclusion of the Olympic Games - one that includes affordable housing, a cleaner environment, infrastructure improvements, community use of Olympic venues, new parks and plazas, a new spirit of volunteerism, a richer cultural scene, increased tourism, and increased business investment.

The Olympic Games provide a unique opportunity to unite the people of Canada and the people of the world in a spirit of excellence and celebration - and an equally unique opportunity for the host city to propel itself to a new level of prosperity and liveability.

Comments

A. Finance

1. Introduction

At its meeting on March 4, 5, and 6, 1998, Council passed a number of motions regarding the financial impacts related to the City's bid for the 2008 Olympic Games. These motions directed Finance Department staff to work with the TO-Bid Committee in developing a financial plan for the Olympic Games that will not have a negative impact on the tax rate and that will protect the City and Toronto taxpayers from undue financial risk. Council also directed the Finance Department to conduct a due diligence review process of the TO-Bid budget.

The Olympic Games will provide tremendous direct and indirect economic benefits to the hosting city, the surrounding region, and more broadly, the hosting nation. The Olympic Games will provide a stimulus to the economy, both in the short term through increased spending during the Olympic Games, and in the long term through heightened global awareness of the host city. The Olympic Games can also act as a catalyst for City building resulting in improved housing, infrastructure and recreational facilities.

As a result of the broad range of these benefits, the hosting of the Olympic Games has historically been a co-operative effort between the various levels of government in the host country, the private sector, and various stakeholder groups.

These benefits, however, do not come without risks, due to the unique logistical challenge, the magnitude of the event, and the need to commit to a plan eight years in advance. Such risks can include variances from the projected operating budget, cost escalations in construction of the facilities, as well as general inflation, exchange rate and interest rate risks associated with changing economic conditions.

There are ways to mitigate these risks. The City of Toronto requires the senior levels of government, which stand to receive the greatest fiscal benefits, to participate in this venture.

The City has experienced key changes in its ongoing funding relationship with other levels of government. These have included the elimination of Federal government funding support for infrastructure as well as the transfer of various programs by the Provincial government in exchange for other services.

Most major cities in the United States share, to one degree or another, in revenues from personal and corporate income tax, and excise taxes. These cities also receive funding support from the State and Federal government.

Unlike U.S. cities, Toronto relies on the property tax base as its major source of funding. In the Canadian context, the fiscal benefits arising from the hosting of the Olympic Games will flow primarily to the Federal and Provincial levels of government.

Some 95% of revenue for the Federal government arises from taxes that are directly related to the level of economic output - income taxes, excise or consumption taxes including the Goods & Services Tax (GST), energy taxes, and custom import duties. Similarly, 77% of Provincial revenues come from various forms of taxes, including 28% from consumption taxes, such as the Provincial Sales Tax (PST), and gasoline, fuel and tobacco taxes.

As such, the Provincial and Federal governments will receive considerable additional revenues from the income taxes arising from increased employment and from the sales taxes on the construction and tourism-related expenditures associated with the staging of the Olympic Games. General improvements in the economy as a result of income and consumption growth will not have the same impact on the City's fiscal position as compared to the fiscal positions of Federal and Provincial governments.

It is estimated that the Olympic Games could generate up to $5.6 billion of economic activity (GDP) within Ontario. This economic activity will be the result of the expenditures resulting from the $2.8 billion Olympic Games budget, the estimated $823 million private sector development of support facilities for the Olympic Games, and increased tourism expenditures both during and after the Olympic Games.

The Olympic Games' role in accelerating the development of waterfront infrastructure, to realize the City's waterfront vision, could lead to a further $2.5 billion of economic activity.

PROJECTED ECONOMIC BENEFITS FROM HOSTING THE 2008 OLYMPIC GAMES

	Ontario GDP $millions	Canada Tax $millions	Ontario Tax $millions	Municipal Tax $millions
Capital Expenditures
Sports Venues	605	108.7	84.7	14.3
Villages/Broadcast Centre	680	122.3	95.3	16.1
Operations
Bid Preparation	13	2.4	1.8	0.3
Games Budget	1,880	321.4	310.6	86.6
Event Tourism	398	64.96	62.7	17.5
Sustained Tourism (2009-2014)	1,993	321.7	310.9	86.7
Total Games-Related Impact	5,569	941.3	866.0	221.5
Impact of Waterfront Vision-related Infrastructure Expenditures	2,464	443	345.3	58.5

The Olympic Games-related expenditures will result in an estimated 116,000 person years of employment, generating over $3.6 billion in total wages in the Province. These wages will translate directly into increased sales, GST and income tax revenues for the Federal and Provincial governments. Total Federal taxes associated with hosting the Olympic Games, including direct, indirect, and induced impacts, are estimated at $941 million. Provincial taxes are estimated at $866 million, while the total increased municipal taxes in Ontario are only expected to be in the order of $221 million.

Previous Olympic host cities, that have been better positioned to directly benefit from the economic stimulus associated with the Olympic Games, have still depended on a wide range of senior government support in the form of overall budget guarantees, infrastructure subsidies and the generous provision of support services for the Olympic Games. The support of the Federal and Provincial governments in regards to the 2008 Toronto Olympic bid is expected, given the fiscal benefits.

The TO-Bid budget provides a starting point for assessing the financial implications of hosting the Olympic Games. The budget includes costs directly related to the staging of the Olympic Games and for the construction of the necessary sports facilities. The budget does not include the cost of broader infrastructure improvements. The majority of this broader infrastructure should be built as part of the City's longer-term vision, regardless of the Olympic Games . Such infrastructure represents an investment in the city with long term benefits through improved quality of life, increased property values, greater development, and increased tourism. Nor has the budget been prepared with the intention of covering all costs associated with ancillary government services. Historically, the local and senior level governments of past host cities have always supported the Olympic Games by funding a portion of the costs incurred for transportation, security, emergency, health, parks and works related services.

Finance Department staff have reviewed the budgets associated with the Master Plan. These budgets estimate the costs for operating the Olympic Games and the capital costs for sports venues. The Master Plan provides additional estimates for the construction of housing for athletes and the media. TO-Bid is making a considerable ongoing effort to further refine and support the proposed budgets. The assessment in this report is based on the information made available to Finance staff in early January 2000.

Finance staff have reviewed each of these budgets with the following questions in mind:

· Are the stated numbers valid and reasonable?

· Do the proposed budgets present a full and complete estimate of all of the costs potentially associated with mounting the Olympic Games?

· What are the potential financial risks to the City, if the Province offers no guarantees?

· How do you mitigate risks?

· What are the economic impacts on senior levels of government?

· What other benefits are associated with the Olympic Games-related expenditures?

While this report presents a high-level financial assessment of the Master Plan budget from the City's viewpoint, a decision to proceed with the Olympic Games will require an assessment by all three levels of government. This assessment will have to balance the broader costs, beyond those directly included in the TO-Bid budget, against the broader fiscal, economic and less tangible benefits associated with staging the Olympic Games. Each partner will have to determine the level of risk each is willing to support.

Discussions have been underway with the Province to secure guarantees that protect the City against any potential deficit arising from hosting the Olympic Games. Such a guarantee would allow the City to proceed with its quest for the 2008 Olympic bid on a fiscally prudent basis. The City's exposure, as outlined in the following analysis, will be limited if not completely eliminated.

2. The Master Plan Budget

In November 1999, TO-Bid distributed the "Master Plan for the Toronto 2008 Olympic and Paralympic Games" to City staff. In addition to serving as a draft framework for the preparation of the Bid, the Master Plan provides a basis for discussions between City staff, TO-Bid, and other interested stakeholders.

The Master Plan budget is divided into two primary components. The direct Olympic Games budget will be managed by the Toronto Organizing Committee for the Olympic Games (OCOG), and funded by revenues collected as a direct result of staging the Olympic Games. Total Olympic Games related expenditures are estimated at $2.6 billion. That includes operating expenditures of $1.9 billion to provide for the activities associated directly with the staging of the Olympic Games, and capital expenditures of $687 million to provide for the construction or upgrading of the necessary sports venues.

Another component of the budget accounts for the construction of support facilities, and will be funded through public and private sector investments.

OCOG-Funded Operating Budget: The operating budget for the Toronto 2008 Olympic Games has been developed for TO-Bid by Ernst & Young. This budget identifies $2.8 billion in revenues and $1.9 billion in operating expenditures.

Developing an operating budget for an event of this magnitude is a daunting task under any circumstance. More so, because it is difficult to obtain consistent and reliable financial data from past Olympic host cities. Each host has taken a significantly different approach towards accounting for the costs and revenues associated with the Olympic Games. Each of the Olympic Games has also taken place under significantly different micro and macro-economic conditions.

Building an estimate of the budget "from the ground up" also presents problems due to the unique scale and scope of Olympic Games-related activities. The enormous size of this event is generally without precedent in a city's history.

In preparing the budget, therefore, Ernst & Young have relied heavily on data from the 1996 Olympic Games in Atlanta. The final post-Olympic Games accounts for the 1996 Atlanta Olympic Games are considered to present the most accurate and thorough picture of the general costs of hosting the Olympic Games. Furthermore, Atlanta is considered to be relatively representative of the conditions that may be expected in Toronto with respect to demographics, business and construction costs, infrastructure, etc. Table 1 compares the Atlanta budget with the TO-Bid budget (all figures in the report are expressed in year 2000 $CDN unless otherwise noted).

Revenues: All of the revenues directly associated with staging the Olympic Games are included in the operating budget. The largest component will be received in the form of grants from the International Olympic Committee (IOC). These grants are comprised of funds generated by the IOC through agreements negotiated for the television broadcast rights and worldwide sponsorship of the Olympic Games. The Host City Contract states that the OCOG will receive broadcasting-related grants equal to 49% of the revenues received by the IOC. It is expected, based on preliminary discussions with the IOC and COA, that this will amount to $970 million. Grants from The Olympic Program (TOP), IOC's worldwide sponsorship program, are expected to be approximately $206 million. Revenues from these grants will begin to flow to the City in the four years leading up to the Olympic Games.

The second major component of income for the Olympic Games will be generated by ticket sales. The operating budget in the Master Plan relies on an estimate originally developed by an Olympic ticket sales consultant, Alan Koyanagi, which Ernst & Young subsequently revised. This revised estimate has been built "from the ground up" using the seating capacities in the proposed facilities, 2000 Sydney ticket prices plus 8%, and projected proportions of physical seats filled for each of the proposed events. The total estimated gross ticket revenue in the Master Plan budget is $856 million. The ticket sales revenue is stated as a gross amount that includes the GST and PST amounts totaling $130 million. It is noted that the revenue from the taxes on the ticket sales will accrue only to the Provincial and Federal governments.

The third major component of the Olympic Games revenues consists of funds generated by the Joint Marketing Program to be implemented by the OCOG and the COA. This program will solicit local sponsorship, and manage the local licensing and retailing of Olympic Games-related merchandise. OCOG and the COA will divide the net revenues of this marketing program, according to an agreement signed prior to the awarding of the Olympic Games in 2001. The Master Plan budget estimates that the OCOG's portion of these revenues will be approximately $566 million. The estimates for this component of the budget are based directly on data from the Atlanta Olympic Games. In order to account for potential differences with Toronto conditions, the budgeted revenues from the Joint Marketing Program are based on an overall reduction of 26% from the Atlanta figures for conservatism.

Operating Expenditures: Ernst & Young have relied heavily on the Atlanta figures in developing the expenditure portion of the operating budget. The single largest components are for the personnel and technology associated with the administration and management of the Olympic Games. Together, these items account for approximately 1/3 of the operating expenditures. Other supporting functions, such as accommodation, catering, security, transportation, medical services, and logistics, account for another 1/3 of the expenditures. The costs associated with the actual staging of the sports events, pre-Olympic events, and ceremonies account for 1/5 of the expenditures. Specific media support functions in the International Broadcast Centre and the Main Press Centre account for the remaining expenditures.

OCOG-Funded Capital Budget: The construction and upgrades of sports facilities required for the Olympic Games is the other area of expenditure to be funded from the revenues in the operating budget. A Toronto Olympic Games would use a unique concept to limit the cost of the capital budget - a "Guaranteed Maximum Price" (GMP). This approach will transfer the financial risks due to potential cost over-runs from OCOG to the contractors (PCL). This GMP will also include the cost of a 100% performance bond to protect the OCOG against financial risk from non-completion of the work.

The current budget estimates the total facility construction cost at approximately $690 million. Of this, approximately $481 million is allocated to constructing or upgrading facilities near the Toronto waterfront in the primary sports venue locations. The remainder is for facilities to be used for staging other events and for training. Approximately 28 of these venues are to be located in the "905" area surrounding Toronto. Many of these venues have not yet been selected; the budget contains non-site-specific approximate upgrade allowances for these facilities.

Privately-Financed Support Facilities: A number of support facilities will be required for the Olympic Games to house the athletes and the media. These facilities are to be built and funded by the private sector. Under the Master Plan, the private sector would rent these facilities to OCOG during the Olympic Games. PCL has prepared an initial construction cost estimate for these facilities of approximately $823 million (Table 2). This estimate will not form part of PCL's Guaranteed Maximum Price commitment for sports venue construction.

City Housing Policy staff have prepared an initial plan for using the Athletes' Village and the Media Village towards meeting the City's objectives for mixed housing. This plan proposes that an "off-book" Villages development be co-ordinated by a Waterfront Development Agency, or by a landowner partnership to be formed by the City, Province and Federal government. Under this proposal, the Village development and financing will be the responsibility of the private sector under development contracts with this agency. It is intended that these development contracts include provisions for mixed housing.

3. Staff Analysis of Proposed Olympic Games Budgets

Historical Perspective

The experience of past host cities indicates that caution is warranted in reviewing Olympic Games budgets at the Bid stage. Developing accurate budgets well in advance of staging the Olympic Games has proven consistently difficult for some bid cities. Costs can rise significantly as budgets evolve from the Bid stage to the operational planning stage and, finally, to the post-Olympic Games closing of accounts.

Consider a recent audit report prepared by the Auditor for the New South Wales Government on the 2000 Sydney OCOG. In this case, the initial assumptions regarding the Bid estimates were later found to be "superficial". A greater appreciation for the complexity and extent of various operations was only developed post-Bid. The impact has been reflected most dramatically in the overall net projected costs to the State government of New South Wales. According to the Auditor's report, the net projected overall government costs are $1.8 billion greater than originally identified in the Bid budget. This is largely due to a broader inclusion of government costs, as well as to higher infrastructure and facility cost estimates.

Allocating an appropriate portion of the new infrastructure costs to the Olympic Games budget has been a consistent challenge for host cities and their senior levels of government. While the staging of the Olympic Games often acts as a catalyst in the construction of new and upgraded infrastructure, this infrastructure usually has long-term benefits that greatly outlive the actual period of the Olympic Games. Often, the majority of this infrastructure would have taken place in the absence of the Olympic Games, but on a slower schedule.

In regards to Toronto, the City's Waterfront Vision is proposing a number of infrastructure improvements, which should be undertaken regardless of the Olympic Games. Therefore, it would be inappropriate to assign these costs to the TO-Bid budget.

Atlanta also experienced cost escalations as their bid budget evolved into the final accounts of the 1996 Olympic Games. Although the Atlanta Organizing Committee aimed to achieve a surplus and create a foundation to fund amateur athletics, the projected contingency of 5% of total revenues was almost eliminated. Only $30 million was left for post-Olympic Games facility conversions and outstanding legal disputes. The estimated total government costs also more than doubled from an early estimate of $530 million. However, a large portion of this estimate includes capital funding for projects with long-term benefits, which were merely accelerated for the Olympic Games.

Review of Operating Budget

The entries in the Master Plan operating budget are based on several underlying assumptions. Finance staff's review of these assumptions has given rise to a number of issues, which would only be relevant in the absence of a guarantee from the Province. These are described below.

Applicability of Atlanta Data in Toronto: As previously noted, the Toronto 2008 budget is based largely on the Atlanta figures. Ernst & Young's preliminary analysis of macro level indicators reveals a general similarity between the two cities, on a demographic and a general economic level.

On a demographic level, Toronto and Atlanta have similar populations within their boundaries and their broader suburban catchment areas. This should provide a similar base from which to generate ticket sales and recruit volunteers. Toronto and Atlanta also have roughly comparable average wage levels and overall ratings on an index of business costs. This should result in generally comparable basis for estimating the costs of operating the Olympic Games.

However, there will be specific distinctions between conditions in Atlanta and those in Toronto. For instance, additional transportation costs will depend on the unique physical layout of the city, current transportation services and venue locations. Specific differences in micro-economic conditions could also impact on labour costs, borrowing costs and the costs for various critical services (e.g. security, telecommunications and insurance). Some of these potential differences have been addressed by adjusting the Atlanta budget figures in preparing the Toronto bid. These adjustments included an additional allowance of 20% ($24 million) for transportation services due to operational differences and to provide a contingency that will help prevent the types of service deficiencies that Atlanta experienced during the Olympic Games.

Ernst & Young have also indirectly provided a substantial allowance for conservatism (32%) in their estimate for advertising and promotion. This estimate was based on the gross advertising and promotion expenditure for the Atlanta Olympic Games and did not capture certain cost recoveries. This expenditure for Atlanta in Table 1 is shown net of these cost recoveries.

On balance, the Atlanta figures give Toronto reasonably appropriate data on which to prepare a budget. In addition to being based on similar conditions, the Atlanta data are the final costs of hosting the Olympic Games, not an operational estimate. Consequently, applying these data should provide for some protection against the common escalation of costs from the Bid stage to actuals. The impact on the budget of potential variances from the Atlanta figures is discussed later in this section.

Estimates for Ticket Sales Revenue: As a result of a recent revision of the seating for the sports venues, Ernst & Young have revised the estimate of ticket sales from that shown in the Master Plan. The new estimate is based on the currently proposed venue sizes, which results in almost the same total number of tickets being made available as were available for the Atlanta Olympic Games.

Three scenarios have been prepared by Ernst & Young with different assumptions of ticket prices and percentages of tickets sold.

The "recommended scenario" is based on selling the same percentage of tickets as were sold in Atlanta, but assumes higher ticket prices. The end result is the same estimate of ticket sales revenue as was shown in the original Master Plan. Ernst & Young have suggested that this is achievable given the higher projected 2008 population in the Toronto area relative to Atlanta in 1996. The proposed net average ticket prices in this scenario are only 13% higher than in Atlanta. However, gross average prices will be 24% higher in Toronto as a result of higher Federal and Provincial taxes on tickets.

Ernst & Young's "pessimistic scenario" is based on selling the same volume of tickets but at an average net price that is 4% higher than in Atlanta and an average gross price that is 15% higher. This would result in total revenues that are $53.5 million lower than in the TO-Bid Master Plan.

Excluded Costs: The current Master Plan budget excludes certain costs that will arise from hosting the Olympic Games. The TO-Bid budget includes an allocation of $75 million for the Cultural Program mandated in the Olympic Charter consisting of the opening and closing ceremonies, medal ceremonies, the flame relay, and a youth camp. However, successful recent bids have also included proposals for multi-year cultural festivals leading up to the Games. This type of supplementary program has been included in the text of the Master Plan but not included in the Master Plan budget.

The net cost for the proposed supplementary program cannot be easily determined from a review of historical data. The Atlanta financial statements did not distinguish between sponsorship revenue received for the Games and sponsorship revenue associated with the Cultural Olympiad. The gross cost for mounting the Cultural Olympiad in Atlanta was $35 million.

A detailed plan and budget has not yet been prepared for the supplementary Toronto 2008 Cultural Program. However, the City's Culture staff have proposed that the funding will come through existing government funders at all three levels, from private sector sponsorships, foundations and Internet-related revenues. According to TO-Bid staff, the program will be scaled so that it is self-financing within projected revenues.

The Paralympics is another excluded cost. The Atlanta Committee for the Olympic Games (ACOG) allocated $18 million to the staging of the Paralympic Games A similar proposed contribution in Toronto's case would reduce the TO-Bid surplus to $69 million.

It is noted that the Atlanta and Sydney Paralympic budgets included contributions from both the state and national governments. TO-Bid will have to secure agreements with the Federal and Provincial governments to confirm a level of support. Other revenue sources include corporate sponsorships, ticket sales and entry fees.

Hosting an event such as the Olympic Games will require substantial additional resources from each level of government. Table 3 presents some historical examples of these additional operating costs incurred for other Olympic Games by the respective governmental agencies.

Preliminary Estimate of Potential City Costs:

Clearly, the TO-Bid budget has not been prepared with the intention of covering all costs associated with ancillary government services. The approach taken has been to follow the precedents set by past host cities in terms of the proportion of overall costs carried in the Organizing Committee Budget for these services. Historically, the local and senior level governments of past host cities have always supported the Games by funding a portion of the costs incurred for transportation, security, emergency, health, parks, and works related services. Governments have been willing to fund these services, in recognition of the Games' tremendous direct and indirect benefits to the hosting city, the surrounding region, and more broadly, the hosting nation.

However, the unique logistical challenge and the need to prepare plans eight years in advance have made the development of accurate high level estimates of the additional government costs very difficult. Nonetheless, as part of the City's due diligence process, the Olympic Office has co-ordinated the collection of preliminary estimates by the City's operating departments of the additional costs they anticipate may be incurred as a result of staging the Games. The early preparation of detailed estimates should allow for better operational planning. Resources required of the City will include support for security, emergency services, transportation services, housing, parks services and waste management. Preliminary estimates have been received for a total of $27 million to provide these services. The following table provides a summary of the departmental estimates, and Finance Staff's review of these estimates is contained in Attachment 6.

Should Toronto be awarded the Games in 2001,the Chief Financial Officer and Treasurer will be reporting on funding options, for potential additional city costs.

Review of the Sports Venue Capital Budget

Finance staff's review of the OCOG capital budget for the sports venues is based on the November 12, 1999 version of PCL's Conceptual Construction Budget. As noted, if the Province commits to a guarantee for any cost overruns in the TO-Bid budget, including the capital component, the City will be well shielded from any potential financial exposure.

Level of Detail for Regional/Training Facilities: There is a substantial level of detail in PCL's estimates for the key Toronto facilities ($481 million). Details pertaining to the $206 million portion of the budget for regional/training venues have yet to be finalized. In some instances, the actual locations have not yet been identified. PCL and TO-Bid will have to finalize these locations over the next few months, and refine cost estimates for the Toronto facilities, before submitting their final guaranteed price. The total capital estimate of $687 million currently presented in the Master Plan budget may change as a result.

Potential Conditions Attached to the Price Guarantee: PCL and TO-Bid have committed to the concept of a Guaranteed Maximum Price (GMP), a unique method of mitigating the potential cost overruns from the capital program. There will, of course, be conditions attached. This may allow for the possibility of cost escalation beyond the guaranteed price.

The current PCL conceptual budget assumes that there will be no need for overtime to meet an accelerated work schedule. Therefore, the lands on which the facilities are to built will need to be fully prepared and turned over for construction by a specific date in order to ensure that the various facilities will be completed sufficiently in advance of the Olympic Games.

The schedule attached to the current conceptual budget assumes that the land assembly will begin in November 2000 and be completed by April 2002. Soil remediation is then to be carried out until early 2004. There is no reason to consider the proposed deadlines to be unrealistic if all levels of government commit to move the project forward. Slippage in the schedule for these activities, and a resulting change in the construction schedule, could lead to a departure from the GMP.

PCL and TO-Bid have formulated the sports venue budget based on their current understanding of the guidelines established by the IOC and the various international sports federations. They have received some feedback from the International Sport Federations on the adequacy of the proposed sports venues. However, there is still potential for changes to the proposed facilities as designs are further developed or as construction progresses. The Sydney organizers have had to substantially modify designs that were originally thought to be adequate during bid preparation.

The current budget also contains an exclusion for substandard soil conditions. The need to modify facility foundations to accommodate substandard soil conditions may result in additional costs beyond the GMP.

Post-Olympic Games Operating Plan for Sports Venues: The primary legacy facilities from the Toronto Olympic Games will include the aquatics centre in the Portlands, the Olympic Stadium in the Portlands, a rowing and canoeing course in the ship channel and a velodrome. It is not yet determined which of these would be turned over to the private sector or other agencies. The Master Plan proposes the post-Olympic Games management of these facilities using a model established after the 1988 Calgary Winter Olympic Games.

According to this model, a non-profit management board will operate the venues as training sites for Canadian and international athletes, as well as use them to stage national and international competitions. Funding for the ongoing maintenance of the Calgary facilities is primarily provided through two endowment funds established in 1988. The first was created through a transfer of a $33 million (1988 dollars) surplus from the 1988 Winter Olympic Games budget; the second was created through a $34 million (1988 dollars) contribution from the Federal government. The projected surplus per the TO-Bid Master Plan budget is $87 million with $52 million available as a contribution to an endowment fund to support the ongoing operating and maintence costs of sports facilties.

TO-Bid have commissioned a review by Arthur Andersen to determine the post-Olympic Games costs of the major facilities built for the Olympic Games. Their preliminary analysis indicates that a total annual allowance in the range of $2,850,000 would be appropriate. If this amount were to be continually funded, an endowment fund in the range of $50 - $70 million would be required.

Excluded Costs: The Conceptual Construction Budget for the OCOG sports facilities identifies a number of excluded costs. One of the two major categories is Waterfront Vision-related infrastructure improvements, environmental remediation, and land acquisition.

However, it is not appropriate to assign these costs to the Olympic Games budget. The majority of this broader infrastructure would have been built anyway in meeting the City's broader planning objectives for making more productive use of the City's waterfront lands, regardless of the Olympic Games. Such infrastructure represents an investment in the city with long term benefits through improved quality of life, increased property values, greater development, and higher tourism. Each of the proposed infrastructure components will provide some benefit to the City well after the completion of the Olympic Games. Therefore, the Waterfront Revitalization Task Force, which will be submitting its implementation plan in February 2000, will address the provision of the necessary land and infrastructure.

Facility rental, fixtures, furniture, and equipment costs have been covered to some approximate degree in the operations budget. However, the allowances for these items are not based on the specific requirements for the Toronto facilities. They are, instead, based directly on the figures in the budget for the Atlanta Olympic Games.

Ernst & Young have stated that they believe the allowances for facility rental, which may be revised, will not have a major impact on the total expenditures for the Olympic Games. TO-Bid is endeavouring to negotiate agreements with many of the key venues on a site-by-site basis prior to submitting the Bid.

Public-Private Capital Budget for Support Facilities

The Master Plan identifies two key components of the public-private capital budget - the housing for media and athletes, and the Media Broadcast Centre.

With respect to housing, estimated at $623 million, the Master Plan anticipates that this will be financed through an innovative public-private partnership arrangement. The TO-Bid budget does not provide any allowance for the capital cost of this housing. However, the operating budget includes estimated costs for renting these facilities from the private developer during the period of the Olympic Games. Issues affecting the City's housing strategy are discussed elsewhere in this report.

There is also no allowance in the operating budget for the Media/Broadcast Centre, with an estimated cost of $150 million. This facility is a requirement for receiving the broadcast-related grants from the IOC. The Master Plan suggests that the private sector will build the Media/Broadcast Centre. Finance staff have been advised that the Economic Development Division is pursuing this possibility on several fronts with good potential for success.

4. Financial Risk and Possible Risk Management Strategies

A full guarantee from the Province will eliminate the financial risk to the City. The Province, given the enormous fiscal benefits that would accrue to it, would indemnify variances from the projected operating budget, cost escalations in construction of the facilities, as well as general inflation, exchange rate and interest rate risks associated with changing economic conditions.

Budget Estimation Variances: The fundamental financial risk in staging the Olympic Games is the impact of potential variances in budget estimation. Past Olympic Games do not provide enough data to prepare statistically substantiated estimates of the actual variability of the various budget items. However, a simplistic sensitivity analysis has been applied to the proposed OCOG-funded budget to determine the bottom-line impact of various levels of overall budget estimation variance.

In testing the impact of broader unfavourable variances, a number of the more stable or more conservative budget items were held constant while other less conservative estimates have been varied. The values held constant were:

i) The IOC grant amounts, which will be set in advance through contracts;

ii) The joint-venture-related revenues, already reduced by 26% from the Atlanta actual values;

iii) The advertising and promotion budget, already 32% greater than the Atlanta figure; and

iv) The defined, Toronto portion of the sports venue budget.

Applying an overall 5% unfavourable variance to the other entries results in a $72 million deficit. On the other hand, a favourable 5% variance results in a $210 million surplus, as compared to the $87 million surplus projected in the Master Plan.

Exchange Rate Risks: Foreign exchange risk arises when there are assets, liabilities or cash flows in a currency other than the local currency, and is related to the unpredictability at which the foreign currency can be exchanged into local currency. While the majority of revenues and expenses associated with hosting the Olympic Games in Toronto will be in Canadian dollars, it is expected that broadcast and TOP sponsorship revenues will be in U.S. dollars. These two revenue sources represent approximately $1.1 billion or 42% of total anticipated Olympic revenue indicated in the draft Master Plan. A strengthening of the Canadian dollar against the U.S. dollar would have a negative impact on these revenue sources when converted to Canadian dollars, while a weakening of the Canadian dollar would have a favourable impact.

It is noted that for the Sydney 2000 Olympic Games, the Government of New South Wales has provided an explicit guarantee to convert $US revenues receivable by the Organizing Committee from television rights and TOP sponsorship up to $US 737 million at the budgeted exchange rate. The government has done this through the use of forward exchange rate contracts. The Sydney Organizing Committee for the Olympic Games (SOCOG) will be managing the foreign exchange exposure on the balance of budgeted US$ revenues (estimated at $US 100 million) through additional hedging agreements.

Interest Rate Risks: Interest rate risk would arise if OCOG has interest-sensitive assets, liabilities or debts resulting from the Olympic Games. Generally, it does not appear that OCOG will acquire any interest-sensitive assets. Based on Finance staff's preliminary cash flow estimate, it also does not appear that the Olympic Games budget will require any long-term borrowing. Given substantial differences in timing of revenues and expenditures, some short-term borrowing is projected to be required over the next several years. This is partly necessitated due to the funding and early timing requirements for the larger sport venues (i.e. the Olympic Stadium and the velodrome). Positive cash flows in the last several years prior to the event, particularly from the IOC grants, will be sufficient for repayment of the debt. No permanent debt is projected beyond 2008. While the exact timing of expenditures has yet to be detailed, the $19 million interest expense allowance included in the Master Plan budget appears to be adequate for servicing the expected amount of short-term debt.

Inflation Risk: Inflation has the potential to increase the cost of Olympic related expenditures. If related revenues do not increase accordingly, OCOG, and thus the City, may face some financial exposure. There may be a particular risk of inflation as a result of the large amount of construction activity associated with the sports venues, supporting facilities, and infrastructure. If the major construction phases take place when the economy is at or near full employment, as is the case today, increased competition for resources and could increase costs.

The best strategy to mitigate the impacts of inflation would be to negotiate fixed price contracts with as many suppliers, as early on in the process, as possible. This would spread the risk of inflation to the suppliers. The Master Plan takes this approach, wherein PCL Constructors Ltd. has indicated its willingness to negotiate fixed price contracts for the construction of the OCOG facilities. Again, the impact of potential conditions or exceptions that may appear in the final contract will be fully assessed by Legal and Finance staff.

5. Fiscal Impacts on Senior Levels of Government

In order to proceed on a fiscally prudent basis, the Province must provide a guarantee to indemnify the City against any potential deficits in OCOG's operating and capital budgets. Senior levels of government will enjoy direct fiscal benefits arising from the economic stimulus of staging the Olympic Games.

Both the Federal and Provincial Governments have taxing powers through legislation for income taxes and consumption taxes. For the Federal Government, income taxes include those from persons and corporations. Federal excise taxes include the GST, energy taxes and custom import duties. In addition, Employment Insurance premiums constitute more than 12% of total revenues. Only 4.8% of total Federal revenues are from non-tax sources. In other words, over 95% of the total revenues are heavily dependent on general economic conditions, which have experienced substantial growth in the last few years. Income taxes and consumption taxes have risen almost 30% in the last 7 years.

Similarly, 77% of the 1998 Provincial revenues come from various forms of taxes. Personal and corporation income taxes make up 49%, while consumption taxes such as PST, gasoline, fuel and tobacco taxes making up 28%. The Province collects gasoline tax in the order of $2 billion annually. Although the Ontario Government has reduced Provincial income tax rates by over 30% since 1995, the booming economy has and continues to bring in increasing tax revenues.

In contrast, the City of Toronto's only taxing power is through real properties. A general improvement of the economy does not necessarily translate into property tax dollars for the City.

Based on an analysis using the Conference Board of Canada's Tourism Economic Assessment Model, the Olympic Games could generate up to $5.6 billion of economic activity (GDP) within Ontario. This will be due to the expenditures resulting from the $2.8 billion Olympic Games budget, the $823 million private sector development of support facilities, broader Waterfront infrastructure development that the Olympic Games will spur, and increased tourism expenditures during and after the Olympic Games. The Olympic Games' role in accelerating the development of Waterfront infrastructure could contribute to a further $2.4 billion of economic activity.

Olympic Games-related expenditures will result in an estimated 116,000 person years of employment that will generate over $3.6 billion in total wages in the Province. These wages will translate directly into increased sales, GST and income tax revenues for the Federal and Provincial governments. Total Federal taxes associated with hosting the Olympic Games, including direct, indirect, and induced impacts are estimated at $941million, Provincial taxes are estimated at $866 million, while the total increased municipal taxes in Ontario are only expected to be in the order of $221 million.

6. City Benefits Associated with the Olympic Games

On the most obvious and tangible level, the Olympic Games will provide the City with new and substantially improved sports and recreational venues. But there is much more.

The Games will be a catalyst in Waterfront renewal and the associated infrastructure improvements. The improved transportation and transit facilities should then reduce travel times and help spur development in the City's downtown. The environmentally remediated Portlands and the water quality improvements in the Inner Harbour will contribute towards the waterfront becoming a valuable leisure resource for all of the City's residents. These are benefits that are difficult to quantify.

In addition, it is estimated that out-of-province visitors will inject $360 million into the local economy, during the event and in the months immediately before and after. Furthermore, the sustained tourism impact could potentially be much larger. In Barcelona, the number of visitors increased from 1.7 million 1991 (the year before the Olympic Games were held there), to 2.7 million in 1995. Hosting the Olympic Games clearly played a major role in this increase. For Toronto, it is estimated that the hosting of the Olympic Games in 2008 could increase overnight tourist visits by 1 million per year for the five years following the Olympic Games. This increase in tourism could bring an additional $350 million into the Toronto economy for each of those five years, and contribute 8,000 person years of employment.

Finally, the Olympic Games will provide a unique opportunity to provide the world with a positive image of Toronto as a favourable place to visit, invest and live. Hosting the Olympic Games would also provide an opportunity to showcase Canadian technology and expertise to the world.

7. Conclusion

Finance staff's review of the budget has found that the stated numbers in the proposed operating and capital budgets for the Toronto 2008 Olympic Games appear to be generally reasonable and valid, given the information currently available. The proposed budget was developed by TO-Bid through a direct evaluation of budgeted and actual accounts of other Olympic Games, in particular from the actual 1996 Atlanta Olympic Games accounts, which appear to be the most current and comparable.

Hosting of the Olympic Games in 2008 will provide tremendous direct and indirect economic benefits to the City, the surrounding region, and more broadly, the nation. The Olympic Games will also act as a catalyst for City building resulting in improved housing, infrastructure, culturally and recreational facilities. As a result of the broad range of these benefits, the hosting of the Olympic Games has historically been a co-operative effort between the various levels of government in the host country, the private sector, and stakeholder groups. The expectation is that this will be the case for the Toronto 2008 Olympic Games.

Finance staff support the proposed application for the 2008 Olympic Games if senior levels of government indemnify the City against any potential operating or capital deficit.

Hosting an event such as the Olympic Games will also require substantial support services from each level of government. Resources required of the City will include police, emergency services, transportation, parks, housing services and waste management services. The City will have to plan for these expenditures to ensure funding is available in the year of the Olympic Games. Historically, other levels of government have absorbed the costs for the services within their own jurisdictions such as security, health services, and immigration. This is expected to be the case for the Toronto 2008 Olympic Games.

B. Economic Impact

1. Opportunities and Impacts

Hosting the 2008 Olympic Games in Toronto is expected to provide a number of economic benefits to the City and its residents, as well as to Ontario and Canada more broadly. It is estimated that the Olympic Games could generate up to $8 billion of economic activity (GDP) in the province. That includes $2.8 billion of infrastructure improvements. Some of these may or may not take place without the Olympic Games, but probably over a longer time-frame; the Olympic Games clearly serve as a catalyst.

Total employment associated with the Olympic Games, and its indirect and induced impacts, may exceed 165,000 person years of employment, generating over $5 billion in total wages in Ontario.

Governments will benefit from increased taxes, particularly additional sales tax, GST and income tax revenues. Total federal taxes associated with hosting the Olympic Games, including direct, indirect and induced impacts, are estimated at $1.4 billion; provincial taxes are estimated at $1.2 billion; and total municipal taxes in Ontario could be $275 million, including $100 million for the City of Toronto.

Table 1 shows the expected economic activity associated with hosting the Olympic Games. Column 1 shows the initial expenditures associated with each type of activity. Columns 2-4 show the impact of these expenditures on total output, wages and employment in Ontario. The figures in Columns 2-4 include indirect and induced impacts.

Note that in the above table, the total impact on output (GDP) is roughly the same as the initial expenditure, because the impact of imports is offset by the induced multiplier effect. That is, expenditures in the economic impact framework have three kinds of impacts:

1) The direct impact of an expenditure is significantly less than the total expenditure, because part of the expenditure is spent on goods and services imported to Ontario. The imported portion of expenditures does not increase economic activity in Ontario.

2) Indirect effects are the result of economic activity and employment created from backward linkages to suppliers.

3) The induced effects result from the additional spending of persons who work for the firms that directly benefit from the economic stimulus.

Pre-event

Up to $1.5 billion in construction expenditures have been identified that are directly associated with holding the Olympic Games in Toronto in 2008. In addition, up to $2.8 billion of infrastructure improvements have been identified.

OCOG Facilities $ 687 million

Olympic Village $ 313 "

Media Village $ 310 "

Broadcast Centre $ 150 "

Infrastructure (maximum) $ 2,800 "

These improvements to infrastructure and facilities benefit Toronto residents in two ways. Most importantly, they will provide a legacy that Toronto residents will enjoy for years - enhanced recreational opportunities, cleaner water, and a more attractive and accessible city. Constructing these facilities also provides many person years of direct employment, as well as significant economic spin-offs (multiplier effects).

The economic impact of constructing these facilities varies, based on who is paying for them and the likelihood of their construction in the absence of the Olympic Games. The OCOG facilities are paid for out of the Olympic Games budget (largely financed by international broadcast rights); therefore, their construction will inject $687 million into the local economy. Of that, $481 million will be spent on competition facilities located within the City of Toronto.

The Olympic Games will also spur other construction expenditures - housing, the broadcast centre and infrastructure improvements. Some of these expenditures would happen without the Olympic Games. However, the Olympic Games provide the impetus to accelerate these projects, and may prompt senior levels of government to more substantially participate in their development. The Olympic Games also stimulate private sector investment, e.g. new hotel construction for the anticipated increase in tourism.

Hosting the Olympic Games

The operating expenditures in the Olympic Games budget will also provide a stimulus to the Toronto economy. TO-Bid has included a salary component of $440 million in the budget. These are new jobs, estimated to provide 10,000 person years of employment. The total jobs (measured in person-years of employment) associated with this phase are estimated at 38,000, which includes indirect and induced employment. The total Olympic Games budget expenditure shown in Table 1 was reduced by $100 million from the Master Plan to account for expenditures outside Toronto, primarily foreign travel and the cost of purchasing overseas advertising space.

In addition, out-of-province visitors will inject an estimated $360 million into the local economy, during the event and in the months shortly before and after. Visitor expenditures could generate over 8,000 person years of employment.

Sustained Impacts

The sustained tourism impact could potentially be much larger than the increase in visitors during the event. Consider Barcelona's experience, before and after their 1992 Olympic Games. The number of visitors to Barcelona increased from 1.7 million annually in 1991, to 3.1 million in 1995. If the 2008 Olympic Games increased the number of overnight visitors here by one million persons per year, with each visitor spending just $250, this rise in tourism could bring an additional $250 million a year into the Toronto economy.

The expected increase in sustained tourism also helps to support the construction of new hotel rooms. For example, if 65% of the one million additional visitors stay in hotels, based on three days per visit and two persons per room, Toronto would need 1,100 new hotel rooms (at a 80% occupancy rate).

The legacy of world class athletic facilities that would be left by the Olympic Games would also enable Toronto to compete successfully for other major sporting events in the future - a difficult kind of impact to measure, but a sustained impact nonetheless.

2. Considerations

The above analysis, summarized in Table 1, does not include estimates of economic activity displaced by the Olympic Games. There will be some displacement associated with hosting an event of this magnitude in the city. Three potential kinds of dislocation costs have been identified.

First, some visitors that come to Toronto because of the Olympic Games may displace visitors that would have come here if the Olympic Games were held elsewhere. That becomes less of a factor if people re-schedule rather than cancel their visit to Toronto, and if concurrent events are also re-scheduled.

Operational decisions can have a significant impact on displacement costs. In a worst case example, there were fewer total overnight visitors to Atlanta in 1996, the year the Olympic Games were held, compared to the year directly preceding the Olympic Games. The reason? Their major downtown convention centre was unavailable for five months in 1996 while it was converted to a broadcast centre. Since our Trade Centre and Convention Centre will be used as venues, some events and economic activity associated with them may be lost; however, it is anticipated that this impact will be modest.

The greatest potential dislocation could be on the normal operations of the city, in particular the transportation infrastructure serving the financial district. Programs and policies can mitigate the potential displacement, i.e. some of the $2.8 billion in infrastructure spending will help facilitate the movement of goods and people into the core. In addition, the long lead-time allows transit operators, employers and employees to make contingency plans. Some workers might work at home during this period, and others might work a bit earlier or later for the three-week period.

The third kind of potential displacement cost includes relocation costs for firms directly affected by Olympic Games venues and facilities, particularly in the port area. These relocation costs could also be shown as part of the economic activity associated with the Olympic Games, particularly if the City implements a relocation/retention strategy to keep businesses within Toronto. To that end, City staff will work with OCOG to develop an effective relocation plan aimed at maintaining industry and other businesses within the City of Toronto. Such plan to include:

· Discussions with affected businesses to determine specific land, building and location requirements;

· Identifying appropriate TEDCO or City-owned properties as potential relocation sites;

· Working with affected businesses to ensure appropriate timing for relocation; and

· Reporting on the progress of relocations as part of the regular report on the Olympic Games.

The economic impact framework used in this report also assumes that there are unemployed resources available in the Toronto region. If these resources have to be imported, the economic multipliers will have a smaller impact on Ontario and Toronto than shown in Table 1. If the entire North American economy were at full employment during the construction phase of this project, resources would have to be re-allocated from other projects in order to complete construction for the Olympics. This would increase wages and prices without increasing employment and output levels.

3. Conclusion

Various studies on the benefits deriving from the Olympic Games generally reflect increased economic activity, new job creation, new levels of tourism, development of athletic facilities, and the creation of new permanent housing. It is instructive to look at the economic experience of previous Olympic Games (stated in equivalent Canadian dollars):

Barcelona 1992

• $8.9 billion in economic investment to host the Olympic Games.

• 65% increase in the number of tourists to Barcelona within three years of hosting the Olympic Games.

• Athletes accommodation was converted to permanent housing.

(Source: Official Report of the Olympic Games of the XXV Olympiad Barcelona)

Seoul 1988

• 63% increase in the number of tourists to Korea within three years of hosting the Olympic Games.

• $446 million contributed by the Seoul Olympic Organizing Committee on the Seoul Olympic Sports Promotion Foundation.

• 10,000 new apartment units as a legacy from the Olympic accommodation.

(Source: Official Report of the Seoul Olympic Organizing Committee)

Los Angeles 1984

• 37,500 new jobs created and additional work for 37,500 existing employees.

• $3 billion economic impact resulting from the Olympic Games.

• Over $100 million donated by the Los Angeles Olympic Organizing Committee to the Amateur Athletic Foundation.

(Source: Los Angeles Olympic Organizing Committee)

Hosting the Olympic Games in Toronto provides a number of intangible benefits to residents, from an increased awareness of physical fitness to an enhanced sense of community. Staging the Olympic Games themselves provides direct economic returns. More importantly, the Olympic Games sets in motion and reinforces the opportunity to implement a long-tern economic strategy, one which supports Toronto's economic shift from Canada's dominant city region to a globally-competitive world city.

Potentially, the greatest economic impact of hosting the Olympic Games is the free publicity that would result from the world watching Toronto on television for three weeks - a Toronto that is seen as a great place to visit, invest and do business in, and live. The chance to promote Toronto as a world class city, with a quality of life second to none, would greatly enhance our ability to attract new businesses as well as tourists.

C. Housing in the Olympic Games

1. Housing Production in the Olympic Villages

Introduction

The Olympic Athlete's and Media Villages will provide much needed housing units. The approach to this housing production will reflect three key features of today's context:

· it will be part of an emerging plan to develop the overall Waterfront into a vital urban space with mixed-use communities

· the development must satisfy City Council in addressing the great need for affordable housing

· the Villages must be developed "off book" - that is there is no cost to the Olympic Games and development is undertaken by the private sector

The two Olympic Villages - Athlete's Village and Media Village - provides a means to realize the development of key parts of the Waterfront, as described in the Planning section of this report. They will become new neighbourhoods with diverse populations, continuing the Toronto heritage of livability and social mix. The Villages will become flagship elements of an overall strategy for the Waterfront development, for which a framework is emerging from the Waterfront Redevelopment Taskforce. The community-wide, inter-governmental Waterfront partnership provides the opportunity to meet Olympic Games housing priorities that require an equally ambitious approach.

Each Village would be a portion of a new neighbourhood: the Athlete's Village within a new Portlands neighbourhood and the Media Village within the West Don Lands neighbourhood. In each case the Olympic Games housing would account for approximately 2,000 out of the 6,000 to 7,200 units in the new neighbourhood. The Villages would be developed within the context of the secondary (Part II) plan being prepared for the Portands and similar area planning taking place for the West Don Lands. These processes will help clarify infrastructure and environmental costs, staging of development, the pattern of streets, blocks and public spaces, and overall built form.

The Housing Production Targets

The two Villages would generate approximately 4,000 post-Olympic units, as described in the draft Master Plan. Based on the anticipated needs for affordable housing, the development potential for the sites and in recognition of public inputs for the development of the Villages, the following unit targets have been established by staff:

(i) 800 to 1,000 housing units (20% to 25% of total housing units) for qualifying families and individuals on Toronto's housing waiting list and 800 to 1,000 housing units (20% to 25% of total housing units) for moderate market rental and low end of market condominiums;

(ii) 2000 to 2400 units (50% to 60%) will be ownership units developed on a market basis without defined affordability restrictions.

The 20 to 25 percent low-income rental units would meet the most stringent definitions for affordable housing in the Official Plan. The second 20 to 25 percent of relatively affordable market units would meet Official Plan affordability definitions that pertain to overall income ceilings or guidelines and/or "low end of market" housing.

These units will meet designated "price points" that ensure affordability, which will be arrived at through negotiations on the specific resources to be contributed. In the case of the moderate-market-rent units, the incentives provided by the City will be the basis for reducing the rents to significantly lower than what would otherwise be charged in the market. This will enable these units to be affordable to households with lower-middle incomes who do not need rental assistance. It will also reduce the ongoing public cost of any rent supplement. Low-end condominiums will be part of the diverse "product" produced by the developer both in order to meet the mixed-income profile of today's condo demand and to facilitate the marketing of 2,400 units in a short period after the Olympic Games. Work in progress for the Waterfront Redevelopment Taskforce suggests that 12 percent of condo units across the broader Waterfront might sell for under $130,000.

Strategic Approach

In order to meet the requirement for "off book" development, the Villages would be developed efficiently through private-sector development contracts. Achieving affordable housing requires that public resources be brought to the table. Market-driven development can be expected to produce some low-end condominiums, and may produce some high-end rental buildings. Public inputs are required to achieve any significant share of rental housing, and to enable housing to be affordable to low- and moderate-income tenants.

Four tools are available for the production of affordable housing and units to be rented to qualifying families and individuals on the City's housing waiting list:

· governments can provide public land at reduced cost. Land-for-housing precedents of have been set in 1999 by the City, provincial, and federal governments in response to the Homelessness Action Task Force. All lands in the West Don Lands and in the South-of-Ship-Channel site preferred for the Athletes' Village are owned by a mix of federal, provincial, and City agencies. (In the event that the Athlete's Village were developed instead on Polson and Cousins Quay north of the Ship Channel, a majority but not all lands are publicly owned.) Public land, the key to creating the development value of the site in the first place, is likewise a key to ensuring affordable housing. A Waterfront development strategy, including infrastructure and environmental investments, will create a large land value The sale of these lands could generate proceeds to government landowners far exceeding revenues foregone on the affordable housing component.

· using incentives adopted by the City as part of its strategy to encourage affordable housing, along with related incentives by the Province. These include a reduced property tax for new rental housing, an exemption from development charges for affordable rental housing as defined in the by-law, waiver of planning and building permit fees and parks levy for eligible affordable rental housing, and a three-year rebate of Provincial Sales Tax (PST). Some of these need to be extended in time or scope in order to apply to the Olympic Villages.

· rent supplements in the form of a contract with a landlord whereby a monthly public payment covers the difference between an agreed market rent and the rent that a low- or moderate-income tenant can afford. A $50 million rent supplement program was announced by the Province in March 1999 in response to the Homelessness Action Task Force, and uses extra federal funds flowing to the Province under the Federal/Ontario housing devolution agreement.

· governments can provide capital subsidies (equity) to enable rental housing to break even at blow the high-end rents normally required to carry the mortgages for new housing.

Affordability can be achieved through a combination of the four tools just described. Land subsidies and existing City and provincial incentives should be used regardless of the mix of other tools. Zero land cost and existing incentives can lower the average 1999 rents to the vicinity of $1,000 or $1,100. Average 1999 true market rents for new rental housing (approximately 760 net square feet average, or a small two-bedroom) in these locations are estimated at $1,200 to $1,250 monthly. Provision of land at no cost may, depending on assumptions about return on investor capital and turnkey developer profit, reduce rents by $100 to $200 monthly. Existing City and provincial incentives may decrease rents by up to about $50 per unit monthly. This $1,000 or $1,100 level is referred to as "moderate market rent"; it is no more than 10 percent above average downtown rents for much older housing, and is well below normal market rents for a brand new unit. "Moderate market rents" in return for public incentives and land contributions would need to be ensured through agreements governing the rental portion of the Olympic Villages.

Regardless of the expertise brought to bear and the level of private-sector involvement, there is risk related to development and financing costs and market conditions 8 or so years into the future. A mechanism must be developed to ensure that the Olympic Villages will be developed under whatever market conditions prevail at the time. For example, it would not have been possible a decade ago in 1990 to predict the low interest rates, lack of condo demand, or slack rental markets of the mid-1990's. Integration of the Villages into a long-term Waterfront development strategy, through a special agency with a long-term urban development mandate, provides a way to deal with this. Unforeseen risk relating to costs, environmental regulations, and market conditions should be assumed by the waterfront agency, as part of the overall agreements.

In order to ensure the construction of the Olympic Villages, a risk/profit-sharing agreement can be entered into between the agency charged with the development of the waterfront lands and one or more private developers. Each party would be required to guarantee the construction of the Villages for the Olympic Games prior to the bid award. However, land costs and other charges would be fixed at a date just prior to the start of construction. This allows the developer some flexibility to set unit prices based on the market conditions prevalent at the time. As the agency charged with the development of the waterfront lands will be assuming risk on the land revenues, it is reasonable to assume the two parties would enter into a profit sharing agreement on revenues achieved after all construction costs are covered.

The housing strategy outlined in this report has been developed through on-going discussions with housing stakeholders. An update on these will be available prior to Council considering approval of the Olympic bid at the end of February 2000.

2. Protection for Tenants, People without Homes and Neighbourhoods

It is recommended that Council endorse the development of a Resident's Right's Policy to ensure the protection of tenants, people without homes and neighbourhoods during the period prior to and during the Olympic Games.

Based on the experience of other hallmark events, the current housing and homeless situation for Toronto as documented by the Mayor's Homelessness Action Task Force, and community feedback such a strategy is required to respond pro-actively to community concerns and to mitigate any negative impacts on tenants, homeless persons and neighbourhoods.

Responsibility for implementing the strategy belongs equally to the City, the provincial and federal governments, and to the Olympic Games organisers, as no one partner can implement the strategy without the full support of the other partners. Details on the specific areas of concern, potential opportunities, recommended legislative amendments, program responses and implementation issues are provided an attachment to this report. The elements of the strategy are summarised below.

Protection of Tenants

During Olympic Games and other hallmark events in other cities, some tenants lose their homes primarily because of speculation. The strategy proposes to limit Olympic evictions in two ways:

(i) through initiatives which would reduce speculation, e.g., visitor accommodation strategy, worker accommodation strategy; and

(ii) through initiatives which would improve security of tenure, e.g., enhanced legislative protection, service strategy, building standards improvements and enforcement protocol, and student residence strategy.

Experiences from other cities show that where landlords decide that the Olympic Games will offer the opportunity to make high profits from accommodating visitors, evictions and rent increases occur. This is most often reflected in home rental brokerage schemes promising windfall gains for owners and high fees for accommodation brokers, or large scale conversions of lower cost accommodation, such as rooming and boarding houses.

Managing Visitor Impact: Experiences from other cities show that realistic visitor projections and having a strong visitor accommodation strategy can play a critical role in discouraging speculation. It is anticipated that there will be a strong demand for accommodation beginning in advance of the Olympic Games, and peaking during the Olympic Games themselves. Initial estimates identify that 1.5 to 2 million visitors will come to Toronto and southern Ontario for the Olympic Games. One way to protect tenants from evictions and loss of rental housing through conversions and redevelopment is to implement a visitor accommodation strategy that may include:

(i) ensuring organizations involved with the Olympic Games produce realistic visitor projections so that potential demand is not overstated;

(ii) requiring an undertaking by the Olympic Games organizers that they will discourage use of rental housing and low cost residential hotels by Olympic visitors and encourage alternatives such as new hotel/motel accommodation, homestays, and so on;

(iii) developing strategies for diverting demand away from the rental sector, which may include having the Olympic Games organizers partner with the tourism industry to develop a voluntary Olympic accreditation program (i.e. by agreeing to operate within a specific code of ethics, tourism based businesses would receive some form of Olympic "stamp of approval" and other related incentives); and

(iv) conducting a cost-benefit analysis of how the Olympic Games would impact on rental housing, in partnership with the landlord community, and communicating findings.

Managing Demand for Housing due to Employment: While tourists can have the most visible impact on rental housing supply, the anticipated increase in employment opportunities generated by the Olympic Games will also put pressure on supply. Unlike tourist accommodation, this demand may impact all neighbourhoods and all housing types, including low-cost rental housing. Should Toronto be selected as host City, a worker accommodation strategy should be developed by the Commissioners of Community and Neighbourhood Services and of Economic Development, Culture and Tourism.

Improving Security of Tenure: The Province under the Tenant Protection Act (TPA) establishes security of tenure protection. This report proposes additional temporary measures in the context of the Olympic Games in the context of the Resident's Rights Policy.

Security of tenure means that a tenant cannot be forced to leave their home except for very specific reasons, and through a legislated process. A tenant can be evicted because of something they have done (e.g. damage or non-payment of rent) -- called "at fault" evictions. Tenants can be evicted because of something the landlord has done (e.g. converting the unit to another use, renovation, demolition, requiring unit for landlord's own use) -- called "no-fault" evictions. Landlords are required to serve notice of termination on the tenant if they want to evict the tenant, and may enforce the notice through the Ontario Rental Housing Tribunal by filing an application with the Tribunal. Most residential rental tenancies fall under the security of tenure rules of the TPA.

To prevent Olympic Games-related evictions, it is recommended that the Province be requested to make further enhancements to security of tenure rules which would limit no-fault evictions, mitigate at-fault evictions, extend protection to certain types of accommodation, and change procedures. Examples of enhancements that may be appropriate include:

(i) applying temporary security of tenure protections to long-term tenants of residential motels;

(ii) prohibiting conversion of rental residential units to suite hotel units;

(iii) establishing processes and tests to ensure that notices of no-fault evictions (such as landlord moving into the unit or due to renovation) are valid; and

(iv) establishing processes for at-fault evictions which would, as appropriate to each case, encourage mediation, recognize the pattern of rent payments, require that alternate solutions have been considered (such as rent bank assistance), delay the date the eviction would take effect until after the Olympic Games, and take into account the tenant's ability to find alternate accommodation.

Strategy to Limit Olympic-related Evictions: In addition to legislative amendments, a service strategy which includes funding, education, mediation, referral and other supports can be an effective way to protect tenants. The City already has a number of initiatives in place that help protect tenancies, including the rent bank project, rental housing office, tenant information hotline, and early intervention project. The Province also provides support through its Homelessness Initiatives Fund and through funding for community legal aid centres. Services are provided by community agencies, including housing help centres (which operate housing registries).

Building Standards Improvements and Enforcement Protocol: Tenants may sometimes be evicted because of repair work, where the unit is unsafe for occupancy. If Toronto is selected as host City, Council should request that the Commissioners Urban Development Services and of Community and Neighbourhood Services to develop protocols for buildings standards enforcement during the period before and during the Olympic Games. These protocols would balance the City's responsibility to keep homes safe with the lack of housing alternatives available to the occupant should they be required to vacate.

Federal funding under the Residential Rehabilitation Assistance Program (which is administered by the City) should be directed to supporting the goals of protecting low cost rental housing from demolition, renovation or conversion by improving its quality while keeping rents low.

Student Residences: North York Community Council, on October 21, 1998, recommended that no expropriation of student residences, or displacement of student residents on campus be allowed to occur as a result of any Olympic-related activity on the York University Campus.

It is proposed that the Province be requested to encourage universities and colleges throughout Ontario which may provide housing for the Olympic Games and/or for the acclimatization centres, to develop housing strategies jointly with their students. These strategies would minimize the impact of the Olympic Games on student residences, whether or not the residencies are covered by the TPA.

Protection for People without Homes

Olympic Games and other hallmark events are characterized by large influxes of visitors and greater demands on the use of public space. Although this influx of visitors may have positive benefits for tourism and other businesses, it can also create challenges at the neighbourhood level for residents who must deal with these extra demands. For people who are homeless, this experience is exacerbated by the reality that they must live much of their private lives in public places.

Security and policing efforts related to hallmark events are often characterized by increased enforcement of laws and by-laws restricting loitering, panhandling or sleeping in public places as part of a general effort to reduce public disorder. This has often led to the forced movement of people who are homeless as a strategy to prevent them or discourage them from entering public areas in the vicinity of events.

In Toronto, Olympic venues will be located in areas where people who are homeless access services or make use of parks and other public spaces. It was clear during discussions with community groups that there is concern that people who are homeless will be adversely affected and will be subject to street sweeps and other related activities that encourage movement or discourage squatting. It is critical that a successful Toronto bid balances the right of people who are homeless to access services and public places with the security needs of the Olympic Games. If this is not accomplished, there will be strong opposition to proceeding with a bid from housing and community advocates.

The Police Working Group of the Advisory Committee on Homeless and Socially Isolated Persons has brought together key stakeholders to begin to address issues between the police, service providers and people who are homeless. They have made a number of recommendations relevant to the Olympic bid that are before the Police Services Board. These recommendations include expanded police training and education on issues of homelessness, formal linkages between the police and the Street Helpline/Community Information Toronto, as well as expanded opportunities for people who are homeless and service providers to participate in policing issues. It will be critical for the Olympic Bid to build on this work and to include the Police Working Group along with other members of the community in their deliberations in this area.

Enhancing specific services to people who are homeless can increase the number of options available to people living on the street and can reduce the potential of conflict with the police or security services. The experience in Toronto and in other cities has found that service responses are more effective over the long term than coercive measures like street sweeps. Coercive measures are far more likely to drive people further underground where service providers cannot reach them. They most often rely on the criminal justice system, which is more costly and cannot address the long-term need for housing and services.

Response on Homeless People: To minimize the impact of the Olympic Games on people who are homeless, the following elements of the overall strategy are proposed:

(i) acknowledge the rights of homeless people to equal protection, non-discrimination, and due process within the proposed Residents' Rights Policy, including a process to monitor these rights and to mediate grievances;

(ii) if Toronto is selected as host city, Council should request the Toronto Police Services Board, the Olympic Games organizers and the proposed Olympic Games Ethics Commissioner to work with community service providers and police to develop protocols and training for police, game's security officials and other enforcement agencies which would balance security requirements with the rights of homeless people;

(iii) Council should request that the Olympic Games Ethics Commissioner establish a code of conduct for the Olympic Games which reflects the security protocols referenced above; and

(iv) Council should direct the Commissioners of Economic Development, Culture and Tourism and of Community and Neighbourhood Services to make recommendations to Council for an Olympic Games parks strategy which would recognize the vital need for open space to the lives of many homeless people.

Protecting Neighbourhoods

Accelerated urban change, increased house prices and land values, and market speculation are characteristic of hallmark events. The most visible direct impact of hallmark events in residential neighbourhoods is the loss of housing stock through demolition for construction of venues and/or related infrastructure. Since the Toronto bid Master Plan calls for venues to be developed on non-residential sites, or held in existing facilities, the loss of housing stock due to development of venue sites will not occur.

Neighbourhoods located near venue sites may be under more pressure than other neighbourhoods due to rising land costs and housing loss related to infrastructure work and development. There are about 36,000 rented occupied dwellings in the 24 neighbourhoods abutting or adjacent to the waterfront, which may experience the most direct speculation impacts. Of those 24 neighbourhoods, 10 include census tracts which City research has ranked as falling within the priority areas for children, youth, seniors and immigrants (Urban Planning and Development Services, "Social Indicators And Priority Areas", July 1999.)

Response on Protecting Neighbourhoods: To minimize negative impacts on neighbourhoods, and to maximize the potential of the Olympic Games to contribute to neighbourhood goals, the strategy proposes the following elements:

(i) establishing Olympic Housing Centres in venue neighbourhoods to provide one-the-ground community supports such as information and education services, linkages to other support (including legal clinics, accommodation registries, housing help centres, mediation services, and rent banks). The Centres would also be the local "eyes and ears" of the proposed Olympic joint body, thereby supporting its monitoring role. The centres would be established through grants to existing agencies (estimated at $2.0 million), and would work proactively with local landlords to help avoid evictions.

(ii) undertaking local area impact assessments in neighbourhoods near venue sites (currently estimated at 24 neighbourhoods at a cost of $1.0 million), with a view to highlighting potential areas of concern and areas of opportunity, and developing strategies to maximize benefits. These strategies may result in proposals for funding certain initiatives (estimated at $1.0 million), and may identify a need for temporary legislative changes to improve protection for housing supply and encouraging new affordable housing.

Funding the Strategy for Tenants, Homeless People, and Neighbourhoods

The City is currently funding a number of initiatives that support tenants, homeless people and neighbourhoods. The Province through programs such as the Homelessness Initiatives Fund funds other initiatives. Funding will be required from within current departmental funding, provincial and federal sources for any new program or service expansion required as a result of hosting the Olympic Games

To support the strategy it is essential that Council obtain timely commitments from the appropriate senior levels of government to support the proposed affordable housing targets. At the same time, Council must accept its responsibility to fund specific services to support the protection of tenants, homeless persons and neighbourhoods.

Commitments Required to Implement the Residents' Rights Policy and Service Strategy

The following commitments are required to implement the Residents' Rights Policy and Service Strategy:

Commitments from the City:

(i) that a Residents' Rights Service Strategy be developed, upon selection of Toronto as host city, involving funding enhancements to existing services to help low-income people keep their housing and avoid eviction due to Olympic Games-related demand for accommodation; and

(ii) that associated strategies to meet Olympic Games-related demand for accommodation and other impacts be developed upon selection of Toronto as Olympic host city, including a worker accommodation strategy, a student accommodation strategy, a temporary Building Standards Protocol, a security protocol in regard to treatment of homeless people, a parks strategy to ensure residents' ongoing needs are met during the Olympic Games, and Olympic Games Housing Centres in neighbourhoods near Olympic venues.

Commitments from the Provincial government:

(i) that upon selection of Toronto as host city, special legislation be passed which would give effect to a Residents' Rights Policy, by making time-limited amendments to other legislation and establish measures to provide additional protection of tenants from Olympic Games-related evictions, and additional protection of rental housing from conversion, demolition and rent increases associated with Olympic Games-related demand for accommodation; and

Commitment from the Federal government:

that additional Residential Rehabilitation Assistance Program (RRAP) funding be allocated in the years leading up to the Olympic Games, to ensure the good condition and affordability of existing rental housing and limit its attractiveness for conversion, demolition, and speculation.

Commitment from TO Bid:

(i) That it will prepare, in consultation with City staff and community representatives and subject to the final concurrence of City Council, a visitor accommodation strategy with due emphasis on avoiding negative impacts of Olympic Games-related demand for accommodation;

(ii) That TO-Bid commit to the approach of continuing to use non-residential sites for proposed venues.

4. Implementation of Strategies for Tenants, Homeless People and Affordable Housing

Housing Co-ordinating Body

To carry the Resident's Rights Policy forward would require a co-ordinating body. This would be separate from TO- Bid, which is not directly responsible for protection of tenants, homeless people, and neighbourhoods, nor for housing production.

The role of the joint co-ordinating body would include the following:

(i) to be a on ongoing link between the municipal, provincial and federal governments, and, where required, with other municipal governments impacted by the Olympic Games;

(ii) to develop detailed recommendations for provincial legislative changes;

(iii) to establish evaluation criteria for approval by the appropriate levels of government and for monitoring achievements against those objectives;

(iv) to provide a forum to address and effectively channel community concerns about the impacts of the Olympic Games;

(v) to monitor impacts and, when required, make recommendations for legislative and program changes by the appropriate jurisdiction; and

(vi) to assess and report on the impacts of the Olympic Games within one year after the Olympic Games are completed, which would be useful to other cities planning hallmark events, and to Toronto in the event that future hallmark events are planned.

The joint body may include both staff and political representation from all three levels of government, representation from the agency sponsoring the Olympic Games, and representation from the tenant, landlord and homelessness communities. The joint body would have a liaison with the proposed Olympic Games Ethics Commissioner.

5. Cost of Implementation of Resident's Rights Policy

The City is currently funding a number of initiatives that support tenants, homeless people and neighbourhoods, and the Province through programs such as the Homelessness Initiatives Fund funds others.

It is estimated that the cost to the City to implement the Residents' Rights Program set out in this report will cost approximately $4 million.

6. Process to develop this Report

Strategies for protection of tenants, homeless people and neighbourhoods were developed by an inter-departmental working group comprising representatives from Community and Neighbourhood Services, Urban Development Services, the City Olympic Office, and the Legal Division. Representatives were also consulted from Public Health, the Finance Department, the Community Social Planning Council (which is preparing the socio-economic and equity impact study for TO-Bid). A reference process was established with tenant, homeless and landlord groups, and with staff from other departments, the Province, and agencies likely be affected by the Olympic Games. As well as monitoring the City's overall Olympic consultation with the community, input was obtained from the City's Advisory Committee on Homeless and Socially Isolated Persons. The input through this process was vital in formulating this strategy.

Considerable concern was voiced, in the community reference process, that the Olympic Games will cause an increase in evictions, higher rents and conversion of low-rent housing to other uses. Much concern was also voiced that the Olympic Games will increase the vulnerability of the homeless by leading to more contact with security officials and police and more reaction from the public.

Research on Olympic Games and other "hallmark events" in other cities validates these concerns. Unless firm measures are taken, hallmark events tend to have negative impacts on housing, falling most heavily on those least able to afford them - low-income tenants in the private sector and homeless people.

At the same time, there was some optimism that the Olympic Games might draw attention and action to the critical need for affordable housing in Toronto. The community members consulted want to be involved should the Olympic Games become a reality. Some stakeholders are willing to be part of implementing a strategy - on condition that Council defines a vision for the Olympic Games that addresses the protection of vulnerable people, tenants, and neighbourhoods, and the creation of affordable housing.

Using the Olympic Games to produce affordable housing was a strong theme in community input. In 1998 an ad hoc group, under the then chair of the Olympic Village Committee and involving City representatives, examined some strategies to create affordable housing. Active discussions were initiated in fall 1999 between key players at TO-Bid, the Province, the Mayor's Office, and the City's Shelter, Housing and Support Division. A key focus was how to meet the requirements of the Bid and the Province for an "off-book" approach while also meeting the affordable housing objectives of the City. Preliminary discussions have been held with key officials at the Bid, the Province, the City Planning Division, and the representatives of the Toronto Waterfront Revitalizaiton Task Force, all leading to the framework set out here.

D. Social Equity

1. Introduction

The Toronto bid organizers have begun the process of identifying the social-economic impacts of hosting the Olympic Games and have retained the Community Social Planning Council of Toronto (CSPCT) to assist in this work.

In the lead up to Toronto hosting the Olympic Games the City of Toronto has an ongoing role in promoting social equity through its various policies, programs, and funding of community agencies. The potential of $100 million in new municipal tax revenues provides a unique opportunity for the City to examine opportunities for new social and community investments. At the same time, it is recognized that new municipal revenues will be required to fund ongoing municipal services.

Assuming Toronto is successful in its bid to host the Olympic Games it will be important for the Olympic Games Organizing Committee to adopt policies that promote social equity, the distribution of benefits to the whole community and measures to mitigate any undesired social impacts.

2. Opportunities and Impacts

The International Olympic Committee has established no specific social equity requirements for cities bidding for the Olympic Games. Regardless, during the past decade bid cities have begun to examine the social implications of hosting the Olympic Games and implementing measures to promote social equity. The 2008 bid offers Toronto an opportunity to learn from the experience of other host cities and adopt an aggressive program of social equity goals.

To assist in the planning process the Community Social Planning Council has undertaken, on behalf of TO-Bid, a social-economic impact and equity plan. The CSPCT has held a comprehensive consultation process, including a literature review, public forums, focus groups, a self-reporting survey and a telephone survey.

The CSPCT report will cover a wide variety of issues, including: housing needs; employment opportunities; training/volunteering; social services; security/civil rights; community sports; community spirit; community participation/civic engagement; and impacts as experienced by groups such as the homeless and youth. It is anticipated that the CSPCT report will be completed by the end of February 2000.

The TO-Bid Master Plan calls for making Toronto the "world's most accessible city" for competitors, officials and spectators in its facilities, sites, services and amenities. This vision is consistent with the City's recently adopted Access and Equity policy.

3. Requirements

The Toronto Olympic bid has the opportunity, if carefully planned and executed, to enhance social equity opportunities in Toronto. The organizers have recognized the importance of managing the social impacts by their commitment to prepare a social-economic impact and equity plan. However, the success of any plan will depend on the actions taken to implement proposed recommendations.

It is therefore proposed that TO-Bid work with the Commissioner of Community and Neighbourhood Services to prepare an action plan as a follow-up to the CSPCT report.

It is also proposed that in addition to maintaining current social equity programs, policies and community grants, that the city examine opportunities for new social investments.

Lastly, it is recommended that the TO-Bid and the Olympic Games Organizing Committee commit to being guided by the City's social development principles and the City's policy on access and equity. Apart from this process of civic engagement, the City's social development goals can be enhanced through the Olympic Games' legacy - through the impact for training, volunteering, community spirit equity and inclusion.

4. Conclusion

A successful Olympic bid and Olympic Games requires a comprehensive and workable social equity strategy. The work of the CSPCT will form an important step in developing this strategy. Ultimately the strategy will contribute to public support for the Olympic Games while also addressing the real social needs of our City. This work should continue during and after the bid period.

E. Transportation

1. Introduction

The transportation component of TO-Bid's Master Plan is based on using, for the most part, existing transportation infrastructure and services - either it exists today, or it will by 2008. Key elements of the Master Plan include:

· A transportation demand management plan;

· A transportation system management plan;

· Strategic transportation investments that complement long-term City objectives;

· Environmental sustainability;

· Accessibility; and

· A focus on public transportation.

In reviewing the Master Plan, staff have followed the philosophy that the transportation demands of the Olympic Games should be met through existing or planned transportation infrastructure. New infrastructure should only be identified if absolutely required. All transportation services should be provided so that they can accommodate the needs of all users, including those with mobility challenges.

Accommodating the Olympic Games will require a fundamental shift of existing transportation resources and the acquisition of temporary resources for the Olympic Games period. However, staff believe the existing transportation system serving the central waterfront area, augmented as necessary, can meet the transportation needs of the Olympic Games.

2. Opportunities and Impacts

City of Toronto, TTC and GO Transit staff have reviewed the Master Plan with TO-Bid staff and consultants, and have determined that the overall vision is sound. The following presents staff's current perspective on the strengths and challenges of a Toronto waterfront Olympic Games.

Transportation Demands

Staging a three-week Olympic festival focussed on the waterfront presents a unique challenge to the City's existing transportation system. This system will continue to grow and mature between now and 2008, and should be able to provide the backbone of an expanded transportation system for the Olympic event. (The preliminary figures provided by TO-Bid on the extent of the transportation demands to be generated by the Olympic events seem realistic.)

The existing transportation system serving the central core accommodates significant volumes of people into and out of the City each day. It's unrealistic to assume this system can or should be able to provide the same level of service at the same time as serving the Olympic demands.

Accommodating the increased level of demand associated with the Olympic Games means reducing existing transportation demand into the central core area of the City, by as much as 30%. This will require a large-scale and aggressive transportation demand management plan to encourage shifts in travel demand and goods movement during the Olympic Games. In addition, the timing of the Olympic Games is critical. Holding the Olympic Games to coincide with traditional lower transportation demands, i.e. the peak summer vacation period, will be key to managing the transportation plan.

Enhancing Existing Transportation Services

Regional Transportation Services: GO Transit rail services will have to be upgraded to accommodate the anticipated regional demands for the Olympic Games. The idea is to funnel regional travel demands to temporary commuter parking lots located in the GO Transit service area and to shuttle these passengers by bus from the temporary parking to existing GO stations. To meet the regional travel demands, these upgraded services can be provided for the duration of the Olympic Games:

· Lakeshore: combination of express and local services every 30 minutes serving the Exhibition, Union station and the Portlands; additional service at peak times to accommodate large passenger demands.

· Milton: combination of express and local service every 30 minutes serving Union station and Garrison Common area; additional service at peak times.

· Georgetown: service between Bramalea and Union Station (including Garrison Common) every 30 minutes.

· Bradford: express service every 30 minutes between a temporary station in north Toronto (Downsview area) and Union station (including Garrison Common).

· Stouffville: hourly service between Union Station/Portlands and Unionville.

To operate these services, GO Transit will have to expand its rail fleet from the existing 32 trainsets to the 50 trainsets (identified in GO Transit's 20-year capital plan). The following will also be required:

· Upgrading Union Station passenger and rail facilities to accommodate the larger volumes;

· Adding train storage and servicing facilities, including daytime storage in the Don Yard area and night-time storage facilities; and

· Improving the rail corridors to eliminate major bottlenecks (identified in the 10-year plan):

· Port Credit to Oakville third track (Lakeshore West)

· Union station to Scarborough third track (Lakeshore East/Stouffville)

· Rail/rail grade separation (either Bradford or Stouffville lines)

· Bramalea pocket track (Georgetown)

· Sections of passing tracks (limited service corridors)

Co-operation from the railway companies will be required during the Olympic Games in order to provide these additional commuter rail services.

TTC Services: The existing TTC route and service network will provide the basis for serving the large number of visitors, volunteers and employees expected to travel to and from venue sites.

The waterfront area, where most major venues are planned, is already well served by higher-order transit facilities, notably the Yonge-University-Spadina (YUS) subway line, and has good north-south surface route access to the Bloor-Danforth subway line. The current subway lines and the surface route distribution network have adequate capacity to accommodate the expected demands; the challenge will be to provide effective transit service between the venues to the subway system.

It's expected that selected downtown roads will convert to transit-only or transit-priority operations, and that a large fleet of buses will provide service for passengers between the subway system and venues at Exhibition Place and the Portlands. For example, shuttle-bus service from the Portlands to the Bloor-Danforth line could be provided through transit-only lanes on the Don Valley Parkway to Castle Frank Station, Broadview Avenue to Broadview Station and/or Carlaw Avenue and Pape Avenue to Pape Station.

Similarly, service from Exhibition Place can be provided with streetcars from Bathurst Street to Bathurst Station and buses on Parkside Drive to Keele Station and/or Roncesvalles Avenue to Dundas West Station. Given the magnitude of the passenger demands, it's likely that, at some peak time, most or all of these roadways will have to be dedicated to transit operations.

Venues in the central area are within a reasonable walk of the YUS subway and can be accommodated without additional surface transit service. However, there will also be a large requirement for shuttle services between Union Station and the Portlands.

Fleet Requirements: The TTC's and GO Transit's greatest challenge will be to obtain an adequate fleet of vehicles and trained operators for temporary Olympic service. TTC's and GO's fleet acquisition program should be accelerated and retirements delayed to provide additional rolling stock of subway cars, buses, engines and rail cars. This will require additional funding in advance of the Olympic Games. Acquiring buses and operators from other transit properties will be part of an overall transportation plan for the Olympic Games.

Pedestrian Linkages: New pedestrian linkages in the waterfront area will ensure capacity and protection for the large volumes of people expected during the Olympic Games. That includes upgrading the Olympic Promenade (Queen's Quay), and links from the new Cherry Street GO Station to the Portlands site (from the SkyDome area to Queen's Quay, and from Ontario Place to Exhibition Place).

Required New Services

Portlands Olympic Shuttle Service: With the proposed location of venues in the Master Plan, the largest demand for travel during the Olympic Games is expected to be between the Portlands and Union Station. Many passengers travelling to and from the Olympic Stadium will want to reach the YUS subway and regional GO Transit services at Union Station. This will require a shuttle service, using either GO Transit commuter train service or on-street bus services.

A GO train service between Union Station and a temporary station at the Portlands could accommodate anticipated demands. If it's determined that this type of service isn't achievable, a shuttle bus service can be implemented. This will require a dedicated bus terminal area in the Portlands, reserved lanes on Lake Shore Boulevard or the Gardiner Expressway, and a temporary bus terminal in close proximity to Union Station.

In addition, the Transportation Plan can incorporate demand management strategies such as encouraging walk access, and spreading out demand by having attractions and events on the "Olympic Way" between the Portlands and Union Station.

Olympic Family Transportation: Olympic officials, athletes, coaches, media and sponsors and their guests will require dedicated transportation systems. The details will be developed as part of the Olympic Transportation Master Plan.

Transportation to Venues Located Outside the City of Toronto: The transportation needs of venues outside of the central area of Toronto will be developed as the venue locations are finalized. The focus for these locations will be on shuttle bus services from temporary parking facilities.

Impact on Existing Transportation Infrastructure

Providing the service necessary to accommodate the large volumes of Olympic Games-related transit passengers will require a high degree of transit priority on the area road network. Reserved lanes will be needed on many of the major roads in the waterfront area, on roads leading to the main receiving subway stations on the Bloor-Danforth subway line, and perhaps on the Gardiner Expressway and the Don Valley Parkway.

In short, the capacity of the central area road network will be severely reduced during the Olympic Games in order to accommodate Olympic officials, athletes, guests and spectators. Travel by private motor vehicles and service vehicles not associated with the Olympic Games will be severely restricted in the central core area during the three-week period of the Olympic Games.

While the preliminary transportation plans, for the most part, use existing infrastructure, some new infrastructure will be needed to accommodate the Olympic demands.

New, permanent infrastructure will provide long-term benefits, and generally have been previously identified through other studies:

· Union Station and surrounding track facilities will have to be upgraded by 2008, as outlined in GO Transit's 10-year capital program, to accommodate the large volumes of passengers anticipated to use the station to access regional train services, and the proposed shuttle service to the Portlands site.

· An additional platform at the TTC's Union Station will be required to accommodate the large volume of passengers accessing the subway system at Union station.

· Completing the Bremner Boulevard/Nelson Mandela Way/Fort York Boulevard link, from Spadina Avenue to Lake Shore Boulevard, is needed to accommodate transit and other demands.

· Completion of Queen's Quay east to the Portlands site and extension of Queen's Quay westerly to Ontario Place as a pedestrian route is required to implement the Olympic Promenade, and to provide a dedicated waterfront route for Olympic family transportation.

· Identifying the specific transportation infrastructure elements that will be required to provide accessibility and serve the three Olympic sites will be part of the venue planning exercises. New roads, pedestrian connections and, in some cases, bridges will be needed to service the Olympic venues.

Some new and temporary infrastructure will also be needed. These generally don't have a long-term benefit to the City, are required to solely accommodate Olympic transportation demands:

· Temporary commuter parking lots and shuttle bus services will be required to provide parking for visitors and transportation to the nearest GO or TTC station. The location and number of these parking lots have not been determined and will require more study on the origins of potential patrons, but it is anticipated that all of the lots will be located in the regions outside the City.

· A new temporary bus terminal will be required in the Portlands. Upgraded bus terminals will be required at the Exhibition Place site and at the main receiving TTC subway stations on the Bloor-Danforth subway line. It's anticipated that the Keele, Dundas West, Bathurst, Castle Frank, Broadview and Pape subway stations may have to be upgraded.

· A new GO Train Station will be required at Cherry Street to serve the Portlands Olympic site for the regular Lakeshore line services and the GO Shuttle service. Upon review, this station concept may evolve into two stations, a new permanent station on the Lakeshore line and a temporary station for the GO shuttle service.

· A new train station serving the Milton and Georgetown GO rail lines will be required at Exhibition Place.

· New grade separated pedestrian connections across Lake Shore Boulevard will be required at all three Olympic venue sites in the waterfront. These connections will have to be developed as part of the site planning exercises for the venue locations, and will have to be sized to safely accommodate the large volumes of pedestrians projected.

A third type of new infrastructure isn't required for the Olympic Games, but has been previously identified for other City purposes, and would be beneficial if operational by 2008:

· Front Street Extension;

· Simcoe Street Underpass (at the rail corridor);

· Strachan Avenue grade separation at the northwest rail corridor;

· Dufferin Jog Elimination; and

· LRT on Queen's Quay East.

3. Conclusion

The existing transportation system serving the central area of the City, expanded and augmented as required, can accommodate the anticipated demands generated by the Olympic Games. That's based on upgrading TTC and GO Transit services, and the limited provision of new permanent and temporary infrastructure.

This review has determined that a significant amount of work remains to develop the details of the transportation system for the Olympic Games. TO-Bid should undertake this work, in co-operation with City, TTC and GO Transit staff (the Strategic Transportation Planning Group), and create an Olympic Transportation Committee chaired by an experienced transportation professional to develop and Olympic Transportation Master Plan.

The Olympic Transportation Master Plan will have to be developed in the context of the Waterfront Revitalization Task Force on the Port Area Secondary Plan, and the Official Plan review. The Master Plan will have to:

· Develop an organizational structure to deliver transportation services;

· Develop demand estimates for Olympic facilities;

· Confirm and finalize the GO Transit and TTC services needed;

· Develop the marine transportation system;

· Confirm the new and temporary transportation infrastructure needs;

· Develop the Olympic family transportation system;

· Determine the role of the City Centre Airport; and

· Develop cost estimates for transportation services and infrastructure.

Because of the need for some venues to be located outside of the City, and for locating the temporary commuter parking lots in the 905 regions, these groups should start working with transportation staff from Durham, Halton, Peel and York Regions.

F. Planning

1. Introduction

Toronto's waterfront is a unique place, for its amenities and as one of the most recognizable images for Toronto on the world stage. By proposing a waterfront-centred Olympic Games, the Bid recognizes the significance of this area. The Bid could also advance the revitalization and the City-building objectives on the central waterfront by a decade.

The proposals in the Olympic Bid Master Plan will help implement Council's objectives to:

· Enhance the quality, uniqueness and significance of the waterfront as a place;

· Increase and improve public access along the waters' edge and between parts of the waterfront;

· Increase the availability of, and variety of public facilities and open space along, the waterfront;

· Contribute to environmental sustainability in the development of venues and transportation infrastructure;

· Provide new opportunities for housing within the City; and

· Strive for design excellence.

The Bid emphasizes environmental sustainability, which should extend to the use of leading edge environmental practices for energy conservation, storm water management, auto minimization, soil and ground water management, air quality and water conservation.

Transportation

Transportation infrastructure for the Olympic Games is covered elsewhere in this report. As plans are refined for the Olympic Games it's important to ensure that any new transportation infrastructure is developed in the context of long-term waterfront planning; and that public transit and environmental sustainability are prime considerations in planning and designing all transportation facilities used for the Olympic Games.

City-Building and Reinvestment

New Olympic venues, housing and plazas on the central waterfront will expand the area's diversity, attractiveness and livability. This approach supports the City's emerging City-building objectives for the central waterfront.

Building Olympic facilities across the waterfront including transportation and open space improvements will reinforce the City-wide significance of the waterfront and help to integrate underutilized lands into the fabric of the City. The Olympic plans will help to implement the waterfront vision to:

· Emphasize mixed use;

· Increase the quality and amount of open space;

· Improve streetscapes;

· Increase public transit;

· Open up a new piece of the City to the east of the downtown; and

· Provide opportunities for more housing in a mix of unit types available to families and full range of income levels.

Urban Design

The Olympic Bid Proposal is centred around the Inner Harbour. This area and the relationship between the natural and the built environment provides the stunning setting that's considered one of the critical attributes of a winning Olympic bid. In order to respect the distinctive characteristics of the Inner Harbour, proposals for new Olympic facilities, infrastructure and public spaces should address the City's Physical Form and Amenity policies, to:

· Ensure that all new public projects - including streetscapes, parks , public works and public buildings - are of high design standard;

· Reconnect the street grid to the waterfront and integrate the waterfront into a well-connected comprehensive open space system that includes river valleys and major streets;

· Preserve and enhance views to natural features, particularly the lake, down city streets and across publicly accessible open spaces;

· Integrate new development into the surrounding city by providing good pedestrian, vehicular, and visual connections to adjacent neighbourhoods, natural features, parks and open spaces;

· Promote a fine grain of development by encouraging lots and building types that relate to public streets in a pattern characteristic of Toronto; and

· Encourage a high quality of urban design for new buildings and structures, which harmonize with neighbouring development, by respecting existing listed or designated historic buildings, streetscapes or landscapes.

To achieve the City's urban design objectives, City staff will continue to work with TO-Bid to develop a structure plan for each of the three Olympic Rings, which identifies priority views, street patterns, and a framework for new parks and open space.

City staff will work with TO-Bid to develop design competitions for new facilities, including villages, venues and new parks, plazas and open spaces. The Master Plan states that, for the Olympic Villages, a "proposal and selection process for a design/developer competition will result in an early commitment by developers to an imaginative and winning design." A joint public/private agency could run these competitions, as in the Barcelona and Sydney Olympic Games.

Due to the structure of the Toronto bid, design competitions for venues will mean working with those responsible for the guaranteed price components of the Olympic Games. This will maintain the principle of risk avoidance. Any brief for design competitions will include artists on design teams to support the City's public art policies, and would be subject to budget limits and construction deadlines, as required by the Bid. Any brief for design-only competitions for price-guaranteed facilities would be subject to project management control by the guarantor.

2. Opportunities and Impacts

The Olympic Master Plan describes three rings of activity along the waterfront - west, east and central. Each of these rings includes Olympic facilities and plazas, and will include new infrastructure supporting longer term City-building objectives.

Olympic Rings West

The Olympic Ring West includes a new velodrome, potential new tennis facilities and use of the National Trade Centre for a variety of sports. The proposal also suggests expanding the National Trade Centre to accommodate gymnastics. These proposals reinforce the significance of Exhibition Place as a centre for public recreation, sports and trade facilities, and could contribute to its long-term financial viability.

The Master Plan supports City policy by proposing: improved connections between Ontario Place and Exhibition Place (bridging over Lake Shore Boulevard); a possible extension of the Queens Quay LRT to Ontario Place; and a major event plaza in the centre of Exhibition Place. The Master Plan also accommodates the CNE, Royal Winter Fair and Molson Indy as ongoing activities at Exhibition Place, before and after the Olympic Games.

As the Olympic plan continues to evolve, the following issues must be addressed:

· Review the location and design of all facilities in the context of the Development Master Plan for Exhibition Place and the business objectives of the Board of Governors;

· Enhance Princes' Blvd. as the major east-west street;

· Develop a comprehensive circulation plan within the grounds for vehicles and pedestrians, which works during and after the Olympic Games;

· Consider improvements to and increased use of existing buildings (e.g. the Industry Building) wherever possible, as an alternative to building new space;

· Protect and/or reuse all heritage buildings on the site wherever feasible; and

· Develop a construction/implementation plan to allow for continued events at Exhibition Place including the Royal Winter Fair, the CNE, the Molson Indy and trade/consumer shows in the National Trade Centre, before and after the Olympic Games.

Olympic Rings Central

In this area, the Bid will use the Air Canada Centre, Metro Toronto Convention Centre and SkyDome to house baseball, basketball, fencing, boxing, tae kwon do and volleyball. Union Station will be a major transportation hub. These proposals support City policy by:

· Using existing facilities and potentially acting as a catalyst to other improvements and investment in the Central Waterfront;

· Proposing a public plaza in Roundhouse Park, supporting the policy that it's a regional facility; and

· Suggesting a new pedestrian link directly from Roundhouse Park to the waterfront.

As plans are further developed for the Central Rings, the following issued must be addressed:

· Develop a pedestrian and vehicle circulation plan for the area, including identification of areas required for bus or vehicle marshalling;

· Define connections from Olympic facilities to the waterfront and the downtown, including links along all major streets between Yonge and Spadina, and with recommended improvements to these streets;

· Develop design guidelines and programming for the Roundhouse and Roundhouse Park, which incorporates the Olympic Games into long-term plans for the area; and

· Incorporate Olympic requirements into the City's overall objectives to improve Union Station as the major multi-modal transportation hub for the downtown.

Olympic Rings East

In trying to develop a technically perfect bid, one of the strongest components of Toronto's Olympic Master Plan has been the location of the Olympic Stadium, Athletes' Village and Media Village within walking distance of each other.

In the Olympic Rings East - the East Bayfront, West Don Lands and the Portlands - the Master Plan locates the Athletes' Village, the Media Village, the Stadium, a major plaza and venues for aquatics, softball, field hockey and an indoor rifle range. In addition, to the east of the Don Roadway, the plan shows a Broadcast Centre and Information and Technology Centre. The Ship Channel includes a rowing and canoeing course.

Planning policies for the Portlands are being developed, but will aim to attract a broader range of uses and long term investment to this area. In addition to emerging planning policies, the eastern waterfront is affected by the potential for flooding related to the mouth of the Don River. A City consultant is developing plans to resolve flooding issues on a regional basis. As plans are refined for this area, City staff will work with the TO-Bid to address the following issues.

For the East Bayfront (the area between Yonge and the foot of Parliament):

· Develop a plan for open space and parks along the water's edge; and

· Retain and reuse the existing Marine Terminal Buildings.

For the West Don Lands (the area of the proposed Media Village):

· Develop a soil and groundwater remediation plan; and

· Identify design criteria and a phasing plan for converting the Media Village to a neighbourhood, including space for adequate parks and community services and facilities.

The Athletes' Village as currently planned is located south of the Ship Channel, with associated uses on Marine Terminal 51 and 52 (where the Toronto Port Authority operates a container port). Although not permitted in this area today, housing is being reviewed as part of a comprehensive plan for the area. The Olympic Stadium is also proposed for the Portlands. This would require amendments to existing policies, and will need to fit into long-term plans for the area. For the Athletes' Village, City staff will work with TO-Bid to:

· Develop a soil and groundwater remediation plan;

· Prepare a municipal services plan, as these services do not exist south of the Ship Channel;

· Develop a long-term plan for Cherry Beach and the North Shore Park, showing its relationship to new housing;

· Resolve the relationship between the container port and new housing;

· Identify if existing rail spur lines need to be relocated or protected, and incorporate this into the Village design;

· Determine the relationship of housing to existing industrial uses south of the Ship Channel, and develop a plan to buffer the uses; and

· Develop design criteria and a phasing plan to allow for convertibility to a neighbourhood after the Olympic Games.

For the remainder of the Portlands, City staff will work further with the Bid to:

· Develop a plan to accommodate or relocate existing industries and businesses now located where Olympic venues are proposed; these are located on a mixture of privately owned lands and lands leased from TEDCO;

· Develop a soil and groundwater remediation plan;

· Integrate the green infrastructure plan for the Portlands into Olympic plans;

· Develop a strategy to integrate industrial and natural heritage into the development of any Olympic facilities;

· Determine which facilities will remain in the Portlands as a legacy after the Olympic Games;

· Clarify the location and space requirements of the Broadcast Centre and Information Technology Centre;

· Ensure that Olympic proposals protect or enhance proposed transit service to the area; and

· Ensure that Olympic proposals allow for ship access to the Portland's in the long-term.

3. Conclusion

The possibility of hosting the 2008 Olympic Games provides an exciting opportunity for the City to fast-track the revitalization of the waterfront, and leave a legacy of new sports facilities, parks, housing and public infrastructure. To ensure a lasting legacy for the City, the Olympic Games must fit into the City's overall vision for the waterfront and the City at large. The Olympic Master Plan proposals can achieve this.

As was the case in Barcelona, the Olympic Games can be a catalyst for revitalizing the waterfront; setting a new standard of excellence in design and architecture for facilities and public places; attracting investment; and raising the profile of the City on the international stage.

G. Environment

1. Introduction

The Olympic Master Plan recognizes that environmental issues must be a priority in the Bid strategy. To assist with the Master Plan, the City has made progress in developing a vision and strategy for a cleaner, greener and healthier future. In 1998, Council created an Environmental Task Force to prepare a comprehensive Environmental Plan for the City. Scheduled for completion in April 2000, it will recommend goals, targets, policies, strategies, structures and processes to lead the City to environmental sustainability. The recommendations of the Environmental Plan will also influence the environmental elements of the City's Official Plan and Strategic Plan.

2. Opportunities and Impacts

Servicing Issues

Sanitary Drainage: Sanitary servicing for the major Olympic site in the Portlands will use available infrastructure, as much as possible. It's anticipated that the City's trunk sewer infrastructure pump station and sewage treatment plant will have enough capacity to accommodate the expected flows from the Olympic venues and permanent housing associated with the Olympic sites.

Indications are that the 1.8m diameter low-level interceptor on Eastern Avenue has enough dry weather capacity to service Olympic Rings East, including the proposed housing in the West Donlands. Flows from these sites will be pumped via a new forcemain and pump station to the low-level interceptor. On-site storage capacity for sanitary flows may be needed for Olympic site servicing, to ensure that peak flows generated do not adversely impact the existing infrastructure. This is especially true of the Olympic Stadium, which will have capacity for 100,000 participants and spectators during the Olympic Games, and a permanent 20,000 seat stadium following the Olympic Games.

Similarly, the redevelopment of the Olympic Rings West Site, at the Exhibition and Ontario Place locations, can be serviced into the 3m diameter high-level interceptor along King Street.

The area south of the Ship Channel in the Portlands is currently unserviced due to a lack of a continuous right of way and the type of limited existing land use. Acquiring land to extend the Unwin Street right of way to Leslie Street are included in the "Unlocking of the Portlands" recommendations. This would enable the extension of services south of the Ship Channel.

Potable Water Supply: Regarding the potable water supply to the Olympic Ring locations, it's proposed to service these sites from the City's trunk watermain systems. An existing 42" trunk watermain along Queen Street, plus a 48" diameter discharge trunk from the John Street pump station, will provide sufficient water supply for the Portlands redevelopment. A detailed analysis of the appropriate connection points to the City's trunk facilities, along with size and locations for the various water connections, will be required as part of a design servicing study.

The Master Plan proposes to use state of the art water conservation and water efficiency measures at each Olympic venue to minimize the water demand on the existing infrastructure. Discussions will take place during the detailed phase of the Olympic Servicing Submissions to ensure that the landscaping features as well as any site irrigation systems are consistent with the City's water efficiency objectives. The opportunity to use adjacent lake water for site irrigation purposes will also assist with water efficiency measures in each of the shoreline Olympic venues.

It is also worth noting that the City of Toronto, along with some of the former cities, have provided Water Conservation Programs to inform the public and industries about the benefits of conserving potable water. A new Water Efficiency Plan for the amalgamated City, to be released later this year, will recommend the continuation of these and other programs to maximize the use of the existing water production and water supply systems. That should help ensure available water production capacity for the Olympic venues and the planned permanent housing for the Portlands area following the Olympic Games. With regard to water production quality, the City currently exceeds the Ontario Drinking Water Guidelines.

Storm Water Servicing: One theme throughout the Olympic bid proposal relates to enhanced water quality for the Portlands, and throughout the central waterfront, west to Ontario Place. The Olympic Games provide a unique opportunity to further the City's water quality improvement objectives through these core lakefront areas. The City has started major water quality improvements for the Western Beaches (i.e. the Western Beaches Tunnel). This will improve the quality of near shore waters along the Western Beaches, from Ontario Place to the Humber River. Prior water quality improvement initiatives, including the construction of two large storage tanks, have enhanced the near shore water quality for swimming and recreation east of the Portlands along the Eastern Beaches.

Further, the Wet Weather Flow Management Master Plan proposes water quality improvements for the remaining sections of the City's shoreline, as well as the City's six watersheds including the major watersheds of the Don and Humber rivers. In addition, the Waterfront Revitalization Task Force is investigating options for improving water quality along the lakefront, emphasizing the core City areas and lower Don system contiguous to lakefront redevelopment opportunities. All of the recommendations of the Wet Weather Master Plan and Waterfront Revitalization Task Force are expected to be completed after the Olympic Games, but key initiatives could be in place by 2008.

In the Wet Weather Flow Management Master Plan studies for the watersheds, one guiding principle states that:

"Rainwater is to be treated as a resource to be utilized to enhance and nourish the City's environment. Wet Weather Flow quantity and quality issues are to be managed on a watershed basis to enhance and preserve ecosystem health through a hierarchy of source, conveyancing end of pipe control and/or treatment measures. Source control measures will be considered first in this hierarchy in a manner that is balanced with the other two measures in terms of environmental, social and economic impacts"

City staff have met with the Waterfront Revitalization Task Force and have provided copies of previous waterfront studies and recommendations for review. In addition, the Task Force will be invited to participate, on a regular basis, with the Wet Weather Flow Management Master Plan Steering Committee. This will ensure that the methodology and recommendations for water quality enhancements are compatible, complimentary and consistent with the City's Wet Weather Flow Management Master Plan objectives and process.

The City has a major water quality improvement initiative underway to improve the quality of near shore waters along the section of Western Beaches shoreline from Ontario Place to the Humber River. In prior years, water quality improvement initiatives - including the construction of two large storage tanks - have greatly enhanced the near shore water quality for swimming and recreation in the area east of the Portlands, along the Eastern Beaches. The City has designed and constructed these combined sewer overflow facilities to meet the Provincial standards for swimming, beaches or body contact water.

Due to the intensive use of near shore water for hosting Olympic events, a similar water quality standard will be required. This will be part of the Olympic bid and Waterfront Revitalization Task Force initiatives, wherever these sporting events take place. Note that sporting events are planned for the shipping channel and various sections of the waterfront. Site specific evaluations should be carried out in conjunction with the Wet Weather Flow Management Master Plan to determine how to meet the necessary waterfront water quality standards.

Note also that the Olympic Rings East Master Plan in the Donlands includes surface stormwater management features, intended to improve the quality of storm runoff from the site before entering the near shore water surrounding the Olympic site. This would include capture of runoff from parking and/or roof areas, which may generate surface runoff pollutants. There will be limited opportunities at this site for infiltration systems; consequently, surface water quality features will be required as part of the Olympic Servicing Proposals.

A detailed assessment of the capacities of the local and trunk sanitary systems, along with treatment and pump station capacities, will be undertaken with TO-Bid team to refine the servicing details, and ensure the most effective servicing for the Olympic sites.

Co-ordination with Utility Companies: Olympic Bid staff will coordinate the other site servicing requirements for each of the Olympic venues - e.g. telecommunications, high speed data and video connections, gas, bell and hydro services - through the Toronto Public Utilities Coordinating Committee. A special meeting will be required with the utilities involved in servicing the Olympic venues, to plan for the necessary utility feeds to each site location.

Don River Alignment and Surface Runoff Control

The Bid proposal includes, in the project "wish list", a realignment of the Don River Channel at the mouth of the river where it enters Lake Ontario. This will improve the river hydraulics in this area, and provide for flood protection to the West Donland area Olympic Media Village.

Soil Remediation

Much of the proposed location for Olympic Ring East is on former industrial lands, which includes significant soil and groundwater contamination. Prior to redevelopment, these lands must be remediated according to the Provincial "Guidelines for Use at Contaminated Sites in Ontario". This major cleanup effort will be a beneficial legacy of the Olympic Games.

Solid Waste Management
Environmentally progressive programs built on reduce/re-use/recycle will be implemented to manage the solid waste generated from the Olympic Games. As many of the buildings to be constructed for the Olympic Games will exist post-Olympic Games, maximum diversion programs will continue after the Olympic Games.

Recycling and composting the solid waste generated during the Olympic Games (after re-use and recycling) will be maximized prior to disposal. Large multi-compartment bins could be set up at all venues to collect recyclables (e.g. beverage containers and paper), while organics collection bins could be set up in food preparation and eating areas to divert food waste. The collected food waste would be composted at an existing organics composting facility. All unserved food from the Olympic cafeterias and restaurants should be kept separate and donated to homeless shelters.

The collected recyclables could be sorted at an existing Materials Recovery Facility or a temporary sorting line on-site. Purchasing policies will affect the type of waste generated and minimize disposal. For example, beverages and food could be sold in paper cups and plates instead of plastic, and therefore could be composted with the food waste.

Policies should be established to ensure that the construction and demolition waste generated by the private sector during construction of the new buildings is re-used and recycled to the greatest extent. Consider using recycled material during construction where possible (e.g. carpet made from recycled PET bottles, tracks made from recycled tires).

All new buildings can be designed to maximize diversion and provide convenient diversion programs for residents. For example, in the Villages on-site composting bins could be located in an open space, the finished compost could be used in community gardens. On-site composting such as a large vermi-composting unit, could also be set up in facilities such as the Olympic Stadium.

Consideration must be given to who will provide waste management services during the Olympic Games, however the emphasis is on reliable collection and processing of recyclables and organics.

3. Requirements

Co-ordination with other Waterfront Plans/Initiatives

The Olympic Master Plan identifies the need for Toronto's bid to integrate with the City's proposed Waterfront Plan and the Part II Plan, "Unlocking the Portlands". In addition to the new Olympic facilities, related infrastructure improvement projects and the project "wish list" proposed in the Master Plan are needed to support and enhance the Olympic Games. Each of the future waterfront plans, plus the WWFMP, contains new waterfront projects/initiatives, all of which may be subject to planning, development and environmental approvals.

The approved 1999 and/or proposed 2000 Capital Works Programs include projects that could be viewed as complementary to the waterfront vision and Olympic Bid. Many of these projects will occur simultaneously and directly impact one another.

Harmonized Project Review Process: To coordinate the implementation of all waterfront initiatives and take advantage of synergies and partnerships, the Master Plan should identify the need for a comprehensive "Harmonized Project Review Process". This will help prioritize projects, establish timing, assess costs, recommend actions, and obtain the planning, development and environmental approvals for projects. A harmonized process will also ensure effective public consultation associated with these projects.

The Harmonized Project Review Process would include an assessment of the types of infrastructure improvements that are required for the Olympic Games. Certain improvements may have to be completed before starting other essential improvements. In addition, the construction of venues such as stadium and pools will also be required to meet the various deadlines associated with staging the Olympic Games. This can be difficult if underground servicing, road and bridge improvements, etc. are taking place in the same general area as stadium works. Another potential complication is the use of different contractors for the municipal and private works.

Successful coordination of these activities with TO-Bid will ensure that the physical objectives of the Olympic Master Plan are achieved within the required timelines.

Servicing Coordination: An overall servicing/construction scheduling plan will be required as part of the Harmonized Project Review Process, to coordinate the timing of all proposed infrastructure projects - anything associated with the Olympic Bid, Waterfront Revitialization Task Force, Unlocking the Portlands, and the WWMP. This scheduling plan would probably address a 20-year construction period, ensuring that appropriate facilities are provided in time to support the Olympic Games.

Environmental Approvals

The Olympic Master Plan suggests that environmental approvals must be obtained before the host city is selection in 2001, and that obtaining key approvals at this early stage is a significant challenge requiring the cooperation and participation of several approval agencies.

To evaluate the environmental impact of its proposed activities, the Olympic Games will be subject to both provincial and federal environmental approval legislation, i.e. the Ontario Environmental Assessment (EA) Act and the Canadian Environmental Assessment Act (CEAA). Working with both levels of governments to develop a harmonized environmental assessment process will be fundamental to meeting the 2001 timeline.

Individual projects/initiatives associated with other waterfront plans (e.g. Mayor's Waterfront Revitialization Task Force, Portlands Development, WWFMP) will also be subject to the same federal/provincial environmental approval legislation.

It makes sense to develop an integrated EA component in the process that addresses the EA requirements of Olympic activities that overlap and impact on other waterfront plans. This should also be integrated with the Harmonized Project Review Process and other public consultation and planning processes. The result will save both time and money.

Federal and Provincial agencies are developing a Harmonized Environmental Assessment Process that meets their requirements. This process is consistent with current City practice. In order to provide appropriate coordination, this process should apply to all related projects (i.e. Olympic facilities, Olympic project "wish list", Waterfront Revitialization Task Force projects, and Unlocking the Portlands project). It is recommended that City Council endorse this procedure once it's finalized.

4. Conclusion

The chance to host the 2008 Olympic Games can also be an opportunity to restore and regenerate the waterfront and the region's natural and human environment. With the proper planning and commitment, the Olympic Games can create a legacy of sustainability - of environmental, social and economic benefits that are integrated and mutually reinforcing.

Sydney's plan for the 2000 Olympic Games set a new standard for considering environmental concerns. In fact, Sydney's environmental commitments - from cleaning contaminated areas, to habitat protection and restoration, and from sustainable design and building, to energy and water conservation - helped seal their victory. Toronto's 2008 bid can and should aim even higher. This means ensuring that no harm is done by the Olympic Games, of course. More than that, it means using the Olympic Games as a catalyst for improving our environmental and community health and infrastructure, and creating a legacy of environmental protection and awareness.

H. Culture

1. Opportunities and Impacts

According to the Olympic Charter, host cities must not only organize the Olympic Games but also develop a cultural program that includes the opening and closing ceremonies, medal ceremonies, the flame relay and a Youth Camp. Successful bids for recent Olympic Games, such as Barcelona's and Sydney's, featured compelling visions of a multi-year cultural festival program. In fact, the cultural program in Sydney's bid was probably a deciding factor in their success.

A strong cultural plan for Toronto's 2008 Olympic Games bid may provide a similar edge. Already, the Master Plan states that "Enhancing the cultural capacity of our communities strengthens a major component of the Olympic ideal in Ontario."

One part of the cultural plan calls for a major retrofitting of Toronto's aging cultural facilities and heritage attractions, and proposes a modest number of required new facilities such as a downtown outdoor amphitheatre. The Plan also calls for a World Translation Centre and an Artists/Athletes Spiritual Training Centre.

Physical legacies go hand in hand with the possibility of increased cultural tourism. Barcelona's sharp increase in tourism - from 1.7 million in 1991, the year before their Olympic Games, to 3.1 million in 1995 - is due to a combination of factors. One key to that success is considered the city's effective marketing of its aesthetic transformation through the lead up to the Olympic Games. Tourism Toronto currently estimates that cultural tourism brings in approximately $1 billion annually to the city. A post-Olympic Games decade, if properly marketed, should see this figure multiply 6-7 times.

Other economic benefits will result from significant new corporate partnerships through branding and sponsorship opportunities. Corporations anxious to be attached to the Olympic Games, but unable to secure a tie with sports events, will find sponsorship of Cultural Olympic Games events a very appealing alternative. Many who start as new sponsors will become ongoing financial supporters of the local arts community. Following the Barcelona model, Toronto could attract significant private sector dollars, on a matching basis, in the years leading up to the Olympic Games for public art and other aesthetic civic improvements.

2. Results/Considerations

The cultural plan reflects months of consultation with a diverse cross section of the arts and culture community (close to 500 individuals), as well as creative work from key representatives of cultural industries, broadcast and entertainment media, theatrical producers and artists. This broad-based consultation and workplan has generated widespread positive response from the arts and culture community to the potential of the Cultural Olympic Games.

The program includes a four-year sequence of festivals, culminating in 2008. (Plans are also being explored to host a pre-Olympic festival of the arts in the summer of 2001.) Building on the notion of Toronto as the Meeting Place, on its First Nations heritage, and on the richness of its culturally diverse residents, the four festivals will explore a series of interlocking themes.

· 2005: Discover the Voices of the Ancestors - Festival of the Land: This first festival will celebrate the land and traditions of Canada's ancestors. A Spiritual Centre for athletes and artists on one of the Toronto islands will focus on native art and spiritual life. A further part of this exploration will focus on the heritage of early settlers, Toronto's history as a place of welcome to many cultures, and its evolution - from French trading post to British capital city, to home for the victims of the Irish potato famine and Highland clearances, to the richness of its post World War II cultural diversity.

· 2006: Discover the Voices of the Global Village - Festival of the Rings: Each of the Olympic Rings represents a continent whose citizens and descendants have come to Toronto. This festival will explore Toronto's evolution as a multicultural society - the historic global movements of exploration, immigration and settlement. The 2008 Artists Exchange program will be launched during this festival, which will focus on exchange and partnerships with other nations. International relationships of our own artists and arts organizations will be used as a springboard for collaborations with artists from the five continents.

· 2007: Discover the Voices of the Young and New - Festival of Fusion: This festival will build on the previous year's theme of the Global Village and on our reputation for cutting edge communications, from McLuhan to Newbridge and Nortel. New and imaginative art forms, use of technology in creation and culture, and the active participation of the world's youth will be promoted throughout this year. Mentorships will be established between youth and prominent athletes, artists and pioneers of fusion culture around the world. The results will form the backdrop for interactive visual displays throughout the city - a collage of voices, faces and art forms.

· 2008: Share the Voices with the World - Olympic Arts Festival: Toronto's 2008 Olympic Arts Festival will bring the world together. Leading performance artists, writers, visual artists and artistic collectives from all continents will be invited to work with Canadian colleagues. The result will be national and international commissions and collaborations, inspired by Olympic themes, that merge disciplines and cultures. The Olympic Arts Festival will resonate in performance venues, parks, galleries, and public spaces throughout the city, and use technology to engage artists and audiences throughout the world.

3. Requirements

Funding for the Cultural Olympic Games will come through existing government funders, from private sector sponsorships, foundations, and Internet-related revenues. A detailed plan for the 2005-2006 festivals should be completed by November 2001, so that fundraising, programming and contracting can begin in January 2002.

As planning proceeds, it will be important to ensure that the inclusive consultation process continues, and that the arts community is involved in designing the Cultural Olympic Games. Any concerns from artists regarding possible studio displacement need to be monitored. Sydney's cultural program and the success of its four-year festival series should also be reviewed, especially re. potential impacts on financing for the Olympic Games year.

4. Conclusion

The potential economic, employment and infrastructure legacies emanating from a Cultural Olympic Games in Toronto could be significant. However, it's the intangible benefits that, over and over during community consultations, have been sited as the most enduring legacies - an enhanced climate of innovation, of creative daring and artistic stimulation, of international and cross-cultural connections, and an animated civic pride.

I. Legal Agreements

1. Introduction

As the owner of all rights, title and interest in the Olympic Games, the International Olympic Commission (IOC) has developed a detailed Host City Agreement, which cities that are awarded the Olympic Games must execute.

Among other things, the Host City Agreement requires the City and the National Olympic Committee (NOC) - in this case, it would be the Canadian Olympic Association (COA) - to be jointly and severally charged with the organization of the Olympic Games, and to assume all financial and other risk and liability in connection with staging the Olympic Games.

As the Host City Agreement proposed for 2008 is not yet available, the agreement for the 2004 Olympic Games has been used as the basis of comment. The 2008 agreement should be substantially the same.

2. Considerations

IOC 2000 Commission

The IOC 2000 Commission was created on March 18, 1999 by the 108^th IOC Session. The Commission was given the mandate of proposing recommendations concerning modifications to the IOC's structure, rules and procedures. This was mainly to address concerns arising out of the award of the 2002 Olympic Games to Salt Lake City. The IOC 2000 Committee presented its recommendations to the 110^th IOC Session on December 12^th, 1999.

Among the key recommendations adopted by the IOC was the addition of a bid acceptance procedure. It will review the organizational capacity of the interested cities, in order to accept them as candidates. The procedure will also cover the signing of a contract between the IOC, the Bid City and its NOC, outlining the obligations of each party, the applicable code of conduct, and the sanctions for breach of the terms.

The IOC 2000 Commission also recommended that a new Host City contract be studied. In particular, the "contracting parties" requires review, as there is now a gap between the signing parties and the actual entities responsible for staging the Olympic Games. Any changes to the Host City Agreement are still to be decided.

Other recommendations concerned the Paralympics. One was that the IOC formalize its relationship with the International Paralympic Committee (IPC) through a contract or Memorandum of Understanding. Another called for the obligations of the Host City, relating to the Paralympic Games, to be included in the Host City contract.

Finally, several recommendations would improve transparency, especially the financial disclosure of all sources and uses of funds related to both the Bid process and the staging of the Olympic Games itself.

Bid City Agreement

The Bid City Agreement dated April 17, 1998 and executed at that time by the City and the COA has now been executed by TO-Bid, the Bid corporation. The Bid Agreement sets out a requirement for Federal and Provincial government financial and other assistance satisfactory to the COA and the City. This must occur before the City and the COA can execute an irrevocable undertaking to sign the IOC Host City Agreement, committing to the 2008 Olympic Games.

The Bid Agreement also contains provisions transferring responsibility and liability for commitments undertaken by the City or COA in the Bid process to the Bid corporation and similarly, following the awarding of the Olympic Games, to the Organizing Committee for the Olympic Games (OCOG).

Host City Agreement and Undertaking

The Host City Agreement, the Olympic Charter, and the Guidelines under the Charter set out the IOC requirements for all aspects of the Olympic Games.

The Olympic Charter codifies the fundamental principles upon which the Olympic Games are founded, the organizational rules applicable to the IOC and to the NOCs, and the administrative rules respecting the staging of the Olympic Games. These form the basis of the Host City Agreement, which would require the City and the COA to establish an OCOG within eight months of winning the Olympic Games.

OCOG has the primary role in organizing the Olympic Games. The liability, however, remains at all times with the City and the National Olympic Committee (COA). As soon as the Olympic Games are awarded, the Bid corporation (TO-Bid) ceases to have a role. An interim management team, under the direction of the City and the COA, replaces TO-Bid until the OCOG is formed.

The Host City Agreement, which the OCOG must sign, contains principles and requirements for organizing and staging the Olympic Games. Some of the matters that must be organized and developed:

· The Olympic Village;

· The Media Village

· Accommodation for the Olympic family and Olympic spectators

· Provisions respecting general accommodation price control (for spectator accommodation);

· Organization of the Sports and Cultural Programs;

· Provisions for media coverage;

· Provisions for security;

· Provisions for importing supplies and equipment;

· Access for athletes and required travel documentation;

· Specific requirements for rooms and supplies in the Olympic Village and Media Village;

· Provisions for medical services and the requirements of the IOC Medical Commission; and

· Provisions for transportation.

The Host City Agreement also requires the OCOG to arrange and pay for all costs associated with staging the IOC session to take place before the Olympic Games. The Host City must also commit to staging the Paralympic Games following the Olympic Games, although detailed requirements aren't part of the Host City Agreement. The agreement also provides for sharing television, marketing and ticket sales revenues with the OCOG, to offset some of the cost of operating the Olympic Games. However, the IOC doesn't guarantee these revenues.

Given the critical role of the OCOG, in the Host City Agreement the IOC reserves the right to approve all documentation concerning its establishment, and requires that the OCOG directors include Canada's IOC members, COA members and members representing the City. Federal and Provincial representation will also likely be required, as the Bid City Agreement entered into by the City requires Federal and Provincial assistance, satisfactory to the City and COA, for the Olympic Games to proceed.

In addition to executing the Host City Agreement, at the time the Bid is submitted the City and the COA must submit a signed, irrevocable undertaking. This states that the City, if selected as host, will sign the Host City Agreement without amendment, and will not enter into any obligations or commitments that would affect its obligations under the agreement. The final form of that undertaking is not yet available; however, it is anticipated that the Undertaking will contain similar provisions to those required in the past. Previous bidding cities have been required to sign an undertaking acknowledging that they are familiar with the Host City Agreement and will sign it without amendment; ensuring no competing events accepting IOC rules regarding use of the five rings symbol, and acknowledging that the Undertaking is irrevocable and cannot be terminated.

Contract Disputes: The IOC Host City contract is governed by Swiss law. In contrast to Canadian contract law, whose roots are in common law, Switzerland is a "civil law" jurisdiction. Like our law, Swiss contract law presumes that parties are free to make any agreement they wish, as long as it isn't void for illegality and the parties are acting freely. The main difference is in how courts view written contracts. In our system, evidence outside of the written contract is generally rejected, and the Court relies on the document itself to determine the intent of the parties when there is a dispute. Under Swiss law, a Court is more likely to receive extrinsic evidence as to the intent of the parties; such evidence can prevail over the text of the contract.

The Host City Agreement also provides that the Court of Arbitration for Sport (CAS) will decide on any disputes concerning the validity, interpretation or performance of obligations under the agreement, in accordance with the Code of Sports - Related Arbitration of the CAS. This will take place in Switzerland. The IOC appoints members to the CAS. However, IOC appointees should not sit on panels where the dispute involves the IOC itself.

OMB Approval: The capital and operating budgets for staging the Olympic Games far exceed the City's debt level as established under Ontario Regulation 799/94 as amended by Ontario Regulation 75/97. Therefore, the City will have to obtain Ontario Municipal Board (OMB) approval to enter into and execute the required undertaking and Host City Agreement. The City will be required to produce satisfactory evidence to the OMB of financial guarantees from the Provincial government, and other parties as applicable, that will allow the City to accept this risk.

Government and Other Guarantees

The Bid City Agreement states that if the Olympic Games are awarded to the City, the Federal and Provincial governments will provide financial and other assistance, satisfactory to the COA and the City in all respects. This includes, without limitation, the amount, type and timing of assistance. This is consistent with City Council's action at its meeting of July 8-10, 1998. At that time, Council stressed the need for satisfactory financial guarantees and support from other levels of government, as well as financial support from the private sector or otherwise, to protect the City from liability regarding its obligations under the Host City Agreement.

TO-Bid reports that the Province is actively reviewing the requirements to provide the guarantee protecting the City and the COA from any deficit in the capital and operating costs of the Olympic Games. A further report will be forthcoming once the actual guarantee is available for review.

The Athletes' Village and Media Village are support facilities that are intended to be developed under the housing strategy.

For the City to meet its obligations under the Host City Agreement and meet Council's directives for supporting the Olympic Games, the City must first reach several collateral agreements, primarily with the Provincial and Federal governments, which are detailed below. Agreements will also have to be reached with the developers and others to ensure the construction of the necessary support facilities at minimal risk to the City.

Paralympic Games

Organizing and staging the Paralympic Games will also become the responsibility of the OCOG. The Paralympics always follow the Olympic Games and take place in the same city, using a substantial number of the same facilities and venues. The City and OCOG will likely be required to enter into separate agreements with respect to staging the Paralympics; these will be reported on at a later date. Among the matters that will need to be addressed will be protecting the City from incurring liability as a result of hosting the Paralympics.

3. Covenants Required

Provincial Government Covenants

As previously set out, the City and the COA will have to execute the IOC Host City Agreement. While the Federal and Provincial agreements will not be parties, the City and COA can't fulfil their obligations under the Host City Agreement without the co-operation and assistance of the other levels of government.

In addition to providing the necessary financial guarantees, for the City and COA to meet their obligations under the Host City Agreement, the Province will have to provide, at its own expense, the following:

(i) Provide Ontario Provincial Police personnel and equipment, who will operate in co-operation with the Toronto Police Service, the Royal Canadian Mounted Police and the Canadian Security Intelligence Service, as well as regional and municipal police forces in areas where venues will be established;

(ii) Provide medical and health services, including ensuring available emergency health care including hospital care, for individuals designated by the IOC;

(iii) Facilitate the licensing of medical practitioners designated by the IOC for purposes limited to the Olympic Games;

(iv) Provide services within its jurisdiction related to official and other languages as are necessary for the planning and the staging of the Olympic Games;

(v) Provide services necessary for a lottery program or other marketing required for the Olympic Games in co-ordination with the Government of Canada;

(vi) Provide all necessary services within its jurisdiction relating to protocol for planning and staging the Olympic Games;

(vii) Ensure venues necessary for staging the Olympic Games that are within its jurisdiction, primarily Ontario Place and the Metro Toronto Convention Centre, are made available on reasonable terms;

(viii) Provide services relating to parks and conservation areas within its jurisdiction, as may be necessary for planning and staging the Olympic Games;

(ix) Ensure that the Ontario Arts Council, Trillium Foundation and other provincial agencies will work with the City and the Federal government to co-ordinate and stage the cultural program related to the Olympic Games.

Council, at its meeting of July 8-10, 1998, also required that a comprehensive housing strategy be developed as part of the next stage in the development of the Bid. While these details are set out elsewhere in this report, agreement from the Province is required to achieve the goals of affordable housing and tenant and rental housing protections.

Federal Government Covenants

In addition to providing any financial support, the Federal government must agree to provide certain services related to the planning and staging of the Olympic Games, at its expense, before the City can execute the undertaking and Host City Agreement. At a minimum, agreement must be reached on the following:

(i) The provision of appropriate security services, which will include Royal Canadian Mounted Police and the Canadian Security Intelligence Service, to work with the Toronto Police Service and Ontario Provincial Police;

(ii) Provide the necessary assurances required by the IOC that accredited athletes and the Olympic family are allowed entry to the country;

(iii) Ensure adequate transportation and related services within federal jurisdiction are provided including air traffic control and coast guard support;

(iv) Ensure all necessary services within its jurisdiction relating to equine quarantine and importation;

(v) Provide all necessary customs and related services within jurisdiction regarding the import and export of goods necessary for the planning and staging of the Olympic Games;

(vi) Provide services necessary within its jurisdiction for a coin and/or stamp program, and other marketing required for the Olympic Games in co-ordination with the IOC, the OCOG and the Province;

(vii) Ensure that the Canada Council, Department of Foreign Affairs and other Federal agencies will work with the City and the Province to co-ordinate and stage the cultural program related to the Olympic Games.

The potential for Federal contributions will be subject to certain principles and conditions set out in the Federal Policy for Hosting International Sport Events. These relate to the economic, social, cultural benefits that hosting the Olympic Games will bring to the City, as well as the benefits the Olympic Games will add to sports development in Canada. There may also be a role for the Federal government in implementing the proposed housing strategy.

Covenants Respecting Venues

TO-Bid and the City will have to enter into conditional agreements respecting venues proposed as training or staging facilities for the Olympic Games, where such sites are owned by public bodies other than the City or by private land owners.

The Host City Agreement requires the City to secure the venues for staging the Olympic Games, as proposed in the City's bid documents. Therefore, the City should have assurances from TO-Bid that it can deliver these venues before it enters into an agreement to provide them.

The venue agreements should be conditional on the City's bid being accepted and should ensure the intention of the owner to make the site available including the rental, lease or purchase costs. The agreements would also contain terms respecting marketing, non-competition and other matters as may be required by the IOC.

Other Matters Respecting Federal and Provincial Support

An agreement with the Provincial and Federal governments is required on issues related to:

· Infrastructure necessary for the Olympic Games to proceed;

· Land contributions for sites identified for Olympic purposes;

· Soil remediation;

· The planning and environmental assessment process to be followed; and

· Business relocation and expropriation costs.

Discussions are ongoing, and it is premature to report on legal issues. These issues will likely overlap other city initiatives underway relating to development of the waterfront generally, and in the Portlands.

In addition to requiring the Federal and Provincial governments to accept certain obligations regarding the planning and staging of the Olympic Games, the City will provide similar services within its jurisdiction. (The other levels of government may require these to be set out in an agreement.) These services include providing:

· Security and policing through the Toronto Police Service;

· Medical services through public health;

· Tourism and marketing services through Tourism Toronto;

· Transportation services through the TTC, GO and possibly relating to the Union Station master plan;

· Fire, ambulance, parks and garbage service to the Olympic sites;

· Venues including Exhibition Place and the National Trade Centre, as well as any parts or other lands owned or controlled by the City;

· Protocol services.

Finally, an agreement with the Provincial and Federal governments will be needed regarding the legacy that the Olympic Games will leave in the City. This includes issues such as ownership of the remaining sports facilities, their management and use, and funding for their maintenance.

J. Toronto Waterfront Revitalization Task Force

On November 3, 1999 the Toronto Waterfront Revitalization Task Force was announced by Mayor Lastman, Premier Harris and Prime Minister Chretien. The Task Force is the joint creation of the three levels of government, with a clear mandate to deliver a strategic business plan including recommendations for the re-development of the Toronto waterfront.

The responsibilities of the Task Force include:

· Reviewing existing waterfront plans;

· Preparing an inventory of waterfront assets held by the three levels of government;

· Developing a strategic master plan that will combine open space, recreational, residential, commercial and entertainment uses;

· Examining infrastructure enhancement, including transportation, services, parks and environmental remediation;

· Determining participation and partnership with the private sector through various partnership structures;

· Integrating 2008 Olympic bid requirements; and

· Recommending an organizational structure to oversee and co-ordinate the waterfront development.

The revitalization of the waterfront would definitely strengthen Toronto's Olympic bid.

As has been demonstrated by the success of both the Sydney and the Barcelona Olympic bids, pre-bid efforts to revitalize city waterfronts by creating legacy buildings, tackling major infrastructure challenges, remediating contaminated soil and improving water quality, dramatically increased their prospects of hosting the Olympic Games.

The Task Force has studied more than a dozen precedents around the world where cities embarked upon major revitalizations of their derelict waterfronts and downtown cores. Many of the lessons are applicable to Toronto. Tough decisions have to be made to make better use of under-utilized or misused lands and to ready the city to enter the Millennium as a major commercial and cultural centre that encourages global tourism and attracts new knowledge-based industries.

The revitalization of Toronto's waterfront will proceed with or without a successful Olympic bid. However, there is no doubt that the Olympic bid provides a strong catalyst for much-needed revitalization and that the revitalization will enhance and support all aspects of the Olympic site construction.

The proposed $2.8 billion in infrastructure development, as estimated by the Olympic Bid, will be accomplished through the implementation of the Task Force's revitalization plan.

All the Olympic bid requirements have been accommodated in the revitalization plan.

The vision of the Toronto Waterfront Revitalization Task Force will be made public by the end of February, 2000 and will illustrate the dramatic impact of reconnecting the city of Toronto with its waterfront.

The greening of the waterfront, improved public access to the city's water edge, the addition of boardwalks, pedestrian promenades and parks will set the stage and provide a breathtaking back drop for Toronto's Olympic venues.

Toronto will benefit from this spectacular opportunity to be show-cased internationally. The new face Toronto will show to the world is that of a dynamic, beautiful, accessible waterfront on an unprecedented scale. There will be roughly 46 kilometre encompassing 2,800 acres of reclaimed and revitalized land presenting itself as an emerald necklace to adorn the City of Toronto.

K. Paralympics

1. Introduction

The Olympic host city, in addition to staging the Olympic Games, also assumes the obligations of holding the Paralympics. This competition, which follows shortly after the end of the Olympic Games, features sports for top-level athletes with disabilities.

While the Paralympic Games primarily use the facilities as the Olympic Games, the Paralympics are a major competition in their own right. In Sydney in 2000, the Paralympics will include 4,000 athletes from 125 nations along with 2,000 team officials, 1,000 technical officials, 2,500 Paralympic Family members, 1,300 media, and 10,000 volunteers.

In fact, in 2000, the Paralympic Games will be the second largest sporting event in the world, and will be larger than the 1998 Olympic Winter Games in Nagano or the 1998 Commonwealth Games in Kuala Lumpur.

2. The Paralympic Movement

The history of the Paralympic Movement dates back to 1948, with the first Stoke Mandeville Olympic Games held in London for World War II veterans with spinal cord related injuries. While sport has value in anyone's life, it can be even more important in the life of a person with a disability - it is a form of rehabilitation, it is a means of integration into society, and it teaches independence. However, the Paralympics are a major high performance sport competition emphasizing the participants' athletic achievements over their disability.

The first Paralympic Games took place in Rome in 1960. Then, 400 athletes with spinal cord injuries competed. Other disability groups joined in the 1976 Paralympics which were held, in fact, in Toronto. Today, the Paralympic Games are multi-disability events (i.e. spinal cord injuries, visual impairments, cerebral palsy, amputees, intellectual disabilities and others).

The International Paralympic Committee (IPC) organizes, supervises and co-ordinates the Paralympic Games, as well as other multi-disability competitions. The non-profit IPC is run by 160 National Paralympic Committees and five disability-specific international sport federations. That organization's objectives include promoting the practice of sports for disabled people, and expanding the opportunities for disabled people to participate in sports and access training programs.

The Paralympic Games have always been held in the same year as the Olympic Games. Since the Seoul Olympic Games (1988) and the Albertville Winter Olympic Games (1992) they have also taken place at the same venues as the Olympic Games. The Movement's growth can be seen through the size of the Sydney 2000 Paralympics. More nations will compete there than at the 1972 Munich Olympic Games.

3. Considerations

While a Paralympics plan for Toronto has yet to be fully developed, the upcoming 2000 Paralympics indicates the scope of competition.

In Sydney, the event will run 11 days, and includes 18 sports at 20 venues: archery, athletics, basketball, boccia, cycling, equestrian, fencing, football, goalball, judo, powerlifting, rugby, sailing, shooting, swimming, table tennis, and volleyball. Fourteen of these sports will be held in Sydney Olympic Park. All the Paralympic athletes and technical officials will reside in the Olympic Village.

A preliminary conversion of Atlanta's budget for the Paralympics has been received from Ernst & Young. The converted amount included an $18 million ACOG contribuiton toward the Paralympic budget. A similar proposed contribution in Toronto's case would reduce the TO-Bid surplus to $69 million.

It is noted that the Atlanta and Sydney Paralympic budgets included contributions from both the state and national governments. TO-Bid will have to secure agreements with the Federal and Provincial governments to confirm a level of support. Other revenue sources include corporate sponsorships, ticket sales and entry fees.

4. Olympic Games Organizational Strategy

The Sydney 2000 Olympic/Paralympic Games will leave a very strong legacy of co-operation between the two major international sporting events which TO-Bid should incorporate into its planning and operations. The Sydney Olympic Games established an operational partnership between the Sydney Paralympic Organiziang Committee (SPOC) and the Sydney Organizing Committee for the Olympic Games (SOCOG). While preserving a unique SPOC identity, the 2000 Olympic Games emphasized a world class sporting event featuring combined planning, financial benefits and economies by avoiding duplication of effort and a seamlesss trasnsition between Olympic Games.

For example SOCOG delivered the following operational areas for the Paralympics: acoomodations, accreditation, medical, security, technolgy, uniforms, sport, venue management and Olympic Games overlay, villages, press operations and volunteers.

5. Benefits of Toronto Hosting 2008 Paralympic Games

By hosting the 2008 Paralympic Games, the City of Toronto could play a major role in advancing the Canadian and international Paralympic Movements. Of all the cites currently in the running to host the 2008 Olympic Games, Toronto has the most to offer in terms of leadership in the areas of: access, equity, integration/inclusion, athlete centredness and other major issues for athletes with diasbility.

While Canada has long been recognized for its leadership in advancing sport for athletes with a disabilty, the Paralympic Games of this magnitude, have never been hosted here. Consequently,

the Paralympic Movement has never been able to capitalize on the advantages that occur following the increased public awareness and interest that emerge following the hosting of such a high profile event. Plans will also include specific efforts to increase television and other media coverage and targetted public awareness campaigns such as teacher/school resource kits.

6. Conclusion

There is a considerable opportunity to attract favourable attention to Toronto's bid within the International Paralympic Movement by incorporating these measures into the Paralympics plan. The world-wide Paralympic Movement can substantially benefit (in monetary and awareness terms) leading to organizational growth and stability.

As with the Olympic Games, the Paralympic Games would be planned and staged in a fiscally and socially responsible manner. A Toronto Paralympics would add to the rich legacy of the Paralympic Movement. Beyond the Olympic Games themselves, hosting the Paralympics could encourage people with disabilities in Toronto to take part in sports and recreation, and lead to enhanced opportunities for individuals with a disablity in a wide range of social areas such as transportation, housing and employment.

L. Legacies of Staging the Olympic Games

The Olympic spirit will remain an integral part of Toronto, as a benefit to all of the people who live here and a tribute to the Olympic Movement. Just how will residents of Toronto enjoy an Olympic legacy far beyond the conclusion of the Olympic Games?

Housing

· The Olympic Athlete's and Media Villages will become vibrant new neighbourhoods including 4,000 mixed housing units.

Sports and Recreation

· Increased sport and cultural involvement across the country.

· New competition venues built for the Olympic Games will be sustained by an endowment fund.

· Hundreds of pools, gyms, tracks and fields will be upgraded to international standards, used for training purposes during the Olympic Games and will then be available for wide community use.

· Regional venues will be upgraded and used to host some of the preliminary team sport competitions.

· National acclimatization centres will be identified to host teams prior to the opening of the Olympic Games.

· The legacy of world class facilities will enable Toronto to compete successfully for the opportunity to host other major national and international sports events in the future.

· The endowment fund will used to help strengthen the sport system in Canada from grass roots participation beginning at the community level to training coaches and athletes at the national level.

Economy

· The after-effects and spin-offs of a massive economic jolt, up to $8 billion of activity in the province, and 165,000 person years of employment.

· A sustained increase in tourism that could bring in, conservatively, an additional quarter-billion dollars or more into the Toronto economy every year. (Barcelona showed a 65% increase in the number of tourists within three years of hosting the 1992 Olympic Games.)

· Increased business and investment from the massive, worldwide publicity for Toronto.

· Government revenues will greatly expand, with Olympic-related tax collection of revenues of $3.125 billion - $1.4 billion for Federal, $1.2 million for Provincial, and $275 million for Municipal (approximately $100 million of that for the City of Toronto).

Infrastructure

· A range of transportation enhancements, from an upgraded Union Station hub, to street extensions, to improved roads and bridges, to new pedestrian connections, to improved rail corridors.

· A revitalized waterfront, with an increase in public facilities, housing and open space, and improved access.

· Improved air, water and land environmental systems.

· A series of new parks and plazas, and enhanced greenspaces.

· Greater accessibility for people with disabilities, i.e. barrier-free subway cars, buses, transit stations, and buildings.

Culture

· An enhanced climate of creativity and artistic stimulation.

· A retrofit for Toronto's aging cultural facilities and heritage attractions.

· A generally improved cultural infrastructure.

· New corporate partnerships and sponsorships for the arts, due to the Olympic cultural program.

· An enhanced climate of creativity and artistic stimulation.

Other Community Benefits

· Volunteer development.

· Heightened recreational, environmental and cultural awareness.

· A more active and therefore a healthier population.

· A stronger community spirit and pride.

Conclusions:

Hosting the Olympic Games of 2008 will provide tremendous economic and social benefits to the City of Toronto, as well as to the surrounding region and, more broadly, to Canada. The Olympic Games also promise to spur City building, resulting in improved housing, transportation and other infrastructure, cultural and recreational facilities, and a revitalized waterfront.

As a result of the broad range of benefits that accompany the Olympic Games, hosting the Olympic Games has historically been a co-operative effort between the various levels of government in the host country, the private sector, and stakeholder groups. The expectation is that this will be the case for the Toronto 2008 Olympic Games.

Financial guarantees from the Province of Ontario and from PCL Constructors Canada will, respectively, cover any operating deficits and place a ceiling on the capital cost of the Olympic Games. The staff review of TO-Bid's Master Plan found that the proposed operating and capital budgets appear to be reasonable and valid.

The recommendations in this report are supported in the staff reviews. The heads of the departments whose staff groups conducted these reviews have been consulted, and include the Commissioners of Economic Development, Culture & Tourism, Works & Emergency Services, Urban Planning & Development Services, and Community & Neighbourhood Services; the Chief Financial Officer and Treasurer; the City Solicitor; and the General Managers of the Toronto Transit Commission and GO Transit. They agree that Corporate standards have been adhered to.

Based on the assurances covering costs, and an agreement that affordable housing will be one of the legacies of the Olympic Games, City Council is encouraged to approve the application to be submitted to the International Olympic Committee by the 2008 Toronto Olympic Bid Committee, the City of Toronto and the Canadian Olympic Association.

Contact:

Joe Halstead

Commissioner Economic Development, Culture and Tourism

Tel: 395-6177

Fax: 395-0388

Michael Garrett Joe Halstead

Chief Administrative Officer Commissioner Economic Development, Culture and Tourism

Wanda Liczyk Barry Gutteridge

Chief Financial Officer and Treasurer Commissioner Works and Emergency Services

Shirley Hoy H.W.O. Doyle

Commissioner Community and City Solicitor

Neighbourhood Services

James Ridge Rick Ducharme

Acting Commissioner Urban Development General Manager Toronto Transit

Services Commission

Attachment No. 1:

Why the Olympics? Why Toronto?

The Olympic Games are the world's premier sporting and cultural event. The Games provide a unique opportunity to unite the people of the world in a spirit of competition and celebration.

Ever since the first recorded Games were held at Olympia in ancient Greece, the Olympics have been about much more than just a great sports festival.

They are about the pursuit of excellence and personal growth. About strengthening the understanding and friendship among peoples. About integrity and fair play. About physical and moral development. And about educating youth through these examples. The Olympics may last just a few weeks, but the Olympism philosophy lingers.

Every four years the world is drawn to a flame, the Olympic Flame. In 2008, Toronto would be the most suitable stage on which the Games could unfold. In the eyes of the International Olympic Committee, what are the selling features of a Toronto Summer Games?

· We are Canada's largest city, its financial and commercial hub, and the foremost cultural, entertainment and communications centre.

· This is the most multicultural community on Earth, a microcosm of our global village. Our rich and diverse culture has been built, in peace and collaboration, by the countrypeople of all the athletes who'll compete in the Olympics, all the people who'll visit the Games, and the world audience who'll watch the events. The GTA is a reflection of a world that can share and live harmoniously, and the Olympic ideals would be reflected right back.

· As the home of professional hockey, baseball, basketball and football teams, and the host of many major competitions (World Basketball Championships, World Indoor Track and Field Championships, World Series, NHL All-Star Game, Major League Baseball All-Star Game, Grey Cup), Toronto has proven its ability to support and organize the largest of sporting events. This experience has sharpened the area's ability to host the world's greatest sporting spectacle, the Olympics.

· Toronto is also home to many leading cultural festivals, including Caribana and Caravan, which draw visitors by the tens of thousands from within and outside the country.

· The Bid for the 1996 Summer Games by the Toronto Ontario Olympic Council, which saw Toronto finish third in the voting, in a six-city competition, firmly established Toronto as an "Olympic City", with many keen supporters among the IOC community.

· Canada has demonstrated its outstanding ability to host an Olympic Games through the 1976 Summer Olympics in Montreal and the 1988 Winter Olympics in Calgary.

· We have a high quality urban environment and transportation infrastructure, linking all areas of the city.

· Toronto is a major world travel destination, attracting more than 20 million visitors a year. Pearson International Airport is a transportation hub, served by dozens of airlines.

· One-half of North America's population is within a 1-day drive of the GTA.

· We have ample accommodation, with close to 120,000 beds and 100,000 camp sites available within the area.

· Toronto is one of the most advanced telecommunication centres in North America, boasting the headquarters of several national television broadcasters.

· We have world class cultural and entertainment facilities, including theatres, concert halls and museums.

· Most IOC countries are represented here with consulates or official offices.

Other factors in Toronto's favour?

· A Toronto bid would likely be more comprehensive than, and technically superior to, any of the present candidates.

· Sydney, Australia is hosting the Games in 2000, followed by Athens, Greece in 2004. As such, the IOC may feel that it's time to return the Summer Olympics to North America in 2008. The U.S. Olympic Committee has decided not to compete for the 2008 Games, leaving Toronto as the sole North American contender.

· Returning the Games to the Eastern Time Zone and its large market holds strong appeal to both the IOC and its biggest television partner, NBC.

The opportunity to bid for the Olympic Games occurs, realistically, only once every 12-20 years. The privilege of hosting the Games occurs only once in an average lifetime. Given our distinctive characteristics and our international reputation as a thriving urban centre, Toronto is well positioned to be selected as host for the 2008 Summer Olympics.

Attachment No. 2:

Fundamental Principles of the Olympic Movement

1. Modern Olympism was conceived by Pierre de Coubertin, on whose initiative the International Athletic Congress of Paris was held in June 1894. The International Olympic Committee (IOC) constituted itself on 23rd June 1894. In August 1994, the XII Congress, Centennial Olympic Congress, which was entitled "Congress of Unity", was held in Paris .

2. Olympism is a philosophy of life, exalting and combining in a balanced whole the qualities of body, will and mind. Blending sport with culture and education, Olympism seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles.

3. The goal of Olympism is to place everywhere sport at the service of the harmonious development of man, with a view to encouraging the establishment of a peaceful society concerned with the preservation of human dignity. To this effect, the Olympic Movement engages, alone or in cooperation with other organizations and within the limits of its means, in actions to promote peace.

4. The Olympic Movement, led by the IOC, stems from modern Olympism.

5. Under the supreme Authority of the IOC, the Olympic Movement encompasses organizations, athletes and other persons who agree to be guided by the Olympic Charter. The criterion for belonging to the Olympic Movement is recognition by the IOC. The organization and management of sport must be controlled by the independent sport organizations recognized as such.

6. The goal of the Olympic Movement is to contribute to building a peaceful and better world by educating youth through sport practised without discrimination of any kind and in the Olympic spirit, which requires mutual understanding with a spirit of friendship, solidarity and fair play.

7. The activity of the Olympic movement, symbolized by five interlaced rings, is universal and permanent. It covers the five continents. It reaches its peak with the bringing together of athletes of the world at the great sports festival, the Olympic Games.

8. The practice of sport is a human right. Every individual must have the possibility of practising sport in accordance with his or her needs.

9. The Olympic Charter is the codification of the Fundamental Principles, Rules and By-laws adopted by the IOC. It governs the organization and operation of the Olympic Movement and stipulates the conditions for the celebration of the Olympic Games.

Attachment No. 3:

IOC Reforms

Starting in 1999, the IOC instituted a reform process that has seen the expulsion and sanction of some members, an increase in the organization's transparency, the creation of an independent Ethics Commission, and a review of the IOC's structure and policy.

On December 11-12, 1999, the IOC President convened a historic 110th Extraordinary Session in Lausanne. During it, IOC members voted on how to revitalize the IOC's structure, role, and host city election procedure by reviewing and adopting the recommendations developed by the reform commission. This Session marked the high point of the reform process. Changes ranged from adding 15 active athletes to the IOC membership, to publishing additional financial reports that illustrate the use of IOC revenues, to working with the World Anti-Doping Agency to more effectively carry out doping controls and monitor the athletes' health.

Among the most significant changes adopted by the IOC were rules concerning the selection of the Olympic Games host city. These reforms will create an improved host city election process that will clarify both the qualifications necessary to bid for the Games and the responsibilities and obligations of all parties involved in the process. The major changes include:

- Adding a bid acceptance procedure that would review the organizational capacity of the interested cities in order to accept them as candidates.

- Eliminating member visits to the candidate cities.

- Strengthening the Evaluation Commission that visits each of the candidate cities.

- Strengthening of the obligations of the National Olympic Committees (NOCs) to oversee and counsel the Bidding committees in their countries.

- Creating a contract between the IOC, the Bid cities, and their NOCs outlining the obligations of each party, the applicable code of conduct, and the sanctions for breach of the terms.

Currently, the IOC Charter calls for the following re. the selection of the host city:

1. The election of any host city is the prerogative of the IOC alone.

2. Only a city, the candidature of which is approved by the NOC of its country, can apply for the organization of the Olympic Games. The application to organize the Olympic Games must be made to the IOC by the official authority of the city concerned with the approval of the NOC. The official authority of the city and the NOC must guarantee that the Olympic Games will be organized to the satisfaction of and under the conditions required by the IOC. Should there be several candidate cities in one country for the organization of the same Olympic Games, it rests with the NOC to decide which one will be proposed for election.

3. The organization of the Olympic Games shall not be entrusted to a city unless the latter has submitted to the IOC a document drawn up by the Government of the country under consideration, in which the said Government guarantees to the IOC that the country will respect the Olympic Charter.

4. Any city applying for the organization of the Olympic Games must undertake in writing to respect the conditions prescribed for candidate cities issued by the IOC Executive Board, as well as the technical norms laid down by the IF of each sport included in the programme of the Olympic Games. The IOC Executive Board shall determine the procedure to be followed by the candidate cities.

5. Any candidate city shall offer such financial guarantees as considered satisfactory by the IOC Executive Board. Such guarantees may be given by the city itself, local, regional or national public collectivities, the State or other third parties. At least six months before the start of the IOC Session at which such Olympic Games will be awarded, the IOC shall make known the nature, form and exact contents of the guarantees required.

6. The election relating to the designation of the host city takes place in a country having no candidate city for the organization of such Olympic Games, after due consideration of the report by the evaluation commission for candidate cities. Save in exceptional circumstances, such election must take place seven years before the holding of the Olympic Games.

7. The IOC enters into a written agreement with the host city and the NOC of its country, which agreement specifies in detail the obligations incumbent upon them. Such agreement is signed immediately upon the election of the host city.

IOC Code of Ethics

The IOC membership voted to create the IOC Ethics Commission in March 1999. This body is charged with ensuring that the ethical standards for IOC members are clear, applied, and enforced.

The Commission is headed by Judge Keba Mbaye, former Vice-President of the International Court of Justice and an IOC member since 1973. He is joined by five independent members: Howard Baker (former majority leader of U.S. Senate and White House Chief of staff); Javier Perez de Cuellar (former United Nations Secretary General); Robert Badinter (former President of the French Constitution Court); Kurt Furgler (former Swiss President); and Charmaine Crooks (a five-time Olympian from Canada). IOC members on the Commission include Kevan Gosper and Chiharu Igaya.
The Commission's initial work resulted in the adoption of a Code of Ethics (see below). It will govern the actions of IOC members and that of officials of candidate cities for the Olympic Games and Organizing Committees of the Games (OCOGs) as they interact with IOC members. Specifically, the new Code limits gifts to items of nominal value and hospitality to the prevailing customs in the host country. )

The Commission's work also led to changes to the Olympic Charter in June 1999, enhancing and clarifying the powers of the IOC Executive Board to sanction and suspend members for unethical behaviour.

Code of Ethics Preamble

The International Olympic Committee and each of its members, the candidate cities for the Olympic Games, the Organizing Committees of the Olympic Games and the National Olympic Committees concerned (hereinafter "the Olympic parties") restate their commitment to the Olympic Charter and in particular its fundamental principles. The Olympic parties affirm their loyalty to the Olympic ideal inspired by Pierre de Coubertin.

Consequently, within the organization of the Olympic Games, the Olympic parties undertake to respect, and ensure respect of the following rules:

I. Dignity

1 Safeguarding the dignity of the individual is a fundamental requirement of Olympism.

2 There shall be no discrimination between participants on the basis of race, sex, ethnic origin, religion, philosophical or political opinion, marital status or other grounds.

3 No practice constituting any form of physical or mental injury to the participants will be tolerated. All doping practices at all levels are strictly prohibited. The provisions against doping in the Olympic Movement Anti-Doping Code shall be scrupulously observed.

4 All forms of harassment against participants, be it physical, mental, professional or sexual, are prohibited.

5 The Olympic parties shall guarantee the athletes conditions of safety, well-being and medical care favourable to their physical and mental equilibrium.

II. Integrity

1 The Olympic parties or their representatives shall not, directly or indirectly, solicit, accept or offer any concealed remuneration, commission, benefit or service of any nature connected with the organization of the Olympic Games.

2 Only gifts of nominal value, in accordance with prevailing local customs, may be given or accepted by the Olympic parties, as a mark of respect or friendship. Any other gift must be passed on to the organization of which the beneficiary is a member.

3 The hospitality shown to the members and staff of the Olympic parties, and the persons accompanying them, shall not exceed the standards prevailing in the host country.

4 The Olympic parties shall avoid any conflict of interest between the organization to which they belong and any other organization within the Olympic Movement. If a conflict of interest arises, or if there is a danger of this happening, the parties concerned must inform the IOC Executive Board, which will take appropriate measures.

5 The Olympic parties shall use due care and diligence in fulfilling their mission. They must not act in a manner likely to tarnish the reputation of the Olympic Movement.

6 The Olympic parties must not be involved with firms or persons whose activity is inconsistent with the principles set out in the Olympic Charter and the present Code.

7 The Olympic parties shall neither give nor accept instructions to vote or intervene in a given manner within the organs of the IOC.

III. Resources

1 The resources of the Olympic parties may be used only for Olympic purposes.

2 The income and expenditure of the Olympic parties shall be recorded in their accounts, which must be maintained in accordance with generally accepted accounting principles. These accounts will be checked by an independent auditor. They may be subjected to auditing by an expert designated by the IOC Executive Board.

3 The Olympic parties recognize the significant contribution that broadcasters, sponsors, partners and other supporters of sports events make to the development and prestige of the Olympic Games throughout the world. However, such support must be in a form consistent with the rules of sport and the principles defined in the Olympic Charter and the present Code. They must not interfere in the running of sports institutions. The organization and staging of sports competitions is the exclusive responsibility of the independent sports organizations recognized by the IOC.

IV. Candidatures

The Olympic parties shall in all points respect the IOC Manual for cities bidding to host the Olympic Games. Candidate cities shall, inter alia, refrain from approaching another party, or a third authority, with a view to obtaining any financial or political support inconsistent with the provisions of such Manual.

V. Relation with States

1 The Olympic parties shall work to maintain harmonious relations with state authorities, in accordance with the principle of universality and of political neutrality of the Olympic Games. However, the spirit of humanism, fraternity and respect for individuals which inspires the Olympic ideal requires the governments of countries that are to host the Olympic Games to undertake that their countries will scrupulously respect the fundamental principles of the Olympic Charter and the present Code.

2 The Olympic parties are free to play a role in the public life of the states to which they belong. They may not, however, engage in any activity or follow any ideology inconsistent with the principles and rules defined in the Olympic Charter or set out in the present Code.

3 The Olympic parties shall endeavour to protect the environment on the occasion of any events they organize. In the context of the Olympic Games, they undertake to uphold generally accepted standards for environmental protection.

VI. Confidentiality

The Olympic parties shall not disclose information entrusted to them in confidence. Disclosure of information must not be for personal gain or benefit, nor be undertaken maliciously to damage the reputation of any person or organization.

VII. Implementation

1 The Olympic parties shall see to it that the principles and rules of the Olympic Charter and the present Code are applied.

2 The Olympic parties shall notify the Ethics Commission of any breach of the present Code.

3 Each year, the Ethics Commission will submit to the IOC President and Executive Board a report on the application of the present Code, noting any breaches of its rules. The Commission will propose to the IOC Executive Board sanctions which might be taken against those responsible.

4 The Ethics Commission may set out the provisions for the implementation of the present Code in a set of by-laws.

Attachment No. 4:

Timeline for Selecting the 2008 Host City

September 1999 IOC sends invitations to NOCs

February 1, 2000 NOCs respond by letter with the name of a candidate city.

February 2000 Information meeting between the IOC and interested NOCs/cities. IOC provides details of the Bid process.

March-August 2000 IOC analysis.

September 2000 Acceptance of official candidate cities by the IOC Executive Board.

September 2000- Preparation of candidature files.

January 2001

January 2001 Receipt of candidature files.

January-February 2001 Analysis of candidature files. Preparation of documents for IOC Evaluation Commission.

February- April 2001 Visits by IOC Evaluation Commission.

May 2001 Evaluation Commission reports.

July 2001 Election of host city by

Attachment No. 5

Housing & Protection Strategies

A. Housing Production

Affordability can be achieved through a combination of the four "tools" described in the report. Land subsidies and existing City and provincial incentives should be used regardless of the mix of other tools. Zero land cost and existing incentives can lower the average 1999 rents to the vicinity of $1,000 or $1,100. Average 1999 true market rents for new rental housing (approximately 760 net square feet average, or a small two-bedroom) in these locations are estimated at $1,200 to $1,250 monthly. Provision of land at no cost may, depending on assumptions about return on investor capital and turnkey developer profit, reduce rents by $100 to $200 monthly. Existing City and provincial incentives may decrease rents by up to about $50 per unit monthly. This $1,000 or $1,100 level is referred to as "moderate market rent"; it is no more than 10 percent above average downtown rents for much older housing, and is well below normal market rents for a brand new unit. "Moderate market rents" in return for public incentives and land contributions would need to be ensured through agreements governing the rental portion of the Olympic Villages.

Beyond that, it is necessary to negotiate some combination of the other two tools: capital (equity) and rent supplement. The following table illustrates a range of options to combine one or more of these with the land and incentives.

Options for Production of Affordable Olympic Housing

In Option 1, there would be no direct capital contributions but zero land cost and existing City/provincial incentives would achieve market rents in the vicinity of $1,000 or $1,100 per unit per month. Resulting rent supplement costs in year 1 would be $600-$750 per unit monthly ($7,200-$9,000 annually).

The next two options could entirely eliminate the need for rent supplement. To achieve this in year 1 would require a capital subsidy sufficient to reduce average rents to about $625 per unit monthly in 1999 dollars (weighted average of 1,000 geared-to-income units at $350-$400 and 600 moderate-market-rent units at $1,000-$1,100). A hybrid approach could use capital to bring average rent down to (1999) mid-market levels of $800-$900 monthly, with rent supplement of $400-$550 monthly or $4,800-$6,600 annually.

In Option 2, the Waterfront agency would use its early land proceeds from sites across the waterfront to write down the capital cost of construction of the rental. It is likely that in this approach significant infrastructure and environmental costs would need to be covered by interest-free by loans or grants from senior governments; and such a strategy would delay the flow of land proceeds to the Waterfront agency and/or the governments concerned. Governments would ultimately realize the proceeds from land sales on the condominium portion of Olympic Village development, amounting to 60 percent of the total. Return on public land would form part of a more complex equation of land proceeds and infrastructure and environmental costs for the entire Waterfront.

Option 3 would have the same financial effects as Option 2 on housing costs and rents. It would depend on a federal decision to allocate capital directly for housing purposes, a decision which it has not at this point made, but which has been strongly advocated by the City and the Federation of Canadian Municipalities (FCM). The capital contribution could also be made by the Province, or cost shared between the two senior levels of government Consistent with the City's housing strategy of using modest City contributions to "lever" contributions from other governments, a one-time capital contribution of $10 million net should be allocated from the City budget toward this approach. This level is equivalent to its current Capital Revolving Fund or the annual level recommended by Mayor's Homelessness Action Task Force. A considerably larger federal contribution would still be required in order to substantially reduce overall ongoing rent supplement costs.

In regard to land proceeds, these are calculated as a "residual" once market-driven sales prices, construction costs, development soft costs, and land, servicing and environmental costs are taken into account. It is therefore likely that, despite the prime locations, land proceeds on the condominium portion will be at a normal level, in the vicinity of $20,000 per unit ($20 per square foot gross) in today's dollars, minus whatever portion of infrastructure/environmental costs are covered from this.

City staff as well as consultants for Ontario Reality Corporation, T-O Bid and the Waterfront Redevelopment Taskforce is compiling costs estimates for environmental work (flood protection and soil remediation), infrastructure, and community facilities for these new neighbourhoods. Village housing development would cover a portion of these costs; the other 10,000 or so units of housing in these two neighbourhoods would make similar contributions; and further resources would need to be sought elsewhere. Capital contributions from Village development would be through development charges and parks levies, at the same standard of contributions that applies to other new housing in the City. Since the large up-front costs to create new communities in expensive waterfront locations will lead to benefits in terms of new communities, improved environmental quality, waterfront amenity, and assessment base, it may be necessary to allocate funds from the City capital budget for a portion of the costs.

A key opportunity exists in the new federal/provincial infrastructure program announced in the October 1999 federal Throne Speech, which is likely to be implemented in the period following 2001. The Olympics partnership between the City and other governments is highly suited to a sharing of infrastructure costs. As part of its requests to the federal and provincial governments in regard to the Bid and the Olympic Villages, the City should therefore request that a portion of the new federal/provincial infrastructure program funds be earmarked for this purpose.

The specific choice of option to achieve affordable housing, and more specific options for development costs and return, will be developed in the course of negotiations following Council's consideration of this report. Staff will report back with more information at that time.

B. Details on strategy to protect tenants, persons who are homeless and neighbourhoods

(1) Protection of Tenants

During Olympic games and other hallmark events in other cities, some tenants lose their homes primarily because of speculation. The strategy proposes to limit Olympic evictions in two ways:

(i) through initiatives which would reduce speculation, e.g., visitor accommodation strategy, worker accommodation strategy; and

(ii) through initiatives which would improve security of tenure, e.g., enhanced legislative protection, service strategy, building standards improvements and enforcement protocol, and student residence strategy.

Speculation: Experiences from other cities show that when landlords decide that the Olympics will offer the opportunity to make high profits from accommodating visitors, evictions and rent increases occur. This is most often reflected in home rental brokerage schemes promising windfall gains for owners and high fees for accommodation brokers, or large scale conversions of lower cost accommodation, such as rooming and boarding houses.

For example, the Brisbane Expo (1988) is estimated to have caused about 605 tenant displacements so that units could be converted or held for visitor use (Shelter NSW, p. 28). In Vancouver (Expo 1988), it has been estimated that about 1,000 to 1,500 rooms were switched from monthly rental to tourist rental (Olds 1986, as cited in "2000 Olympics and the Residential Tenancy Market", G. Cox, et al, February 1998, p. 15). Such conversions are not beneficial for tenants, and often provide no long term economic benefit to the landlord.

Not all neighbourhoods are effected the in same way. Speculative behaviours based on attracting Olympic visitors may be strongest in areas close to public transit and within traditional tourist areas, and may extend to include regions beyond Toronto. Speculation may also be more prevalent in neighourhoods adjacent to Olympic venues because of the convenient location, provided the accommodation is up to tourist standards. Low cost rental housing in all parts of the City, regardless of quality, may be impacted by demand for worker accommodation long before 2008.

Increased demand for low cost housing, and speculation impacts on existing supply may have a drastic impact in Toronto. There is already a shortage of affordable housing and of rental housing (the vacancy rate has remained below 1 percent since 1993 and average market rents have increased by 7.1 percent in 1998, and by 5.1 percent in 1995[CMHC Annual Market Rent Surveys]). Tenant households have tended to have lower incomes than owner households. Research conducted by the Mayor's Homelessness Task Force in found that 106,000 tenant households in Toronto were paying more than 50 percent of their household income on rent (based on 1996 Census' "Taking Responsibility for Homelessness: An Action Plan for Toronto", Mayor's Homelessness Action Task Force, January 1999, p. 78). At the same time, demand for affordable rental housing is at critical levels, with estimates ranging from 1,900 to 2,400 units being required annually over the next few years, simply to keep pace with new demand (Homelessness Action Task Force, p. 140).

Managing Visitor Impact: Experiences from other cities show that realistic visitor projections and having a strong visitor accommodation strategy can play a critical role in discouraging speculation. It is anticipated that there will be a strong demand for accommodation beginning in advance of the Games, and peaking during the Olympic Games themselves. Initial estimates by TO-Bid are that 1.5 to 2 million visitors will come to Toronto and southern Ontario for the Olympics. Currently, the Toronto tourism industry reports that over 20 million tourists visit Toronto each year (on average 1.6 to 1.7 million per month), the City already has much of the infrastructure needed to meet demand.

Therefore, one way to protect tenants from evictions and loss of rental housing through conversions and redevelopment is to implement a visitor accommodation strategy that may include:

(i) ensuring organizations involved with the Games produce realistic visitor projections so that potential demand is not overstated;

(ii) requiring an undertaking by the Games organizers that they will discourage use of rental housing and low cost residential hotels by Olympic visitors and encourage alternatives such as new hotel/motel accommodation, homestays, and so on;

(iii) developing strategies for diverting demand away from the rental sector, which may include having the Games organizers partner with the tourism industry to develop a voluntary Olympic accreditation program (i.e. by agreeing to operate within a specific code of ethics, tourism based businesses would receive some form of Olympic "stamp of approval" and other related incentives); and

(iv) conducting a cost-benefit analysis of how the Games would impact on rental housing, in partnership with the landlord community, and communicating findings.

The strategy proposes that TO-Bid develop a comprehensive visitor accommodation plan for Council approval, with an emphasis on initiatives to divert visitors from residential accommodation.

Private landlords also have an interest in ensuring speculation does not occur during the Games, and in being educated about the risks involved in using rental accommodation to capture tourist trade -- i.e. that generally the cost of upgrading rental units to visitor standards is not viable based on the income which may be realized over the two-week period. The Greater Toronto Apartment Association has recently confirmed its interest in working with the City to on a strategy that would educate landlords about risks and benefits.

Managing Demand for Housing due to Employment: While tourists can have the most visible impact on rental housing supply, the anticipated increase in employment opportunities generated by the Olympics will also put pressure on supply. Unlike tourist accommodation, this demand may impact all neighbourhoods and all housing types, including low-cost rental housing. Should Toronto be selected as host City, a worker accommodation strategy should be developed by the Commissioners of Community and Neighbourhood Services and of Economic Development, Culture and Tourism.

Improving Security of Tenure: The Province under the Tenant Protection Act (TPA) establishes security of tenure protection. Some of the other cities that have hosted hallmark events have not had such protections in place. Even in places with security of tenure provisions, tenants have been displaced due to rent increases or in order for the landlord to renovate the unit. The TPA, since it regulates both rent levels and security of tenure, provides a good mechanism for ensuring that tenants are not evicted as a result of the Olympics. This report proposes additional temporary measures in the context of the Olympics.

Security of tenure means that a tenant cannot be forced to leave their home except for very specific reasons, and through a legislated process. A tenant can be evicted because of something they have done (e.g. damage or non-payment of rent) -- called "at fault" evictions. Tenants can be evicted because of something the landlord has done (e.g. converting the unit to another use, renovation, demolition, requiring unit for landlord's own use) -- called "no-fault" evictions. Landlords are required to serve notice of termination on the tenant if they want to evict the tenant, and may enforce the notice through the Ontario Rental Housing Tribunal by filing an application with the Tribunal. Most residential rental tenancies fall under the security of tenure rules of the TPA.

Speculation pressures created by the Olympics may create an environment in which tenants and residents are being evicted, whether legally or illegally. To prevent Olympics-related evictions, it is recommended that the Province be requested to make further enhancements to security of tenure rules which would limit no-fault evictions, mitigate at-fault evictions, extend protection to certain types of accommodation, and change procedures. Examples of enhancements that may be appropriate include:

(i) applying temporary security of tenure protections to long-term tenants of residential motels;

(ii) prohibiting conversion of rental residential units to suite hotel units;

(iii) establishing processes and tests to ensure that notices of no-fault evictions (such as landlord moving into the unit or due to renovation) are valid; and

(iv) establishing processes for at-fault evictions which would, as appropriate to each case, encourage mediation, recognize the pattern of rent payments, require that alternate solutions have been considered (such as rent bank assistance), delay the date the eviction would take effect until after the Games, and take into account the tenant's ability to find alternate accommodation.

These temporary amendments to the Tenant Protection Act would implement the proposed Residents' Rights Policy.

Service Strategy to Limit Olympic-related Evictions: In addition to legislative amendments, a service strategy which includes funding, education, mediation, referral and other supports can be an effective way to protect tenants (see Olympic Housing Centres in section 2.3). The City already has a number of initiatives in place that help protect tenancies, including the rent bank project, rental housing office, tenant information hotline, and early intervention project. The Province also provides support through its Homelessness Initiatives Fund and through funding for community legal aid centres. Services are provided by community agencies, including housing help centres (which operate housing registries).

With an Olympics, these initiatives may require additional funding, and new initiatives may be required to ensure that any increased demand for service can be accommodated. New initiatives would include, for example, monitoring and emergency response systems. The strategy proposed, therefore, includes directing the Commissioner of Community and Neighbourhood Services, in consultation with the TO-Bid, and the provincial and federal governments, to prepare for Council approval a service strategy that would improve security of tenure for tenants. The strategy would be implemented with the support of community organizations, TO-Bid and senior levels of government.

Building Standards Improvements and Enforcement Protocol: Tenants may sometimes be evicted because of repair work, where the unit is unsafe for occupancy. In Atlanta (Olympics 1996), a systematic process for identifying buildings in need of repair and using city codes to enforce the repairs was proposed. It was anticipated that this process would cause many tenants to be displaced, however information about impacts or the degree of enforcement is not available (Cox, p. 38 and Shelter NSW, p. 42).

If Toronto is selected as host City, Council should request that the Commissioners Urban Development Services and of Community and Neighbourhood Services to develop protocols for buildings standards enforcement during the period before and during the Games These protocols would balance the City's responsibility to keep homes safe with the lack of housing alternatives available to the occupant should they be required to vacate.

In addition, the City should request additional federal funding under the Residential Rehabilitation Assistance Program (which is administered by the City), for the full period until the Games. This will be a means of protecting low cost rental housing from demolition, renovation or conversion by improving its quality while keeping rents low. An amount of $5.5 million annually (in addition to the base allocation of $2 million) is proposed which would be targeted directly towards neighbourhoods near Olympic venue sites. The additional allocation should be made as soon as possible after selection as host city, to ensure that work is completed well before speculation pressures become evident.

Student Residences: North York Community Council, on October 21, 1998, recommended that no expropriation of student residences, or displacement of student residents on campus be allowed to occur as a result of any Olympic-related activity on the York University Campus.

Students living in residences often have input into decisions around their housing (usually through a student council). Where there is no such representation, security of tenure rules under the TPA apply. If the student housing is provided primarily to persons under the age of majority (i.e. private high schools and possibly some under-graduate residences), it will also be exempt from TPA security of tenure rules.

It is proposed that the Province be requested to encourage universities and colleges throughout Ontario which may provide housing for the Games and/or for the acclimatization centres, to develop housing strategies jointly with their students which would minimize the impact of the Games on student residences, whether or not the residencies are covered by the TPA.

(2) Protection for People without Homes

Olympic Games and other hallmark events are characterized by large influxes of visitors and greater demands on the use of public space. Although this influx of visitors may have positive benefits for tourism and other businesses, it can also create challenges at the neighbourhood level for residents who must deal with these extra demands. For people who are homeless, this experience is exacerbated by the reality that they must live much of their private lives in public places.

Security and policing efforts related to hallmark events are often characterized by increased enforcement of laws and by-laws restricting loitering, panhandling or sleeping in public places as part of a general effort to reduce public disorder. This has often led to the forced movement of people who are homeless as a strategy to prevent them or discourage them from entering public areas in the vicinity of events.

A review of the Olympic experience in other cities revealed that crackdowns on petty crimes, and dispersal of homeless people affected about 400 people in Barcelona. In Atlanta, a task force identified a number of new City ordinances passed in the wake of the Olympic nomination which "unfairly target homeless people for arrest." It was estimated that police arrested 9,000 homeless people and sentences were increased from 2 to 6 months (Cox, p. 39 and Shelter NSW, p. 43). Subsequently, a legal judgement found that police had exceeded their authority in making these mass arrests, and referred to inadequate training of enforcement officials prior to the event.

In Toronto, Olympic venues will be located in areas where people who are homeless access services or make use of parks and other public spaces. It was clear during discussions with community groups that there is concern that people who are homeless will be adversely affected and will be subject to street sweeps and other related activities that encourage movement or discourage squatting. It is critical that a successful Toronto bid balances the right of people who are homeless to access services and public places with the security needs of the Games. If this is not accomplished, there will be strong community opposition to proceeding with a bid.

While all residents may be impacted to some extent by the Games, people who are homeless are a particularly vulnerable group. Even with legal protections, including the Charter of Rights, they may be victims of discrimination because of impoverished appearance, lack of address or public perceptions. People who are homeless are disproportionately affected by efforts to curb minor infractions, despite the fact that they are more likely to be victims of criminal activity than perpetrators.

Toronto's increase in homelessness has resulted in more and more people living rough on the street and also more interventions with homeless people by the police. The Olympics have the potential to increase contact between homeless people and police, as well as to increase tensions between police and service providers.

The Police Working Group of the Advisory Committee on Homeless and Socially Isolated Persons has brought together key stakeholders to begin to address issues between the police, service providers and people who are homeless. They have made a number of recommendations relevant to the Olympic bid which are before the Police Services Board. These recommendations include expanded police training and education on issues of homelessness, formal linkages between the police and the Street Helpline/Community Information Toronto, as well as expanded opportunities for people who are homeless and service providers to participate in policing issues. It will be critical for the Olympic Bid to build on this work and to include the Police Working Group along with other members of the community in their deliberations in this area.

More and more homeless people are sleeping in downtown parks. Olympic-related events and movement of homeless people from sites where venues are being developed may increase pressures in some parks. Use of parks is regulated by the City under the uniform parks by-law. This by-law is the result of an extensive review and significant experience, and it provides a good balance between the needs of local communities for access to their local parks and the needs of individuals to use the parks. It also provides the Commissioner of Economic Development, Culture and Tourism with a range of options for establishing procedures and permits to deal with special circumstances. As part of the overall strategy for the Games, and the potential for increased park use, a strategy should be developed for managing the increase in demand, using the tools available through the uniform parks by-law

Enhancing specific services to people who are homeless can increase the number of options available to people living on the street and can reduce the potential of conflict with the police or security services. The experience in Toronto and in other cities has found that service responses are more effective over the long term than coercive measures like street sweeps. Coercive measures are far more likely to drive people further underground where service providers cannot reach them. They most often rely on the criminal justice system, which is more costly and cannot address the long-term need for housing and services.

In contrast, a range of service strategies has been effective at developing long-term solutions for people living on the street. Outreach workers play a critical role in these strategies as they work on a one-to-one intensive basis with the most isolated and those most likely to live outside. Outreach workers can develop trusting relationships with people who otherwise would not accept assistance and can connect them to appropriate service and support. To accomplish this goal, outreach workers must take the time to ease very isolated individuals into settings which make few demands. These might include drop-ins and shelters for the hardest to serve, or transitional housing with special supports.

Proposed Response on Homeless People

To minimize the impact of the Olympic Games on people who are homeless, the following elements of the overall strategy are proposed:

(i) acknowledge the rights of homeless people to equal protection, non-discrimination, and due process within the proposed Residents' Rights Policy, including a process to monitor these rights and to mediate grievances;

(ii) if Toronto is selected as host city, Council should request the Toronto Police Services Board, the Games organizers and the proposed Olympics Ethics Commissioner to work with community service providers and police to develop protocols and training for police, game's security officials and other enforcement agencies which would balance security requirements with the rights of homeless people;

(iii) Council should request that the Olympics Ethics Commissioner establish a code of conduct for the Games which reflects the security protocols referenced above; and

(iv) Council should direct the Commissioners of Economic Development, Culture and Tourism and of Community and Neighbourhood Services to make recommendations to Council for an Olympics parks strategy which would recognize the vital need for open space to the lives of many homeless people.

In addition, a number of service strategies are proposed to better support the needs of people who are homeless. These include:

(i) expanded funding to outreach workers to provide intensive one-to-one supports to the most isolated;

(ii) expanded funding to drop-ins to ensure hours of service, access and geographic coverage;

(iii) transitional housing for people who are chronically homeless and require additional supports;

(iv) additional supportive housing for people with mental illness and addictions;

(v) alternative models for emergency shelter to meet the needs of the hardest to serve; and

(vi) expansion of programs like the squeegee diversion initiative.

Should Council approve the proposed strategy, it is further recommended that these initiatives be developed and implemented in consultation with community-based service providers and people who are homeless.

The Olympics may create opportunities for other positive initiatives. Based on the principle that benefits and burdens should be shared, during discussions with the community, the issue arose about the potential of ensuring employment opportunities created by the Olympics are equally available to the homeless and people with very low incomes. For example, there may be opportunities for linking capital/infrastructure projects to skills training, and programs which serve to increase the access of residents to jobs and business opportunities stemming from development. Access to employment issues will be discussed in a separate report to Council about socio-economic impacts of the Games.

(3) Protecting Neighbourhoods

Accelerated urban change, increased house prices and land values, and market speculation are characteristic of hallmark events. The 1998 World Expo in Brisbane, for example, stimulated interest in the previously undervalued housing market, with some house prices increasing by more than 56 percent, 33 boarding houses being demolished, 22 residential buildings being converted to tourist accommodation, and a 36 percent drop in vacancy rates (from 4.1 percent to 1.5 percent). Gentrification resulted in an increasing number of residents moving out of Barcelona because they could no longer afford to live downtown. Beginning shortly after the city's selection as host city in 1986, house prices increased on average by 250 percent, due to increased attractiveness of the city, lack of available land, and higher construction costs.

The most visible direct impact of hallmark events in residential neighbourhoods is the loss of housing stock through demolition for construction of venues and/or related infrastructure. Since Toronto's Olympic venues are to be developed on non-residential sites, or held in existing facilities, loss of housing stock due to development of venue sites will not occur.

Neighbourhoods located near venue sites may be under more pressure than other neighbourhoods due to rising land costs and housing loss related to infrastructure work and development. There are about 36,000 rented occupied dwellings in the 24 neighbourhoods abutting or adjacent to the waterfront, which may experience the most direct speculation impacts. Of those 24 neighbourhoods, 10 include census tracts which City research has ranked as falling within the priority areas for children, youth, seniors and immigrants (Urban Planning and Development Services, "Social Indicators And Priority Areas", July 1999.)

Planning for Impacts and Monitoring Results: The City already has a well-developed framework of planning and community networks that support neighbourhood and community based approaches for managing development and change. Managed properly, the Olympics may provide a catalyst for positive changes.

Managing properly means that potential impacts and opportunities must be examined at a local level, particularly for neighbourhoods adjacent to venue locations, and planned for well in advance. Impact studies will be required to identify both the impacts and opportunities in each neighbourhood in relation to anticipated activities, and should be comprehensive enough to consider changes in transportation, land use and business activities, etc., in addition to housing impacts.

Response strategies should also be comprehensive, and provide a context within which the Olympics can make a positive contribution in the long run, rather than to establish a simple defence strategy. Strategies may include identifying funding requirements or temporary legislative changes necessary to support planning initiatives. It is proposed that in addition to funding community service initiatives, a portion of federal and provincial tax revenues generated by the Games would be directed to offsetting the cost of the impact studies, and to neighbourhood Olympic projects.

To limit loss of rental housing, initiatives which would improve the condition of rental housing in advance of the Games may be useful. For example, designating neighbourhoods as community planning areas (Planning Act section 28) provides one way to direct funding support to a neighbourhood within a context of overall planning. Other controls to limit demolition or conversion of rental housing stock may also be useful. Earlier in this report, increased funding for the Residential Rehabilitation Assistance Program is proposed as a means by which the condition of existing housing stock may be improved, and this can reduce demolition and conversion pressures.

Increased monitoring of Olympic impacts in these neighbourhoods, in addition to the general City-wide monitoring function of the proposed Olympic housing joint body, will be required, to facilitate sharing of "best practices" and to respond to unanticipated impacts.

While the downtown neighbourhoods are likely to experience the greatest degree of impact, it is anticipated that the impact of Olympic visitors will be shared by all neighbourhoods having access to public transit, or that include sites for "conditioning centres" or practice venues including regions outside of Toronto. Therefore, Council may want to request that TO-Bid, engage other regions in a discussion of impacts and joint solutions.

Proposed Response on Neighbourhoods: To minimize negative impacts on neighbourhoods, and to maximize the potential of the Olympics to contribute to neighbourhood goals, the strategy proposes the following elements:

(i) establishing Olympic Housing Centres in venue neighbourhoods to provide one-the-ground community supports such as information and education services, linkages to other support (including legal clinics, accommodation registries, housing help centres, mediation services, and rent banks). The Centres would also be the local "eyes and ears" of the proposed Olympic joint body, thereby supporting its monitoring role. The centres would be established through grants to existing agencies (estimated at $3.4 million), and would work proactively with local landlords to help avoid evictions.

(ii) undertaking local area impact assessments in neighbourhoods near venue sites (currently estimated at 24 neighbourhoods at a cost of $1.2 million), with a view to highlighting potential areas of concern and areas of opportunity, and developing strategies to maximize benefits. These strategies may result in proposals for funding certain initiatives (estimated at $2.4 million), and may identify a need for temporary legislative changes to improve protection for housing supply and encouraging new affordable housing.

With respect to the potential for loss of rental housing across the city due to speculation (conversions, renovations and demolitions) the City may require additional powers to control these activities. Recognizing that higher than usual housing demand generated by the Olympics will make finding new housing difficult, the proposed Residents' Rights Policy should also include provisions which would improve compensation for tenants beyond what is required under the Tenant Protection Act, with an emphasis on providing alternate accommodation.

(4) Funding the Strategy for Tenants, Homeless People, and Neighbourhoods:

The City is currently funding a number of initiatives that support tenants, homeless people and neighbourhoods, and the Province through programs such as the Homelessness Initiatives Fund funds others.

(5) Commitments Required to Implement the Residents' Rights Policy and Service

Strategy:

The following commitments are required to implement the Residents' Rights Policy and Service Strategy:

Commitments from the City:

(i) that a Residents' Rights Service Strategy be developed, upon selection of Toronto as host city, involving funding enhancements to existing services to help low-income people keep their housing and avoid eviction due to Olympics-related demand for accommodation; and

(ii) that associated strategies to meet Olympics-related demand for accommodation and other impacts be developed upon selection of Toronto as Olympic host city, including a worker accommodation strategy, a student accommodation strategy, a temporary Building Standards Protocol, a security protocol in regard to treatment of homeless people, a parks strategy to ensure residents' ongoing needs are met during the Games, and Olympics Housing Centres in neighbourhoods near Olympic venues.

Commitments from the Provincial government:

(i) that upon selection of Toronto as host city, special legislation be passed which would give effect to a Residents' Rights Policy, by making time-limited amendments to other legislation and establish measures to provide additional protection of tenants from Olympics-related evictions, and additional protection of rental housing from conversion, demolition and rent increases associated with Olympics-related demand for accommodation.

Commitment from the Federal government:

that additional Residential Rehabilitation Assistance Program (RRAP) funding be allocated in the years leading up to the Games, to ensure the good condition and affordability of existing rental housing and limit its attractiveness for conversion, demolition, and speculation.

Commitment from TO-Bid:

(i) that it will prepare, in consultation with City staff and community representatives and subject to the final concurrence of City Council, a visitor accommodation strategy with due emphasis on avoiding negative impacts of Olympics-related demand for accommodation;

(ii) That TO-Bid commit to the approach of continuing to use non-residential sites for proposed venues.

(3) Implementation of Strategies for Tenants, Homeless People and Affordable

Housing:

The recommendations of this report, if agreed to by the City, T-O Bid, and the provincial and federal governments, would be a framework. Following adoption of this report and any amendments, it would be necessary to negotiate the arrangements in more detail. Such arrangements should then be set out in a multi-party agreement to be completed during 2000.

Housing Co-ordinating Body:

To carry the strategy forward would require a co-ordinating body. This would be separate from T-O Bid, which is not directly responsible for protection of tenants, homeless people, and neighbourhoods, nor for housing production. It would be separate from any Waterfront co-ordinating agency that may emerge from the Fung Commission, as such a Waterfront body would have a broader geographic mandate, longer time frame, and probably a lesser focus on and lesser resources for affordable housing.

The role of the joint co-ordinating body would include the following:

(i) to be a on ongoing link between the municipal, provincial and federal governments, and, where required, with other municipal governments impacted by the Games;

(ii) to develop detailed recommendations for provincial legislative changes;

(iii) to establish evaluation criteria for approval by the appropriate levels of government and for monitoring achievements against those objectives;

(iv) to provide a forum to address and effectively channel community concerns about the impacts of the Games;

(v) to monitor impacts and, when required, make recommendations for legislative and program changes by the appropriate jurisdiction; and

(vi) to assess and report on the impacts of the Games within one year after the Games are completed, which would be useful to other cities planning hallmark events, and to Toronto in the event that future hallmark events are planned.

The joint body may include both staff and political representation from all three levels of government, representation from the agency sponsoring the Games, and representation from the tenant, landlord and homelessness communities. The joint body would have a liaison with the proposed Olympics Ethics Commissioner.

The organizational, governance and accountability model that would be appropriate for such an inter-jurisdictional group is unknown at this time. The model employed should maximize the ability of the group to make decisions and take action, recognizing that each level of government and organization has its own accountability framework that it must work within. If the proposed strategy is approved, it is recommended that the Commissioner of Community and Neighbourhood Services, in consultation with the City Solicitor, the provincial and federal governments, and TO-Bid be requested to report back with options for an appropriate organizational, governance and accountability model for the joint body.

As this report is being prepared, a community consultation process around the Master Plan is underway. The process will include consultation on specific housing issues. It is recommended that the strategy proposed in this report be reviewed by the Commissioner of Community and Neighbourhood Services based on the results of the Master Plan consultation process.

(7) Summary on Housing:

Increased housing demand combined with inadequate supply and speculative behaviour, and competing demands for use of public space may contribute to evictions, rent increases, and harassment of homeless people during the Olympic Games in Toronto, as has happened elsewhere in the world. Conversely, the Olympics may provide an incentive for all three levels of government to respond more aggressively to recommendations made by the Mayor's Homelessness Task Force, including the development of affordable housing, protecting tenants and homeless people, and protecting neighbourhoods.

This report recommends a strategy to help minimize negative impacts on tenants, homeless people and neighbourhoods which may result from hosting the 2008 Olympics, and a strategy to maximize the potential of the Games to create affordable housing.

The strategy for protecting tenants, homeless people and neighbourhoods includes making legislative changes and implementing a service strategy.

Housing targets are for 20 - 25% of Village units available to qualifying families and individuals on the City's housing waiting list and 20 - 25% to be low-end-of-market condominiums and "moderate market rent" units. Public resources are required in order to ensure better affordability than the low-end-of-market condos and high-end rental units that the private sector will produce. The strategy would be co-ordinated through a government landowner partnership or a new waterfront development agency. The strategy would use a mix of four tools: public (federal, provincial and City) land provided at no cost to the Villages; existing City and provincial incentives such as a development charges exemption and PST rebate; rent supplements; capital subsidy provided from early land proceeds realized by the waterfront agency; and capital subsidy from a federal capital-for-housing source to be determined.

A joint co-ordinating body is required in order to implement the housing strategy, with participation from the City, Province, Federal Government and TO-Bid.

Attachment No. 6:

Preliminary Estimate And Description Of Potential City Costs

This attachment provides a preliminary estimate and description of potential costs to the City ($27 million) in providing support and ancillary services to accommodate the 2008 Olympic Games.

Police (Security):

The TO-Bid budget provides an allowance of $92.0 million towards security costs, which is based on applying the security model used at the 1996 Atlanta Games. Under this model, private and volunteer security forces, paid through the Games budget, are responsible for security within specific boundaries under the direction of the Organizing Committee. They are also responsible for perimeter and access control as well as Olympic Family security. However, there will be additional demands on public defense, intelligence, and law enforcement agencies for perimeter security, dignitary protection, general security outside designated areas, protection of the Olympic Family while in-transit and law enforcement within each of their respective jurisdictions.

The Toronto Police have submitted an estimate of $6 million for the maximum portion of the Games-related law enforcement and security services that they can supply while still maintaining adequate levels of service in the rest of the City. The resources applied to the Games by the Toronto Police will have to be supplemented by significant resources from senior government agencies such as the Ontario Provincial Police and the Royal Canadian Mounted Police.

Historically, security for the Olympic Games has received extensive support from senior level law enforcement agencies, given the high international profile of the Games and attendance of foreign dignitaries. At the 1996 Atlanta Games the federal government incurred $140 million of expenses for various safety and security services provided by the U.S. Army, the Federal Bureau of Investigation, the Secret Service, the U.S. Marshals Service, the Drug Enforcement Agency, the Bureau of Alcohol, Tobacco and Firearms, the U.S. Coast Guard, and the Federal Emergency Management Agency. The New South Wales State Government is expected to supply $160 million of police services for the 2000 Games in Sydney. It is expected that our senior levels of government will be providing the necessary similar services in their support of the Games.

Transportation: The proposed Master Plan for the 2008 Toronto Olympic Games contains an allowance of $174.0 million towards transportation related costs. A substantial portion of this allowance is related to providing air travel to Toronto for all of the athletes ($34.0 million). The remainder is allocated towards operational planning ($16 million), local transportation for the Olympic Family ($74 million), providing increased public transportation services for spectators ($42 million), and parking services ($8 million). The non-air travel portion of these estimates have been developed using the actual total costs from the Atlanta Games, with an additional allowance of approximately 20 percent ($25 million) added to accommodate a need for improvement in operational effectiveness.

The allocation for increased spectator transportation is intended to cover the additional operating costs that potentially may be incurred by the public transportation system in Toronto. Discussions with transit staff have introduced the possibility that the additional transit operating costs may be fully recovered from fares, and thus the possibility that TO-Bid's allocation could be redeployed to offset non-operational transportation costs (ie. temporary parking facilities and bus/train stops). Nonetheless, estimates of the potential additional costs, notwithstanding the amount provided for in the TO-Bid budget, have been prepared by the City's Transportation Services Division, the Toronto Transit Commission, and GO Transit.

Transportation Services:

With respect to roads and traffic control, the Transportation Services Division of Works and Emergency Services have provided a preliminary estimate of $5 million for additional operating costs, based on the following anticipated activities:

· Pedestrian crowd control and clean-up ($2.0 million)

· Modifications and operation of the traffic signal control system and freeway traffic control system ($1.0 million)

· The planning, design, and operation of reserved lanes throughout the central core of the City ($2.0 million)

Given the expertise of the Transportation Services staff and their experience with other major events such as Caribana and the Millenium celebrations, we believe the estimates to be reasonable. However, according to TO-Bid staff, the estimated cost for additional transportation planning and operations management is incorporated within the $16 million operations management component of the TO-Bid transportation budget. Finance staff will be exploring the opportunity with TO-bid of funding the City's potential additional transportation services cost from within this budgeted amount.

As part of the overall City long-term infrastructure planning, there are a number of road improvement projects that Transportation staff have identified to accommodate projected transit and pedestrian growth. Some of these projects are planned irrespective of the Olympics, and some are being considered as part of the City's waterfront vision. The Bremner Blvd./Nelson Mandela Way/Fort York Boulevard link from Spadina Ave. to Lake Shore Blvd., at an estimated cost of $8.0 million, is already included in the City's 2000 Capital Budget. The construction of new grade separated pedestrian connections across Lake Shore Boulevard, at an estimated capital cost of $9.0 million, and the completion of a continuous pedestrian route along Queen's Quay (cost not yet available), form an integral part of the City's waterfront vision. While these improvements would benefit the Games, it would be inappropriate to assign these costs to the Games, since they will provide long-term benefits to the City.

Public Transit:

The TO-Bid budget allocation of $42 million for additional spectator transportation incorporates allowances for increased TTC service, contracted transportation services, and changes to transit routes. TTC staff have indicated that this amount appears, on a preliminary basis, to be sufficient to cover potential additional TTC operating costs. However, TTC staff have indicated that the venue locations, traffic patterns, and organizational responsibilities will have to be better understood before a final estimate can be prepared. Based on their discussions and meetings with Atlanta officials, TTC staff have highlighted a number of the operational issues faced in providing transportation services during the Atlanta Games. In particular, there was difficulty in securing a sufficient temporary fleet of vehicles and drivers, despite financial aid from the federal government. These difficulties were partly the result of initial underfunding of the transportation budget and the late start in seeking out resources. As a result, Atlanta staff were only able to operate 75% of the vehicles that were originally planned for service during the Olympics.

TTC staff have indicated that the Commission's fleet requirements associated with the Olympics are essentially the same as those outlined in the TTC's 10-year capital program. They indicate however, that 800-1600 additional buses will be required for Olympics spectator transportation requirements over the 16 day event. According to staff, the need for 800 vehicles can be met by accelerating vehicle purchases already included in the 10-year plan and through the temporary extension of the service life for 435 older vehicles.

The TTC's approach of accelerating its own vehicle purchases would result in a more secure commitment of resources than was available in Atlanta. However, the adequate provision of vehicles will still have to be matched by an equal provision of vehicle drivers. If arrangements have to be made to secure these drivers from other public or private operators, there may be an opportunity to make similar arrangements for their vehicles. An earlier start at operational planning than in Atlanta could still result in the adequate provision of vehicle and staff resources from other operators rather than through the accelerated implementation of the TTC capital budget. Given these issues, discussions between Finance, TO-Bid and TTC staff are continuing to discuss the opportunities and options available to ensure fleet requirements are achieved.

In addition, some new TTC infrastructure will be needed to accommodate Olympic demands. Part of this infrastructure has long-term benefits and has been identified in other studies. This includes the construction of an additional platform at Union Station at an estimated cost of $60 million. While these improvements would benefit the Games, it would be inappropriate to assign these costs to the Games, as they will provide long-term benefits to the City. The provision of these works is currently being considered by the Waterfront Vision Task Force. However, TTC staff have also identified the need for other temporary works that will not bring long-term benefits to the City. These include a temporary bus terminal in the Port Lands, and new gateway commuter parking lots from which spectators can be transported to the nearest TTC or GO Transit station.

GO Transit staff currently estimate that the full additional operating costs related to the Games will be recovered through additional fare revenues. However, they have indicated that a Transportation Master Plan and fare revenue strategy will have to be developed before the net additional costs can accurately be predicted. GO staff have indicated that their capital requirements associated with the Olympics are essentially the same as those outlined in their 10-year capital program. The expansion outlined in the 10-year plan includes approximately $575 million for fixed facilities and $475 million for rolling stock. This is to include a $100 million upgrade of GO facilities at Union Station, which is currently being considered by the Waterfront Vision Task Force. In addition, new temporary GO stations will be required at Cherry St. and at Exhibition Place at an estimated cost of $30 million. However, GO staff have suggested that the Cherry St. station may evolve into a permanent station and may therefore have benefits lasting well beyond the length of the Games.

Fire Services:

The Toronto Fire Services staff have prepared a preliminary estimate of $6.6 million for the cost of dedicating staff to key sites throughout the Games. The stationing of resources on the Games site is necessary as the crowd densities and other factors would otherwise make response times irregular. In addition, specialized resources will have to be available to handle emergency response to more extreme potential events.

Finance staff find this estimate to be reasonable and approximately in line with the amount budgeted for the 2000 Sydney Games.

Ambulance Services:

The TO-Bid budget includes $5.9 million for the provision of medical services during the Games. This amount is intended to fund the cost of providing polyclinics at each major venue and for athlete drug testing. Additional emergency services will have to be provided by the City's Ambulance Services staff. A preliminary estimate of $5 million, based on service levels in Atlanta, has been submitted by Ambulance Services staff for the cost of dedicating City resources to key sites throughout the Games. The stationing of resources on the Games site is necessary as the crowd densities and other factors would otherwise make response times irregular.

It has been assumed by Ambulance Services staff that, for coordination reasons, one emergency service will be responsible for all of the Games venues both in Toronto and in the "905" area. However, it has also been assumed that the portion of the costs incurred outside Toronto will be recovered from the host municipalities. Therefore, the total estimated cost to Toronto will only be $4 million.

The Toronto Ambulance Services' estimate for additional operating costs appears to be reasonable and approximately in line with the New South Wales government budget for the 2000 Sydney Games.

Ambulance Services staff have suggested that a new ambulance station will likely be necessary as part of the broader residential redevelopment of the Port Lands under the waterfront vision, and that the early construction of this station will greatly facilitate providing service during the games. However, it would not be appropriate to assign the cost of this facility to the Games budget.

Solid Waste Management Services:

Solid Waste Services staff have submitted an estimate of $700,000 for the cost of additional collection and services at the Games sites. Given their expertise and experience at major events, the amount would appear to be reasonable.

Housing Services:

The City's housing staff have submitted an estimate of $4 million for the cost of administering a "Residential Rights Service". The objective of this program would be to protect the rights of tenants and the homeless during the Games.

Parks and Recreation:

It is projected that the general increase in visitors will result in an increase in the clean-up and maintenance costs at parks and attractions. Parks and Recreation staff have submitted an estimate of $650,000 to fund this additional maintenance work and to fund an increase in horticultural plantings at high profile locations. The amount appears to be reasonable.

Exhibition Place:

The additional cost to Exhibition Place is basically the foregone revenues from events that would have to be cancelled because the Olympics are occupying the grounds. Given the time frame proposed, the only major event that would definitely be displaced is the annual Canadian National Exhibition. However, depending on the exact timing of the Olympic move-in and move-out, there may also be some impact on trade shows that presently take place during August/September. However, Exhibition Place staff could potentially be re-deployed to work on the Olympic site to offset the lost revenues. Therefore, it has been assumed that no net additional costs will be incurred by Exhibition Place as a result of the Games.

Attachment No. 11:

Harmonized Environmental Assessment Process

The environmental assessment (EA) program for the Toronto 2008 Olympic bid will meet the requirements of both Federal and Provincial legislation on Olympic projects, and demonstrate a commitment to environmental protection and public involvement in the EA process. It will demonstrate that the Bid has a comprehensive, predictable and proactive approach to environmental issues. If possible, this will be completed before the International Olympic Committee makes a final decision on the host city in Moscow in 2001.

The Olympic bid's consultants have negotiated with Federal and Provincial Environment ministries to develop a co-ordinated EA process for the Games bid. Both levels of government will formally endorse the process, within the context of existing legislation and mandates. There is agreement in principle on a two-stage process - Phase 1 is an overall planning level EA, and Phase 2 is individual project level EAs. This model is based on the practice of using "Class EAs" when many projects have comparable and predictable environmental effects. Class EAs are contemplated in both the Federal and Provincial acts.

Phase 1 Report: The scope of the reports for each phase is subject to determination by the key groups. The Phase 1 report will likely detail the Olympic program, the EA process, and the public and stakeholder involvement program. It will provide a generalized description of the existing environment, and a preliminary evaluation of the potential environmental effects of the various activities. The activities will then be grouped into classes, with specific requirements for follow-up activities in the Phase 2 report. The Phase 1 report will be:

· submitted by federal responsible authorities to the Canadian Environmental Assessment Agency for declaration as a Model Class Screening Report (MCSR); and

· submitted to the Ontario Ministry of Environment for endorsement.

Phase 2 Reports: A Phase 2 report will be prepared for each individual project or undertaking. It will provide a detailed description, a detailed profile of the existing environment, and an analysis of potential environmental effects, mitigation measures, and the significance of residual environmental effects. The Phase 2 reports will be prepared to:

· meet the requirements of the CEAA, in accordance with the procedures in the MCSR (Phase 1 report); and/or

· meet the requirements of a Class EA under the Ontario Environmental Assessment Act (e.g., Municipal Class EA); or

· document best practices for the Bid for any projects that do not require approval under either the Federal or Provincial legislation.

Attachment: No. 12

Olympic Games Summary of Agreements

1. BID CITY AGREEMENT

s. 3 Representation on TO-Bid Board (one third COA appointments, two thirds City appointments - all mutually agreeable);

s. 4 (a) vi - authorizes the Chief Administrative Officer or his designate to provide any necessary consents or approvals under the Bid Agreement;

s. 4 (b) (ii) - City and TO-Bid must indemnify COA and accept all liability;

s. 4 (c) - Community Consultation process required and including an opinion poll;

s. 4 (e) - COA owns all intellectual property rights relating to the Bid;

s. 4 (i) - if Bid unsuccessful, surplus to be given to the City to create a lasting legacy;

s. 4 (l) - parties acknowledge that they are familiar with the form of the host agreement (Athens model - 2004);

s. 5 (b)- interim management team to be established immediately upon the awarding of the Games to the COA and the City, then all costs to be incorporated;

sets out requirement to comply with IOC Host City Agreement and representation on OCOG;

s. 6 (b) - Agreement conditional upon federal and provincial financial and other assistance satisfactory to the COA and the City in all respects, otherwise null and void;

2. HOST CITY CONTRACT

I. Basic Principles

s. 1 - IOC entrusts organization other Games to the City and COA - jointly and severally liable to fulfil all of their obligations under the Host City Agreement;

s. 6 - ICOG to be established within eight months of the execution of the Host City Contract;

s. 7 - the City, COA and OCOG are jointly and severally liable for all commitments related to the organization and staging of the Games;

s. 9 - agreements between the City, COA and/or OCOG relating to the financial responsibility for the Games must be approved by IOC Executive Board;

s. 10 - the City, COA and OCOG must indemnify and hold harmless the IOC, its officers, employees and agents, except for willful misconduct or gross negligence by the IOC;

s. 12 - the City and OCOG are responsible for organizing various IOC meetings leading up to and during the Games including a three-day IOC session just before the opening ceremony;

II.Principles of Organization

III.

s. 13 - within one month of its creation, OCOG must sign the Host City Agreement;

s. 14 - the City, COA and OCOG cannot enter into agreements or discussions contrary to their commitment to the Olympics;

s. 17 - OCOG to provide a reliable system of transportation for the Olympic family;

s. 18 - City and OCOG to provide a reliable system of transportation for the general public;

s. 19 - City and COA acknowledge respect for the environment and commit to promote the protection of the environment;

s. 20 - within one year after the creation of the OCOG the OCOG must submit a general organization plan for itself and the Games to the IOC Executive Board for approval. Changes to the plans are subject to prior approval of the IOC Executive Board;

s. 21 - the City, COA and OCOG undertake to ensure all necessary security measures are in place;

s. 22 - the City, COA and OCOG shall ensure all necessary medical/health services are in place and that medical services are provided free of charge to all accredited persons to the Games;

s. 22 - OCOG responsible for ensuring all necessary personnel are able to obtain appropriate work permits and that Olympics equipment and supplies, including medical supplies, enter the country duty and tax free;

s. 23 - OCOG must submit half-yearly reports to the IOC Executive Board respecting the progress of preparation for the Games, and quarterly in the last two years;

s. 24 - IOC will establish a Coordination Commission to manage a working relationship between the OCOG and the IOC;

s. 25 - IOC and OCOG will mutually share their knowledge and expertise respecting the organization of this and future Olympic Games;

III.Organization

s. 26 - Olympic Village - to be provided by the OCOG in accordance with Appendix "D"; to house all Olympic competitors, team officials and other team personnel;

room and board to be provided to standards In Appendix "D" and free of charge;

s. 27 - Media Accommodation - OCOG to provide media accommodation in accordance with Appendix "E" specifications for accredited media representatives.

s. 28 - Accommodation for Olympic family - OCOG is to provide adequate accommodation for all accredited members of the Olympic Family and accompanying persons as specified by the IOC in hotels designated by the IOC Executive Board;

Terms and Conditions, including the price of rooms as set out in Appendix "F";

OCOG must provide hotel rooms for sponsors, suppliers, IOC broadcaster guests and marketing partners in accordance with Appendix "G";

s. 29 - Accommodation for Spectators - the City, COA and OCOG shall take special efforts to control the availability and pricing of hotel rooms in and around the City during the Games;

s. 30 - General Price Control - The City, COA and OCOG must ensure that reasonable prices are charged to non-accredited persons attending the Games;

IV.Organization of Sports Program

s. 31 - Sports Program - IOC will inform the OCOG of the program of the Games (sports and discipline from which the OCOG will establish a daily program for IOC Executive Board approval no later than three years before the Games;

s. 32 - minimum technical requirements for each sport - the City, COA and OCOG undertake to respect the minimum technical requirements for each sport;

s. 33 - Olympic venues - the size, contents and locations of Olympic venues proposed by the City and COA in its bid application cannot be modified without approval of the IOC Executive Board and the relevant Sports International Federation;

V.Organization of Cultural Program

s. 34 - Cultural Program - at least three years before the Games the OCOG must submit a control program to the IOC Executive Board for approval;

VI.Ceremonies, Olympic Flame and Torch-Relay

s. 35 - Ceremonies, including opening ceremony - the City, COA and OCOG must submit scenarios for all ceremonies to the IOC Executive Board for approval;

s. 36 - Olympic Flame and Torch Relay - all matters relating to the Olympic Flame must be submitted to the IOC Executive Board for approval;

s. 37 - Performance at the Ceremonies - OCOG to ensure rights to use performances in future presentations are given to the IOC.

VII - Financial and Commercial Obligations

s. 38 - Acknowledgement that IOC owns all rights respecting the Games and will assign rights to the City and COA as sees fit;

s. 39 - City and COA must take steps necessary to ensure IOC symbols, trademarks and proprietary rights are legally protected in Canada;

s. 40 - IOC will own proprietary rights to all graphics, visual, artistic, intellectual works or creations developed by the City, the COA or the OCOG regarding the Games;

s. 41 - Deposit - the guarantee deposit to be increased to one million U.S. dollars within ten days of signing the Host City Contract;

Deposit to be increased to a total of five million U.S. dollars, to be paid by the OCOG by one year before the Opening Ceremonies of the Games, and returnable to the OCOG after presentation of the final accounting;

in the event the Games do not take place in the City as contemplated, the entire deposit plus interest will become the property of the IOC.

s. 42 - division of surplus - to be 20 % to the IOC; 20 % to the COA; and 60 % to the general benefit of sport in Canada as determined by the OCOG in consultation with the COA;

- OCOG to provide to IOC Executive Board for approval, a statement of the accounting principle to be used in determining surplus recognizing as a principle that revenues from television rights, sponsorships, ticket sales and similar sources are not to be used for providing infrastructures.

s. 43 - admission tickets - the system for distributing and pricing tickets is to be submitted to the IOC Executive Board for approval at least two years prior to the opening ceremony;

s. 44 - Advertising and Commercial Activity at Venues - the City, COA and OCOG must ensure the Olympic Charter provisions are strictly observed so that no advertising is placed within or outside of Olympic venues within the view of television cameras covering the sports at the Games or spectators watching the Games;

the City cannot engage in any independent marketing or signage programs without prior approval of the IOC Executive Board;

s. 45 - Marketing Programs - the IOC Executive Board must approve all elements of every marketing plan;

the City, COA and OCOG must protect the rights granted to Olympic sponsors against ambush marketing;

the City, COA and NOC are responsible for paying IOC royalties on marketing programs.

VIII - Media Coverage of the Games

s. 46 - Television and Radio Broadcasting Agreements - all such agreements must be negotiated and concluded by the IOC and these agreements will contain the facilities and other requirements to be provided by the OCOG and/or host broadcaster.

49 % of the net revenues from television and radio broadcasting will be granted to the OCOG (net equals amount received less IOC expenses in relation to the agreements);

s. 47 - Television and Radio Facilities and Services - the OCOG is responsible for making available, at its expense, the host broadcast organization of the Games which is responsible for providing facilities, services and other requirements for electronic coverage and broadcasting of the Games as per Appendix "E";

Rates to be charged for use of such facilities, services, etc. are to be in accordance with the IOC media guide;

all contracts between the OCOG and the host broadcaster and any other telecommunications or service provided must be approved by the IOC Executive Board;

s. 48 - Press Facilities and Services - OCOG is responsible for making available facilities for media in accordance with the IOC media guide and at no charge to the media except as authorized in the IOC media guide;

s. 49 - Rate Card Prices - charges to media will be kept as low as possible and will not necessarily result in full cost recovery by the OCOG so as to ensure full worldwide coverage.

IX - Other Obligations

s. 50 - Information Systems - OCOG to develop information systems, including data processing, as required and as designated by the IOC Executive Board (Appendix "H");

s. 51 - OCOG reports to the IOC upon conclusion of Games - final report must be submitted to IOC Executive Board for approval and copies to be provided to IOC free of charge;

X - Termination

s. 52 - Termination of Contract - The IOC Executive Board can terminate the Host City Agreement and withdraw the Games from the City if there is a state of war, civil disorder or belligerence; the IOC believes that the safety of participants in the Games would be seriously threatened; the failure of the federal government to either its undertaking respecting accreditation and entry of Olympic athletes and officials; or a violation by the City, the COA or the OCOG of any material obligation under the Host City Contract, the Olympic Charter or applicable law.

If terminated, the IOC retains its right to claim damages while the City, COA and OCOG waive their right to claim any form of indemnity or damages from the IOC.

XI - Miscellaneous

s. 53 - Appendices - the City, COA and OCOG must abide by the terms and conditions in Appendices I, J and K respecting the IOC Medical Commission, insurance for the Olympic Family and Olympic Protocol respectively;

s. 54 - Damages

Where the IOC Executive Board determines that the default can be cured by damages, the IOC can withhold payments due to the OCOG.

s. 55 - Delegation by the IOC - at the discretion of the IOC Executive Board;

s. 56 - Assignment by the City, COA or OCOG is not allowed without the prior approval of the IOC Executive Board;

s. 57 - in the event of unforeseen or undue hardship, the OCOG must request the IOC Executive Board to consider reasonable changes in its obligation;

s. 58 - the parties to the Host City Agreement are not agents of each other, or part of a partnership, joint venture or other relationship;

s. 59 - Governing Law and Resolution of Disputes - Contract is governed by Swiss law and disputes shall be resolved by the Court of Arbitration for Sports in accordance with the Code of Sports

- related arbitration of the Court in Switzerland;

s. 60 - The Olympic Charter may be amended from time to time and regardless of amendment, shall prevail unless the OCOG proves that the changes have materially adversely affected the financial or other obligations of the OCOG under the Host City Contract;

s. 61 - in the event of a conflict between the Host City Contract and the Olympic Charter, the contract takes precedence;

s. 62 - all parties represent and warrant that the persons executing the Host City Contract are authorized to do so;

s. 63 - headings are for convenience only and do not affect the contents of the agreement;

s. 64 - appendices "A" to "K" form part of the contract;

III - Olympic Charter - Provisions respecting the Organization and Administration of the Olympic Games

Rule 36 - The duration of the competitions of the Games cannot exceed sixteen days.

Rule 37 - The organization of the Olympic Games will not be entrusted to a City unless it has submitted to the IOC a document signed by the federal government guaranteeing to the IOC that Canada will respect the Olympic Charter, as well as a similar undertaking on behalf of the City.

- Only a Canadian city approved by the COA can apply for the organization of the Olympic Games;

- Candidate cities must offer such financial guarantees as required by the IOC Executive Board and, such guarantees can be given by the City or any other level of government or other third parties.

- The Host City Agreement must be signed immediately upon the election of the Host City.

Rule 38 - The IOC must approve in writing requests to organize Olympic events outside of the Host City.

- The City, COA and OCOG shall ensure that no other important events conflict with the Olympic Games during the Games or during the preceding or following week without the consent of the IOC Executive Board;

Rule 39 - Membership on the Executive Board of the OCOG shall include the Canadian IOC members, the president and secretary general of the COA and members designated by the City.

The OCOG must abide by the Olympic Charter.

Rule 40 - The City, the COA and the OCOG are jointly and severally liable for all commitments entered into concerning the organization and staging of the Olympic Games excluding financial responsibility, which shall be assumed entirely by the City and the OCOG.

Rule 41 - To facilitate cooperation, the OCOG and COA may appoint attachés and a Coordination Commission must be established to ensure full communication with the IOC Executive Board.

Rule 42 - the OCOG must provide an Olympic village at least two weeks before the opening ceremonies and three days after the closing ceremony to specifications in the Olympic Village guide.

Rule 43 - duties of OCOG to provide facilities for the International Federations governing specific sports, at their request and their expense;

Rule 44 - OCOG must organize a cultural program satisfactory to the IOC Executive Board;

Rule 45 - Eligibility of competitors for the Olympic Games;

Rule 46 - Competitors must be a national of the country entering him or her ;

Rule 48 - the President of the IOC will appoint a Medical Commission to ensure the IOC Medical Code is carried out respecting doping, prohibited substances and methods, accredited laboratories, etc.

Rule 49 - entries of competitors are through their National Olympic Commissions;

Rule 50 - The IOC Executive Board can withdraw accreditation from any person who infringes the Olympic Charter;

Rule 51 - begins the sports program

Attachment No. 13:

A Community Perspective on Principles for a Toronto Olympics

In August 1998, the City invited hundreds of ratepayer, cultural, sporting, advocacy and special interest organizations to express their views on a Toronto Olympic bid. The community at large was also invited to comment, through information brochures distributed at civic and community centres throughout the City. This public consultation included 112 deputation's at six special meetings of Community Council, and six focus groups involving 180 people who represented a broad cross-section of interests and organized groups.

The result of all of this consultation was a series of seven guiding principles for the Olympic concept, below, and the supporting principles on the following pages, which deal with social equity, environment, venues, transportation, culture and finance.

The guiding principles state that the Olympics should:

Social Equity

Environment

Venues

Transportation

Culture

Finance