New government funding proposal for Calgary Olympics could revive troubled 2026 bid: BidCo

Thestar.com
October 31, 2018
Madeline Smith

A last-minute funding deal reached between the provincial and federal governments may have pulled Calgary’s troubled Olympic 2026 bid back from the brink.

The Calgary Olympic Bid Corporation, known as BidCo, released a funding proposal signed by federal and provincial representatives late Tuesday.

A last minute funding proposal reached between the province, the federal government and the city late Tuesday may have revived Calgary’s troubled 2026 Olympics bid.

BidCo’s letter confirming the possible agreement says the proposal was discussed “late on the evening of Oct. 29” with the city, province and feds. It’s signed by federal sport minister Kirsty Duncan and Alberta Premier Rachel Notley, but Mayor Naheed Nenshi’s name is absent.

Notably, the total public cost estimate in the new funding proposal is $2.875 billion -- more than $100 million less than what BidCo previously said would be needed to host the Games. Previously, they reported the total cost estimate of the Games at $5.2 billion, with $3 billion coming from public funds.

BidCo spokesperson James Millar said the budget reduction came from “efficiencies” they found in security costs.

“When we came out with the draft hosting plan Sept. 11 there was a very generous figure in there for security,” he said.

The BidCo previously allocated $610 million for security costs.

“The RCMP came back last week and said they’ve been finding efficiencies in security. ... Some of those efficiencies also had to do with accommodation. If we weren’t bringing as many personnel for security we wouldn’t need to do as much of a build.”

According to the document sent to media, the proposal would see the Calgary contribute $370 million in cash plus $150 million in “preauthorized Victoria Park and Stampede access improvements.” The city would also contribute an “insurance redemption amount” of $200 million that “covers a defined contingency.”

The province would contribute $700 million -- keeping with their previously stated commitment -- and the federal government would match event costs incurred by the local hosts to the tune of $1.423 billion. All amounts are in 2018 dollars.

City council is still set to discuss the future of the Olympic bid on Wednesday. Ward 8 Councillor and Olympic and Paralympic Winter Games assessment committee chair Evan Woolley proposed several recommendations Tuesday that will end work on the bid if city councillors vote in favour Wednesday.

The first of Woolley’s eight recommendations requires a reconsideration of the council’s September decision to go to a plebiscite, which means at least 10 council members -- rather than a simple majority of eight out of 15 -- must vote to reconsider.

Ward 13 Councillor Diane Colley-Urquhart said that she plans to vote against the reconsideration. Ward 5 Councillor George Chahal, Ward 10 Councillor Ray Jones and Ward 12 Councillor Shane Keating also expressed support on Twitter for moving ahead to the plebiscite.

“If we have an agreed upon deal I believe Calgarians should be able to decide through the plebiscite,” Chahal said in a text message before BidCo announced the funding proposal.

Ward 9 Councillor Gian-Carlo Carra said late Tuesday he doesn’t think the reconsideration will get the 10 votes it needs to go ahead, and he’s “pleased” Calgarians will have a deal to consider in the vote.

“I’m hoping for a simple majority to take us to the plebiscite now.”

The lack of a confirmed funding agreement between the orders of government was the main sticking point for moving to kill the Olympic bid. Woolley said that Calgarians can’t be expected to make an informed decision in a vote less than two weeks away without more information about costs.

If the city’s bid continues, Calgarians will vote on whether they're in favour of hosting the 2026 Games in a Nov. 13 plebiscite.

“This is a proposal that makes sense and is a good deal for Calgarians. I’m confident we and our government partners can agree to move forward and reach an agreement in principle,” BidCo Board Chair Scott Hutcheson said in a statement.

“I know City Council understands how important this is to Calgary, that they know what’s at stake here, and that they will show their strong leadership and allow Calgarians to decide the outcome of the Olympic and Paralympic bid at a plebiscite November 13. These will be Canada’s Games, Calgary’s choice.”

BidCo is also hosting a rally for Olympic supporters on the steps of city hall Wednesday morning.