Item - 2014.ED28.4

This report provides a high level feasibility review of considerations with respect to the City of Toronto hosting the 2024 Summer Olympic Games.  As directed by Council, the issues examined in this report include the following:

·           procedures for selecting host cities;

·           competitive position of Toronto compared to other potential bid cities;

·           impact of past Council decisions and their bearing on any future bid;

·           potential revenue to the City as a result of hosting the Olympic Games;

·           potential number of jobs that would be created within the City as a result of hosting the Olympic Games;

·           City lands that may be useful in hosting this major international event;

·           potential legacy projects;

·           potential trade and investment opportunities;

·           land use, transportation and infrastructure issues;

·           an estimate of time, cost and resources required to prepare formal bid documents; and a

·           summary of pros, cons and risks involved in bidding for and hosting the Olympic Games.

As part of this review, Ernst & Young (EY) were commissioned to prepare the attached, Feasibility Study in Respect of Hosting the 2024 Olympic Summer Games, November 2013, (Appendix A).

The Summer Olympic Games are one of, if not the largest sporting and cultural event in the world.  Hosting the Olympic Games would provide a platform to reinforce and strengthen Toronto's global brand as a financial and cultural capital, a major centre for sports and one of the most multicultural cities in the world.

The Feasibility Study prepared by EY indicates that this increased visibility would provide opportunities to establish and strengthen business and cultural relationships and be a catalyst to drive job creation, trade development and investment attraction, and enhance opportunities to attract significant conventions and conferences as well as leisure tourism.  The global media attention would also reinforce Toronto's reputation as a major arts and culture hub both in Canada and around the world.  Hosting the Olympic Games also provides an opportunity for urban renewal and investment in infrastructure which contribute to economic growth and job creation.

However, there are also significant costs and risks associated with a bid to host an Olympic Games.  The next stage in pursuing a bid to host the 2024 Olympic Summer Games would be to undertake a more detailed Pre-Bid Phase analysis at an estimated cost for consultant services and staff about $1 million.  If Council then decided to submit a formal bid, the estimated cost to prepare the necessary supporting documents and promote the bid is in the range of $50 million to $60 million.  If Toronto's bid was successful, a high level estimate of the net cost to host the 2024 Olympic Summer Games based on the illustrative scenarios in the EY report is in the range of $3.3 billion to $6.9 billion.

In considering bids to host an Olympic Games, the International Olympic Committee (IOC) requires that the national or state/provincial government guarantee the necessary funding to present the Games at the initial application stage.  The Government of Canada has transferred this responsibility to the provinces.  The support of the Government of Ontario is also essential.  Both the federal and provincial governments require a detailed Business Plans to be submitted in order to consider providing support.

The IOC also looks for broad based public and corporate support.  In addition to financial support federal, provincial, corporate and public support would be critical to promoting Toronto's bid.

Time is of the essence.  Based on the current process, an application to host the 2024 Olympic Games must be submitted by the Canadian Olympic Committee to the International Olympic Committee by September 2015.   To meet this deadline the Pre-Bid processes would have to be initiated as soon as possible and completed for City Council's consideration in early 2015.   Meeting this timeline will be complicated by the prospect of all three orders of government having elections over the next two years and the running of the Pan/Para Pan Am Games in 2015.