You will pay more for the Olympics

Vancouver city council has released a report detailing plans to use the ‘Olympic Legacy Reserve Fund‘ to cover extra costs related to hosting the winter games. Words like ‘legacy’ are often used to indicate something long-term and ‘reserve’ sure sounds like it would be something extra set aside for a rainy day.

But opponents say that far from providing long-term legacies, as its name implies, the fund amounts to an Olympic operations budget.

Among the items it covers are a $1.4-million communications campaign, $1 million for the city’s host pavilion, $2 million for hosting dignitaries and $2 million for the “look” of the city during the Olympics.

The $20 million is a significant amount in a city budget where $5 million represents a one-per-cent tax increase.

But there we are, all the extra costs from hosting the games are accounted for.. If you happen to believe that, I have a wonderful second-hand bridge that I can sell to you for a tremendous bargain.

On a related note I found this article on Forbes about the ‘winners curse‘ that many host cities experience – the one exception being the 1984 LA summer games which actually turned a tidy profit since they had most of their infrastructure already in place and didn’t require a lot of extra construction:

“When multiple cities bid, each has a different view of what the revenues will be, and the one with the brightest economic forecast usually wins,” says Evan Osborne, an economist at Wright State University. But often, tourism revenue, job creation and ticket sales don’t pan out as expected, leaving local taxpayers with what Osborne calls “The Winner’s Curse.”

Former Salt Lake City Deputy Mayor Brian Hatch, a key player in securing that city’s winning bid for the 2002 Winter Games, recalled showing some Beijing officials around that year to help them prep for their city’s hosting role in 2008. They found hotel rooms at nonevent ski resorts easy to come by.

“People tend to avoid Olympic cities the year of the event, thinking it will be too crowded,” Hatch says.

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misanthropic curmudg
misanthropic curmudg
12 years ago

btw way loved the "o" logo treatmentkeep it handy….

misanthropic curmudg
misanthropic curmudg
12 years ago

m. randalbard love your rant, just never read them.there's a font style called "psycho"you should check it out, looks like crayon, then your rant will really shine!

Scullboy
Scullboy
12 years ago

Jade honey,It means you need to get yourself a nice big bucket o'popcorn and some lovely Junior Mints. The show is aboutto begin because The!Party!Is!Over!

Jade East
Jade East
12 years ago

I'm confused I saw that the front page of the Sun had pictures with the arrows of housing prices pointing the wrong way. It also seem that they had a symbol I couldn't understand it had something like a horizontal line in front of the growth percent. I think it looked like this."-"What does that mean?

Drachen
Drachen
12 years ago

Yep scullboy, it's unfolding here exactly like it did everywhere else. I think Mohican's analysis is bang on, 16-24 months after the peak of price gains (June '06) will be when we see the first YOY falls in GVRD. It's all downhill from there.Thumbsup it's time to BUY BUY BUY! Make sure you're leveraged to the hilt buddy!

Scullboy
Scullboy
12 years ago

In another and, I'm sure COMPLETELY UNRELATED article….one of the headlines I passed this morning said homes in the Fraser Valley are at the lowest prices in 8 months.Whoever called the bubble as bursting in the burbs first, KUDOS.Strap in, Thumbsup… it's gonna be a bumpy ride 🙂

Anonymous
Anonymous
12 years ago

In the Vancouver sun they had a story today about Olympic costs and tax hikes: "Vancouver residents should brace for a hefty tax hike — or a hefty cut in services.And they have the 2010 Games to blame.A pre-budget staff report heading for city council next week says preparations for the Olympics, including planning, engineering and emergency workers, will take more staff — $2.5 million worth."

Tony Danza
Tony Danza
12 years ago

"well said patriotz every single word is 100% correct."ThumbsSuck? You feeling OK? I can actually understand your post…

Clarke
Clarke
12 years ago

I remember when it was announced that we got the games. Horns honked and people started cheering. I just kept wondering about how much public money and how many years it would take to pay this off.I think it was the Georgia Straight that had a pretty good article on a lot the machinations behind the whole thing.

Clarke
Clarke
12 years ago

"….people so damned stupid that they have no clue of what the last 4,000 years of economics and gold says about why they should be buying gold with both hands with every penny at their disposal, and selling the kids into slave labor to get a few extra bucks with which to buy gold,…."And the raving maniac award goes to……….

jesse
jesse
12 years ago

"Gold is not an investment, period. It's a commodity"But it's sooo shiny. I like shiny. It doesn't taste very good tho.

ThumbsUp
ThumbsUp
12 years ago

well said patriotz every single word is 100% correct.

patriotz
patriotz
12 years ago

The bailout will only prolong the painEfforts to slow down RE downturns just result in a lower bottom, because the longer prices remain high, the more excess supply gets built. And that goes for "creative financing" too.There is way, way more housing in the US than households who can buy it at current prices – actually there's more housing than there are households, period, and no amount of juggling can prevent the eventual fall.I'm not saying gold is not a good investmentsGold is not an investment, period. It's a commodity, or if you want to think of it that way, money. But it's not an investment, any more than a $100 or 100 Euro bill, because it has no yield. It's not capital.

Ulsterman
Ulsterman
12 years ago

OK Michael, i followed your link to kitco and Richard Daughty "The Mogambo Guru" must truely be the worst blog writer around. The first 2-3 paragraphs take awful to a whole new level. Seriously, how can you read this stuff. I'm not saying gold is not a good investments,it's just the sites you always quote that make you seem like a candidate for Britains infamous "Monster Raving Looney Party."

Ulsterman
Ulsterman
12 years ago

Michael, with all due respect when i read the intro's you post you immediately bring forth images of religious zealot, gold junkie etc.I think the tone you use ultimately discredits you because people no longer take you seriously. We all know you are mad keen on gold – just tone down the rhetoric a bit and i might actually read your posts.

jesse
jesse
12 years ago

"The bail-out south of border is truly in the bag."The bailout will only prolong the pain. As is the way with government policies, there is a pretty good chance it will produce effects opposite to the intentions.

markx
markx
12 years ago

And you will pay more for this RE madness. The bail-out south of border is truly in the bag. Now it's only a matter of time for Canada to follow suit. One for the bulls–head I keep the profit, tail the bears bail me out. Can't lose in RE. No, really.

tulip-Mania2
tulip-Mania2
12 years ago

"Far from passing the world our calling card, VANOC, et al, are sucking the life out of this city – like a leech, tick, or other such parasite."Agreed, but as I said before, this gang of usual suspects, should be publicly flogged, at the Olympic opening ceremony, for crimes against the economy.

Anonymous
Anonymous
12 years ago

bored of the rings

solipsist
solipsist
12 years ago

That augers well for property holders in Vancouver…look to be paying much higher taxes for the coming decades.Far from passing the world our calling card, VANOC, et al, are sucking the life out of this city – like a leech, tick, or other such parasite.

Anonymous
Anonymous
12 years ago

Surprise, surprise, surprise and we're still a long way away I can only imagine how much this will all really cost.