LOS ANGELES — The Los Angeles City Council voted unanimously Friday morning to authorize Mayor Eric Garcetti to sign a Host City Contract with the International Olympic Committee in which the city agrees to host the 2028 Olympic Games and guarantees that it will cover any potential financial shortfall from those Games.
The council also approved a memorandum of understanding between the city, local organizing committee Los Angeles 2028 and the U.S. Olympic Committee that gives the council a role in the planning of the 2028 Games and the city protection against an unexpected financial deficit. The council also signed off on a tripartite agreement between LA 2028, Paris 2024 and the IOC in which Paris agrees to host the 2024 Games.
Friday’s votes cleared the way for the IOC to award Los Angeles a third Olympic Games. All 95 IOC members have assured Los Angeles officials that the organization will unanimously approve Los Angeles as the 2028 host and award Paris the 2024 Games in a Sept. 13 vote in Lima, Peru, Garcetti and LA 2028 chairman Casey Wassserman said.
The IOC will award Paris the 2024 Games that same day.
The council vote comes less than two weeks after LA 2028 and the IOC reached a record-setting agreement for the city to host the 2028 Games.
Under the terms of the Host City Contract, LA 2028 will receive at least $2 billion from the IOC, up from $1.7 billion had the city been awarded the 2024 Games, and will also receive the IOC’s 20 percent share of the 2028 Games surplus. With the deal, LA 2028 will receive 80 percent of those Olympics’ surplus. LA 2028 initially projected a $166.1 million surplus in 2015 documents, an estimate considered conservative by several longtime Olympic bid analysts.
The IOC also agreed to provide LA 2028 a $180 million advance, to be paid out in 20 quarterly $9 million payments beginning Jan. 1, 2018. This marks the first time the IOC has provided a host city an advance. LA 2028 will use as much as $160 million to fund youth sports programs through Los Angeles Parks and Recreation starting next year.
The IOC also agreed to concessions that will result in $67 million in applied cost savings, and $39 million in in kind services.
But Friday’s vote also took place with a finalized budget for the 2028 Games still months away. LA 2028 expects to have a finalized budget in the first quarter of 2018, a LA 2028 official said. It could be 18 months before that budget is validated by the accounting firm KPMG in a…