City of Toronto  
HomeContact UsHow Do I...?Advanced search
Living in TorontoDoing businessVisiting TorontoAccessing City Hall
 
Accessing City Hall
Mayor
Councillors
Meeting Schedules
   
   
  City of Toronto Council and Committees
  All Council and Committee documents are available from the City of Toronto Clerk's office. Please e-mail clerk@city.toronto.on.ca.
   

 

February 9, 1998

 

To: Strategic Policies and Priorities Committee

 

From: Michael Garrett, Chief Administrative Officer

 

Subject: Toronto 2008 C The Olympic Bid

 

Purpose:

 

Seek Council=s endorsement in principle, of the application to be submitted by the 2008 Toronto Olympic Bid Corporation (BIDCO) to the Canadian Olympic Association (COA), to have the City of Toronto chosen as the Canadian Candidate.

 

Financial Implications:

 

There are no immediate financial impacts, other than staff resources with respect to proceeding with the bid to hosting the 2008 Olympic Games in Toronto as outlined in this report. The preparation of this bid will be fully funded from private sector contributions. A report detailing the full financial implications of hosting the Olympics will be presented to Council in the months to follow.

 

Recommendations:

 

It is recommended that:

 

(1) the City of Toronto endorse, in principle, the application to be submitted by BIDCO and City of Toronto representatives to the Canadian Olympic Association (COA), to have the City of Toronto chosen as the Canadian Candidate in the competition to host the 2008 Olympic Games, according to the principles and directions outlined in this report;

 

(2) authority be granted to City staff to negotiate an agreement between the City of Toronto, the COA and BIDCO to define the relationship, roles and responsibilities of each in bidding for the 2008 Olympic Games in Toronto. The form and content of this agreement will be subject to the approval of Toronto City Council;

 

(3) staff be authorized to participate in negotiations, community consultations and planning refinements to develop the Bid; that quarterly progress reports be submitted; and a full report on all the aspects of the Bid, including the financial and social implications, be submitted to Council for approval no later than June 1999; and,

 

(4) the appropriate City staff be authorized to take the necessary action to give effect thereto.

 

Comments:

 

The attached report provides an overview of the process and lay principles of the Toronto 2008 Olympic Bid.

 

Contact Name:

 

Joe Halstead

Functional Lead, Parks & Recreation

 

Telephone: (416) 395-6188

Fax: (416) 395-0105

e-mail: JAHALSTE@city.north-york.on.ca.

 

 

 

Michael Garrett

Chief Administrative Officer

 

CCCC

 

 

TORONTO 2008 - THE OLYMPIC BID

 

REPORT

 

A.Introduction

 

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.

 

Conceived by Baron Pierre de Coubertin, the Olympic Games were designed to promote Olympism as the guiding principle of the Olympic Movement.

 

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

The Olympic Charter

 

These words could come to life for Torontonians and for all Canadians, especially our youth, should Toronto be awarded the right to organize and host an inclusive 2008 Olympic Games guided by the principles of responsible management. That management would reflect the City=s social and economic priorities in such key areas as housing, social equity, environment, health and fitness, transportation, infrastructure, economic development and tourism.

 

B.Why Toronto?

 

I.Toronto's Attributes

 

Toronto=s reputation as a thriving urban centre is recognized internationally. Already, Toronto opens its doors regularly to thousands of participants in a wide variety of national and international sporting and cultural events. The City=s attributes are distinctive and compelling, making Toronto an ideal Olympic host:

 

  • At 2.3 million, it is Canada=s largest municipality.
  • One of the most multicultural cities in the world.
  • Canada=s financial and commercial hub.
  • A major world travel destination and transfer point.
  • A leading sports centre.

  • The foremost entertainment, communications and cultural centre.
  • High quality urban environment and transportation infrastructure.
  • Strong security record for hosting international events.

 

II.Opportunity & Timing

 

The opportunity to bid to host the Olympic Games only occurs realistically every 12 to 20 years. The privilege of hosting the Games, along with the accompanying multi-year Cultural Festival and the Paralympics, occurs once in an average lifetime.

 

Twelve years ago, Toronto City Council authorized a bid in its name to host the 1996 Games. That bid fell short but not before firmly establishing with the International Olympic Committee (IOC) the city's impressive credentials as a potential host. That fact, added to the lessons learned from the experience and the likelihood of being the only North American candidate, provide a solid base on which to mount an even better Toronto bid to host the 2008 Olympic Games.

 

Given its international reputation, Toronto is poised to be a leading 2008 contender. Toronto could well be the strongest 2008 contender. At present, Beijing or Shanghai, Buenos Aires, Istanbul and Cape Town are being touted as possible competitors.

 

C. The Financial Plan

 

At this early stage of the planning process, it is difficult to predict the extent of operating revenues and expenses associated with the staging of the 2008 Olympics with a high degree of certainty. Certain operating revenues and expenses can and will vary over the next decade.

 

The following financial principles have been adopted in compiling the preliminary budget estimates for the 2008 Olympic Games:

 

    • No load on the municipal tax base.
    • Minimize new capital expenditures while emphasizing upgrading of existing facilities;
    • Newly constructed facilities, including housing, communications and athletic buildings, should have significant residual commercial or social value;
    • Revenue-generating programs for the 2008 Olympic Games should allow for the maximum level of corporate contributions;

    • Maximize other private-sector revenues including:
    • Broadcast rights, ticket revenues, and corporate sponsorship
    • Licencing, official sponsorship and supplier programs
    • Maximize opportunities for public/private partnerships for capital construction and operating costs in the post Olympic period.

 

A preliminary financial plan has been developed based upon the foregoing principles and the actual financial results of the 1996 Games in Atlanta, the details of which are provided in Appendix 5.

 

D.Impacts & Legacies

 

I.Economic Impacts

 

The activity associated with preparing for and hosting the Olympics Games will have a major impact on the Toronto and Ontario economy during the years leading up to 2008 and for several years afterwards.

 

The financial data outlined in Appendix 5, and information from past Olympic Games, suggests:

 

    • A $2.7 billion impact from planning and construction activity, from the operation of the Olympics and the visitors who come to Ontario for the Games.
    • 30,000 person years of employment in the 3 to 5 years leading up to and through the Games.
    • 20,000 jobs associated with the Olympic Games predominately in the tourist, entertainment, retail and restaurant sectors.
    • An additional $3.3 billion in the Ontario economy by Ainduced and indirect@ activities associated with the Olympics, creating another 60,000 person years of employment.

 

The total economic benefits associated with hosting the Olympics is estimated to a $6 billion infusion into the Ontario economy and about 90,000 person years of employment between 1998 and 2008.

 

II.Legacies

 

A defining value of Toronto=s bid is the City=s readiness to include residents, the corporate sector and community agencies in the planning process. Furthermore, the City would consider a number of measures to maximize the benefits of the Olympics to the community, while minimizing negative impacts. Among the social benefits to hosting the possible Olympics are:

 

  • Increased additional affordable, mixed-housing.
  • Upgraded existing and new, community recreational facilities throughout the City.
  • Improved public transit.
  • Significant job opportunities, particularly for youth.
  •  

    The Games should also promote:

     

  • Enhanced fitness awareness promoting wellness lifestyles across the whole community resulting in significant savings in health care.
  • Multiculturalism, artistic recognition and opportunities, and public participation, through the Cultural Festival.
  • Increased collaboration among all groups in our society, reinforcing the city=s multicultural character and engendering a greater spirit of volunteerism.
  •  

    Given the experience of previous Olympic hosts, Toronto=s commitment to an open and inclusive process will maximize the City=s opportunity to capitalize on the potential benefits of the Games.

     

    E.Current Status of the Bid

     

    In May of 1996 David Crombie filed a letter with the COA expressing interest in having the 2008 Olympic Games hosted in the Toronto area. Since then a core group of individuals working with Mr. Crombie (referred to in this report as BIDCO) have initiated and led the development of the bid proposal.

     

    Numerous volunteers including communities and corporate participants have joined the early bid development. A number of individual groups and stakeholders have been consulted in developing the proposal thus far. The response from those consulted has been positive. These consultations and discussions will be broadened.

     

    To date the proposal has been developed through the informal co-operation of many groups and individuals, brought together by their interest in and dedication to the idea of bring the 2008 Olympic Games to Toronto, and responding Mr. Crombie=s initiative.

     

    Included in these groups are more than 30 provincial and national sports organizations with whom BIDCO has worked in close co-operation to develop a strong technical proposal. The Site Review Committee (SRC) of the COA reviewed this proposal in November 1997 and reported favourably.

     

    If the City of Toronto is chosen as the Canadian Candidate in the competition to host the 2008 Olympic Games, then an agreement will have to be negotiated between the City of Toronto, the COA and BIDCO to incorporate a not-for-profit company whose objectives will include the funding, preparation, organization and presentation of the bid to host the 2008 Olympic Games. In discussions with representatives from Mr. Crombie=s office it appears that, in November 1996 such a corporation was created, but has not been active. Recent legal advice indicates that it will be preferable to incorporate a new company with appropriate membership, directors, officers, etc. as agreed upon between the relevant parties.

     

    The proposal, as developed to date by BIDCO, will be presented to the COA by representatives of the City of Toronto and BIDCO.

     

    F.The City of Toronto Staff Olympic Work Group

     

    The City of Toronto Staff Olympic Work Group has recently begun to consider all aspects of BIDCO=s proposal and its implications for the City. The Work Group includes representatives from Parks & Recreation, Finance, Planning, Social Development, Housing, Legal, Economic Development and Culture. The Work Group membership will be augmented to include representatives from other departments as needed.

     

    G.Where would the Games be staged?

     

    BIDCO has concluded that the key to a successful bid is a compact, waterfront-centred location for both the sports venues and the Olympic village and media accommodation. Existing venues such as the Metro Toronto Convention Centre, the National Trade Centre, the Air Canada Centre, and SkyDome would be used where possible. The draft Bid book, prepared by BIDCO, proposes that most of the new sports venues required, including the 80,000 seat stadium for the opening and closing ceremonies and track and field events, a new velodrome and aquatic centre, would be located at Exhibition Place. Further, the Bid book shows the location for 15,000 person Olympic Village in the Port Industrial area and the 5,000 person media village in the Garrison Common north area, north of the mainline rail tracks, west of Strachan Avenue. The attached map shows the proposed locations of these facilities. (See Appendix 7)

     

    H. Next Steps

     

    February 24, 1998 Draft Report on 2008 Olympic Bid is submitted to Strategic Policies & Priorities Committee for review and consideration.

     

    March 4, 1998 Council considers/endorses request to approve, in principle, the City of Toronto 2008 Olympic Bid.

     

    March 17, 1998 City of Toronto informs the Canadian Olympic Association (COA) of its approval in principle, to host the 2008 Olympics.

     

    April 17 - 19, 1998 City and BIDCO make presentation to the COA in Calgary at COA Annual General Meeting.

     

    Council=s representation in this process will need to be identified and formalized.

    I. Critical Dates

     

    May 1998 - Nov. 1999 Final Bid book preparation, staff analysis, community consultation and input, additional planning.

     

    December 1999 City and BIDCO make formal Bid presentation to IOC.

     

    Spring of 2001 IOC announces its shortlist of four candidate cities.

     

    Fall of 2001 IOC announces the winning city at its Annual Congress in Moscow.

     

    J. Recommendations

     

    It is recommended that:

     

    (1) the City of Toronto endorse, in principle, the application to be submitted by BIDCO and City of Toronto representatives to the Canadian Olympic Association (COA), to have the City of Toronto chosen as the Canadian Candidate in the competition to host the 2008 Olympic Games, according to the principles and directions outlined in this report;

     

    (2) authority be granted to City staff to negotiate an agreement between the City of Toronto, the COA and BIDCO to define the relationship, roles and responsibilities of each in bidding for the 2008 Olympic Games in Toronto. The form and content of this agreement will be subject to the approval of Toronto City Council;

     

    (3) staff be authorized to participate in negotiations, community consultations and planning refinements to develop the Bid; that quarterly progress reports be submitted; and a full report on all the aspects of the Bid, including the financial and social implications, be submitted to Council for approval no later than June 1999; and,

     

    (4) the appropriate City staff be authorized to take the necessary action to give effect thereto.

    K. Conclusion

     

    For most athletes as for cities, the Olympic Games are a once in a lifetime opportunity. It represents the culmination of years of practice and effort. It is the highest expression of readiness.

     

    Only a few can compete but where there is the talent, the ability, and the drive it would be a terrible failure not to try. The object is to win; the success is in the trying to one=s ultimate.

     

    Toronto is now ready as it has never been. The Olympics can serve as a positive focal point in the creation of the new Toronto. The values of the Olympic movement are the same as those we have espoused and shared with the world. They are the values which have made us a world leader in the quality of life offered to our citizens.

     

    The Olympics and its strong values will serve to guide the City as it plans, builds, and delivers this wonderful sporting event based on friendship and equality of all people. It will provide an unprecedented opportunity to accelerate the creation of infrastructure as well as to stage an arts and cultural festival further building and binding our communities.

     

    The next ten years will not be without challenges. The benefits are, however, very large. In the short term; thousands of jobs will be created, youth will receive training and work experience, individuals and communities will be involved, the social environment will be enhanced and over 2.5 billion dollars will be brought into the economy. In the long term; the City will be left with the legacy of new facilities and infrastructure, there will be increased national and international recognition, and business will benefit from the worldwide exposure.

     

     

    APPENDIX 1: BACKGROUND

     

     

    A. Toronto=s ability to host the Games

     

    The responsibility of hosting the Games is, without question, enormous. However, the potential opportunities and benefits derived from staging the Games are unparalled. As a result, competition among the great cities of the world to host the Games is intense. The City of Toronto is among this group and is recognized within the Olympic community as a potentially successful Olympic city.

     

    Canada has demonstrated its ability to host the Olympics through the operationally successful 1976 Olympics in Montreal and the 1988 Winter Games in Calgary. Following in these great Olympic traditions, and with the goal of strengthening the Olympic Movement in this country and throughout the world, Toronto is well positioned to return the Games to Canada.

     

    The 1996 Toronto Bid by the Toronto Ontario Olympic Council, which saw Toronto finish third in voting, firmly established Toronto as an Olympic city with a wide range of support within the International Olympic Committee (IOC).

     

    As the home of major league sports teams, and the host of many international sporting championships, Toronto has proven its ability over many years to support and organize the largest of sporting events.

     

    A significant number of the required venues are already in place in Toronto and capable of hosting the Olympic sporting events. In addition, Toronto has abundant accommodation for visitors with more than 30,000 hotel rooms and an excellent transportation system. Our comprehensive communications infrastructure exceeds the requirements needed to bring the Games to the rest of the world.

     

    Beyond the city=s capability to meet the IOC=s technical requirements is the depth and strength of Toronto=s cultural and ethnic diversity. Toronto is home to more than 500 ethnic or multicultural organizations representing over 80 nationalities.

     

    Toronto is noted for its cultural activity. It is Canada=s leading entertainment and cultural centre, with the country=s largest concentration of artists, arts organizations and arts-related industries.

     

    As Canada=s largest city and financial/commercial capital, Toronto=s private sector has strength to support the Games.

     

    Toronto is highly accessible by all means of travel from any where in the world. As host to numerous international conventions and special events year-round, the City is accustomed to hosting the world. In 1996, more than 2 million tourists and convention participants were welcomed to Toronto.

     

    B. Other factors to Toronto=s advantage

     

    A number of outside influences could impact favourably on a Toronto bid:

     

      • Sydney, Australia is hosting the 2000 Games followed by Athens, Greece in 2004. As such, it may be time to return to North America for 2008. The United States Olympic Committee has decided not to compete for the 2008 Games, leaving Toronto as the sole North American contender.

     

      • Returning the Games of 2008 to the Eastern Time Zone and its large market, holds strong appeal to both the IOC and its biggest television partner, NBC.

      • Thus far, Buenos Aires is the only other city in the Eastern time zone to express an interest to bid for 2008.

     

    C.The scope of the 2008 Olympics in Toronto

     

    The size and magnitude of an Olympic Games in Toronto in 2008 is significant:

     

      • 19 days of sports and cultural celebrations between July and August 2008.
      • 15,000+ athletes and coaches from 197 countries.
      • 500,000 visitors over a 3 week period.
      • 15,000 media personnel from 200 countries.
      • 45,000 volunteers required.
      • a 4-year, city-wide cultural festival culminating at the Opening Ceremonies.
      • 20,000 jobs created during the Olympics.

     

    APPENDIX 2: STAGING THE GAMES

     

     

    A.The Toronto waterfront concept

     

    BIDCO's technical team, comprised of representatives of the construction, architectural, engineering, sports and community sectors, identified three concepts for the location of Olympic venues and facilities:

     

      • A GTA-wide concept;
      • York University/Downsview; and,
      • The Toronto waterfront.

     

    In August 1997, the COA=s Site Review Committee (SRC) reviewed the three Olympic possibilities and recommended that BIDCO develop the waterfront concept more fully. The reasons:

     

      • The IOC favours bids that cluster venues and facilities within 2-5 km of the Olympic Village.
      • Toronto=s waterfront is already known by the IOC as an attractive and appealing Olympic Games centerpiece. As such, its adoption would enhance the bid much more than the other options.

     

    Consequently, the waterfront Olympic concept will form the basis of the presentation to the COA Board in April 1998. Additional recreational and sports venues would have to be located throughout Toronto and the GTA to meet the training and preliminary events of the Olympic athletes. This would require upgrades to existing and/or the construction of new facilities.

     

    This plan could facilitate the integration of the waterfront into the fabric of the City. Toronto residents and tourists could live, work and participate in a growing number of sporting and cultural activities that are so much a part of the waterfront.

     

    Within the past five years the City, in cooperation with the Provincial and Federal governments, has supported significant developments near Lake Ontario which contribute to the waterfront=s importance to Toronto. The waterfront component of the 1996 Bid was one of its most attractive features. That feature has been significantly enhanced in the current bid by the development which has taken place since that time.

     

      • Metropolitan Toronto Convention Centre expansion and new 15-acre park
      • National Trade Centre at Exhibition Place.
      • Air Canada Centre (new 22,000 seat arena now under construction).
      • Imminent development of the Railway Lands to the west of Skydome, primarily for housing.
      • Residential development in the King/Spadina and King/Parliament areas
      • York Street Gateway.
      • Upgrading the Martin Goodman Trail and integration with the Lake Ontario Greenway.
      • Transfer of 40 acres of waterfront parkland from the Federal Government to the City of Toronto.

     

    In addition, many proposals are approved or under consideration:

     

      • Up to 2,000 new residential units under construction in Harbourfront by late 1998.
      • Front Street extension (Environmental Assessment approved).
      • CN Tower expansion.
      • Toronto Bay Initiative (cleaning up the waters of the Inner Harbour).
      • Toronto Port greening and revitalization.
      • Fixed link to the Toronto City Centre Airport
      • Development of the recently transferred 40 acres of waterfront parkland.
      • Waterfront transit extension west and east.
      • Planned dismantling of the eastern portion of the Gardiner Expressway;

    proposed dismantling and realignment of the central portion of the Gardner Expressway.

     

    Collectively, these initiatives represent a significant investment in the quality of life of Toronto=s waterfront. It must be noted that these initiatives are not dependent on the Olympics, nor are the Games contingent on them; however, the Games could provide the catalyst for new partnerships to accelerate their implementation.

     

    B. Infrastructure

     

    New physical infrastructure is often an important component of an Olympic bid. There is an opportunity to create a single timetable for a number of significant infrastructure improvements which have been considered by the City . City-wide and waterfront infrastructure initiatives have already been mentioned above.

     

    These improvements are desirable and could help to make the City=s bid for the 2008 Olympics a successful one. However, the costs of all of these infrastructure elements would be in the billions of dollars. This cannot be paid for out of the budget for the Olympics, and would require support from senior levels of government and the private sector.

     

    The true test for assessing these infrastructure improvements should be their contribution to the economic health and improved quality of life for the City.

     

    They should make sense and stand on their own merits, regardless of the success of Toronto=s Olympic bid.

     

    Staff should begin analysing the transportation requirements for the 2008 Olympics, to separate the infrastructure required for a successful Olympic bid from that which is needed in the long term to support other downtown and waterfront development.

     

    C. Environment

     

    As with proposed infrastructure, the Olympics provide an opportunity to take a number of previously proposed environmental initiatives and implement them in a single time frame.

     

    Current environmental initiatives in the City and the Waterfront include cleaning up the waters of the Inner Harbour, restoration of the Don River, the Garrison Creek linkage project, and the greening and revitalization of the Toronto port.

     

    Significant environmental legacies would be derived from the Games in proportion to their likely impact on fulfilment of these initiatives.

     

    D.Venues

     

    The draft Bid book proposes a number of existing waterfront facilities be used as venues for Olympic events. The Bid book also proposes that a new Olympic Stadium, aquatics centre and velodrome and be located at Exhibition Place/Ontario Place. The construction of these new sport venues provides the opportunity for a legacy of sports facilities at the waterfront, and revitalizes the Exhibition Place/Ontario Place area as a year-round destination.

     

    These proposed venues must be considered in the context of a master plan for revitalizing the area C the location of open space, the preservation of heritage buildings and the compatibility with the Toronto Maple Leaf=s proposal.

     

    Over the coming months, staff should consult with the Board of Governors of Exhibition Place, Heritage Toronto, Maple Leaf Gardens Ltd. and the public to ensure that the Olympic venues are accommodated while taking into account City concerns and issues.

     

    E.Olympic Villages

     

    The draft Bid book proposes that the Olympic Village also known as the Athletes= Village be located in the Port area west of Cherry Street, and the media accommodation be located in Garrison Common North. Additional housing would be provided for up to 1,000 Games= officials and is proposed in the Railway Lands West as required. This would result in approximately 4,000 new housing units.

     

    All three locations are on former industrial lands. The introduction of new neighbourhoods on a comprehensive basis, such as the Olympic Bid proposes, provides the opportunity to create mixed income residential neighbourhoods with all the appropriate community facilities in place at the start. For years, politicians, planners, landowners, and potential developers have speculated on creating a residential neighbourhood in the Port area. Views to the downtown and the islands from the lands west of Cherry Street are spectacular. Given the proximity to the downtown, other residential neighbourhoods, and the advantage of a lake or City view, the residential potential in this area is compelling.

     

    As with Harbourfront, the Railway Lands, Bathurst/Strachan and other former industrial areas, it is not easy to convert large Abrown fields@ to new residential neighbourhoods especially when there are active industrial and commercial landowners and tenants in the area.

     

    Residential development in East Bayfront or the Port Industrial area is only feasible on a scale that could financially justify a full range of services and amenities that would be required by the new residents. Introducing residential uses into the area would also require revisions to the City=s industrial strategy, which would show how industries in the Port area could coexist with an emerging residential neighbourhood. This initiative would involve extensive discussions with the stakeholders in the area.

    Over the coming months, staff should commence these discussions, as well as the necessary land use, design, and transportation studies, to determine the feasibility of an Olympic Village in the Port area and its impact on the surrounding industrial land.

     

    APPENDIX 3: THE CULTURAL COMPONENT

     

    An integral part of the bid is an Olympic Arts and Cultural Festival for the period 2004 to 2008. The cultural component provides the opportunity to showcase Canadian culture to a world-wide audience, while presenting international artists for the benefit of local residents. Given the increasing importance of arts and cultural industries to the City=s economy, this festival would provide artists and companies with an unrivaled opportunity to develop and enhance existing culture and heritage attractions.

     

    The development of a cultural component for the Games would draw upon Toronto=s growing reputation as an international cultural centre and its experience hosting major cultural events such as the Toronto International Film Festival and the International Festival of Authors. Toronto has an existing network of superb cultural facilities on or near the waterfront, such as Ontario Place, Roy Thomson Hall, the St. Lawrence and Hummingbird Centres, Harbourfront Centre, the Design Exchange, The Pier Project and Fort York, and others.

     

    The cultural festival must find the right balance of local and international programming. It must also complement or enhance existing cultural programming and festivals, without diverting resources and public attention. A strong coalition of public, not-for-profit and commercial arts and entertainment organizations will help BIDCO develop the cultural component of the bid. The coalition should draw upon the large number of Toronto-based cultural enterprises with global contracts and experience.

     

    APPENDIX 4: ECONOMIC BENEFITS

     

     

    The activity associated with preparing for and hosting the Olympics Games would have a major impact on the Toronto and Ontario economy in the years leading up to 2008 and for several years afterwards. The financial data outlined in the report and information on past Olympics suggests that the associated planning and construction activity, the operation of the Games, and the possible visitors to Ontario for the Games would inject about $2.7 billion into the Ontario economy. The equivalent of about 30,000 person years of employment would be created. During 2008, it might be expected that 20,000 people would find employment associated with the Olympics Games. Many of these people would be young adults employed at the Games and in the tourist, entertainment, retail and restaurant sectors.

     

    It is estimated that Ainduced and indirect@ activities associated with the Olympics would generate an additional $3.3 billion to the Ontario economy. There would be two major sources of indirect and induced expenditures:

     

    (A) Tourists would decide to visit Toronto during the months preceding and after the Olympics because of the positive publicity the City receives from being an Olympic host. The positive impact of Ainduced tourism@ has been documented in other cities, and it is reasonable to expect that a significant increase in tourist visits and expenditures also would be experienced in Toronto; and

     

    (B) The money injected into the economy by Olympics-related activities would in turn stimulate increased expenditures throughout Ontario as businesses and employees increase production and spend the additional money they earn.

     

    The $3.3 billion induced and indirect expenditures would create about another 60,000 person years of employment. Thus, the total economic benefits associated with hosting the Olympics is estimated at $6 billion infusion with 90,000 person years of employment between 1998 and 2008. These figures do not factor the impact of infrastructure improvements which are still to be planned.

     

    It is not possible yet to estimate the additional tax revenue likely to be generated. Clearly many millions of additional income and sales tax revenue would be produced for the provincial and federal governments. Municipal property tax assessment bases may also be increased by new development and enhanced property values.

     

    The positive publicity and greater name recognition associated with being an Olympics host has increased the attractiveness of many cities as a tourist destination, and has made them more competitive in drawing future special and sporting events, conventions, new business locations and investment.

     

    Local businesses also have been shown to benefit by their increased exposure to Olympics-based contracts and by export opportunities for many years following the Games.

     

    These more sustained benefits are more difficult to isolate and quantify than the short-term expenditures directly associated with the Games. However they are nonetheless real, and may in fact significantly exceed the direct benefits.

     

    APPENDIX 5: THE FINANCIAL PLAN

     

    A.Overview

     

    At this early stage in the planning process, it is difficult to conclusively forecast the financial implications of staging the 2008 Olympics.

     

    Factors such as inflation, interest and foreign exchange rates can and will vary over the next decade. These, in turn, will impact the operating revenues and expenses now broadly projected.

     

    Moreover, at this point and time, a variety of details which have consequential financial implications have yet to be finalized. Among them, the exact plans for venues, Athletes= Village and media accommodation locations and detailed infrastructure requirements needed to accommodate the staging of the Games.

     

    With these qualifications and cautions in mind, staff of the City=s Finance Department and BIDCO in consultation with KPMG have prepared preliminary budget estimates for staging the 2008 Olympics. The estimates are summarized in the following chart and described in more detail in the rest of this section. The financial results of the 1996 Atlanta Olympic Games, as at September 30, 1997, are included for comparison purposes.

  • Preliminary Budget Estimates
  • Preliminary Revenue and Cost Estimates

       

    Comparison with Atlanta Actuals

         

    (expressed in millions of 1998 Canadian dollars)

       
           
           
     

    Forecast

    Forecast

    Atlanta

    Program

    Conservative

    Optimistic

    Actuals

     

    Revenues

     

     

     

     

     

     

    Admission Tickets

    656

    676

    616

    Broadcast Rights

    913

    931

    818

    Corporate Sponsorship

    468

    540

    636

    Licensing

    100

    106

    133

    Other Revenues

    210

    224

    280

     

    Total Revenues

     

    2,347

     

    2,477

     

    2,484

           

    Costs

         

    Net Capital Costs

    515

    515

    735

    Administration

    209

    199

    199

    Sports Venues

    193

    184

    184

    Olympic Village

    150

    143

    143

    MPC & IBC

    253

    241

    241

    Ceremonies and Programmes

    196

    187

    187

    Catering, Olympic Family

    88

    84

    84

    Transportation

    85

    81

    81

    Security

    53

    50

    50

    Advertising and Promotion

    55

    52

    52

    Technology

    271

    258

    258

    Other

    86

    82

    82

    Avoidable and Extraordinary Costs

    168

    160

    160

     

    Total Costs

     

    2,322

     

    2,236

     

    2,456

           

     

    Net Revenue (Deficit)

     

    25

     

    241

     

    29

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    C.Major Sources of Revenue

     

    All revenue estimates in the chart and following pages have been adjusted to reflect present value 1998 Canadian dollars.

     

    I.Admission Tickets - $656 million

     

    The admission revenues are based on sold-out capacities for the opening and closing ceremonies and 60 percent paid attendance at all sports events. The Atlanta Games sold 71 percent of its ticket inventory. To allow for low income families to attend as spectators, lower percentages were used. The ticketing plan would include measures to ensure that citizens of all income levels are able to attend events. Budgeted admission revenues represent 95 percent of the total admission revenues as 5 percent is paid to the IOC.

     

     

    II. Broadcast Rights - $913 million

     

    The estimates for broadcast revenues are based on the signed contracts with NBC (U.S.), EBU (Europe), OTI (Latin America), and broadcasters in Japan and Australia. Revenue from these contractual commitments represents 93% of the projected total broadcast revenues. The balance is projected from other broadcast organizations that have yet to enter into agreements with the IOC.

     

    Broadcast revenues shown in the preceding chart represent the Organizing Committee=s 49% share of the worldwide broadcasting rights received from the IOC. Contractual arrangements with the IOC will provide for a payment stream of broadcast revenues commencing as early as four years prior to the Opening Ceremonies. Revenue payment streams have been discounted to appropriately reflect 1998 dollars.

     

    III.Corporate Sponsorship - $468 million

     

    Projections for corporate sponsorship revenue are based upon (i) The Olympic Programme (TOP) - a worldwide sponsor program coordinated by the IOC and (ii) local corporate sponsorship. The Organizing Committee share of revenues from TOP are conservatively estimated at US$125 million (CDN$180 million) and are based upon actual revenues received from the Atlanta Olympic Games and estimates from the Sydney 2000 and Athens 2004 Olympic Budgets.

     

    A further US$200 million (CDN$288 million), net of COA participation (est. CDN$70 million) is projected through local sponsorship. This projection is conservative relative to Atlanta=s local sponsorship program which generated US$360 million (CDN$518 million) and Sydney=s actual commitments to date of US$450 million (CDN$648 million).

     

    IV.Licensing and Other Revenues - $310 million

     

    Licensing and other revenues are strictly based upon Atlanta actuals. This is a conservative estimate, projecting only 75% of the actual revenues generated from these sources.

    Other revenues include merchandising, disposal of assets, coin program, interest income, Media Rate Card, parking and a variety of other promotional programs.

    D.Costs

     

    I.Capital Costs

     

    Preliminary estimates for temporary and permanent facility construction costs have been prepared by PCL Constructors Canada Inc. Total capital costs are estimated at $448.3 million and do not include construction costs for the Olympic Village and media accommodations.

     

    These facilities will have significant residual value in the post-Olympic period. It is therefore not unreasonable to expect a substantial recovery of their capital costs. In that regard, we are currently exploring a number of opportunities for joint funding and capital cost recovery.

     

    Four new facilities would have to be built - the aquatics centre, the velodrome, a beach volleyball complex and the Olympic Stadium - at a total estimated cost of $141.3 million. Another estimated $307 million would be required for the purposes of upgrading existing property and facilities. These include an Olympic Plaza, a field hockey complex and upgrades to other facilities.

     

    15% has been added to the PCL=s estimates to cover such items as engineering and design, furniture, fixtures and equipment, landscaping and contingencies.

     

    II.Operating Costs

     

    In developing the preliminary operating cost estimates, BIDCO also reviewed the proposed operating budgets of the 2004 bid cities. The Sydney 2000 approved budget, dated May 21, 1997, was also reviewed in detail. After some deliberation, it was determined that the most appropriate and meaningful basis for estimating operating costs involved using actual data from the Atlanta Games. In the interest of conservatism, these costs were inflated by 5 percent.

     

    III.Public Infrastructure

     

    For the purpose of this report, Ainfrastructure@ refers to those public utilities and transportation facilities, within the City and the GTA, which may be impacted by the Olympic Games. It does not include infrastructure which is so site-specific to an Olympic venue that it would be included in the capital costs of the venue itself.

     

    There may be a temptation to load on a wish list of infrastructure improvements that are needed or desired to stage the Olympics. A growing list of potential improvements include:

     

      • Waterfront transit extensions east and west.
      • Gardiner Expressway take down through the central part of the City.
      • Front Street extension.
      • Transit link to Pearson Airport.

     

    Many of these improvements are desirable and may increase the chances of a successful bid. However, the costs of these and other infrastructure elements would be in the billions of dollars and could not be reasonably funded from the Olympic budget. The City, with its own budget pressures, has limited capacity to absorb the funding of these improvements and would have to look for partnerships with the senior levels of government and the private sector.

     

    APPENDIX 6: SOCIAL BENEFITS

     

     

    Hosting an event the scale of the Olympics will create significant social opportunities and challenges for the community and all levels of the government. Maximizing these opportunities and meeting these challenges would require a wide-reaching community consultation process; a full inventory of possible impacts; an analysis of the impacts of previous Olympics; and a strong commitment to a program of social benefits for all members of the community.

     

    Initial indications suggest that the social benefits of hosting the Games could include increasing housing supply, creation of a new mixed-income neighbourhood, construction of new sports venues, upgrading of existing community recreation facilities, transportation improvements, environmental improvements to the waterfront, introduction of environmentally friendly practices, and many new job opportunities. Other significant social benefits would come from involving the community in organizing the Games, and the resulting community pride in hosting the world.

     

    The Games should also develop an enhanced fitness awareness resulting in significant savings in health care while the Cultural Festival will promote multiculturalism, artistic recognition, and public participation. The demands of hosting the Games should promote increased co-operation among all groups in our society, reinforcing the city=s multicultural character and engendering a greater spirit of volunteerism.

     

    To successfully host the Games, it would be necessary to approach the social challenges with the same level of creativity and energy as the Olympics themselves. Residents, businesses and community groups should be involved in the planning long before, during and after the Games. Based on the experiences of the cities, it would be necessary to implement mitigating measures to reduce and eliminate undesired impacts. Some examples include measures to prevent negative market impacts on tenants and rental housing supply; implementing operational planning and security procedures which are sensitive to the needs of the homeless and waste disposal planning which includes aggressive recycling programs.

     

       
    Please note that council and committee documents are provided electronically for information only and do not retain the exact structure of the original versions. For example, charts, images and tables may be difficult to read. As such, readers should verify information before acting on it. All council documents are available from the City Clerk's office. Please e-mail clerk@city.toronto.on.ca.

     

    City maps | Get involved | Toronto links
    © City of Toronto 1998-2001