Hosting the 2026 Olympic and Paralympic Winter Games in Calgary will cost about $ 5.23 billion, according to the organization tasked with exploring a possible bid.
The new estimate, part of a draft plan prepared by Calgary 2026, is nearly $ 1 billion more than that of the Calgary Bid Exploration Committee, which pegged the price at $ 4.6 billion in June 2017.
Calgary 2026 said Tuesday that $ 3 billion would have to come from taxpayers, via city, provincial and federal funding.
The cost breakdown for each level of government is not known, but Calgary 2026 president and CEO Mary Moran said she hopes to know next month — 30 days before a Nov. 13 plebiscite about the Games.
The remainder will be paid for privately via ticket sales, corporate sponsorship and a contribution from the International Olympic Committee in cash and services.
Moran said the first step was calculating the $ 3 billion figure.
“Now we’ve got to go have the conversation — who pays for what,” she said.
All figures are in 2018 dollars. Calgary 2026 says it didn’t include the potential rate of inflation over the next eight years — which it estimates will be 2.25 per cent annually.
By comparison, the 2010 Winter Games in Vancouver and Whistler cost roughly $ 7.7 billion.
The plan includes two new facilities in Calgary — a fieldhouse that would host figure skating and short track speed skating, and a new mid-size arena capable of seating 5,000 to 6,000 spectators.
Both facilities would be located adjacent to McMahon Stadium, home of the Calgary Stampeders, which would be upgraded to also host events.
The rest of the events would be held in refurbished venues dating from the 1988 Olympics in Calgary, Canmore and Kananaskis.
Ski jumping and combined Nordic events are planned for Whistler, while the location of curling facilities is to be determined.
The draft plan also calls for a revamp of the Saddledome rather than a new NHL-calibre arena — which has recently been discussed — although there is a caveat saying a new arena could be incorporated into the plan.
There are also plans to upgrade the BMO Centre.
Additional infrastructure not included
There are no figures included for potential infrastructure investments, including possible transit expansions.
Moran said that’s not within the organization’s purview.
“We would says that’s not part of the Games,” she said. “If cities and provinces and countries decide to invest in other things… Those would not be a necessity for the 50 days of the Games.”
Moran said Calgary 2026 anticipates $ 7.4 billion worth of economic benefits coming into Calgary and Alberta from the Games.
She also said there would be $ 2.2 billion of private investment that would not materialize without the Games.
Moran said she doesn’t see any other economic development project with the same kind of return on investment.
“This is the one initiative that will put people back to work right away,” she said.
There will also be housing left behind. The draft plan anticipates spending $ 583 million on accommodations for athletes and others that will be turned into housing after the Games.
Calgary 2026 said only 20 per cent of that housing would be put on the market, with the remainder set aside for affordable, senior and student housing.
The athletes village in Calgary would be in the Rivers District, acting as a catalyst for East Victoria Park, which is slated for redevelopment and has been touted as the location for a new arena.
The budget includes contingency funding in case of cost overruns, built into every capital project. Any money remaining in the contingency fund would either be invested into a community fund or returned to government.
“In our view, there’s much more potential for cost savings than there are for overruns,” said Moran.
The draft hosting plan is being presented to Calgary city council on Tuesday afternoon, providing one more opportunity to exit the bid process before the planned plebiscite.
The IOC’s deadline to submit a bid is January. IOC members will vote on a host city in September 2019.
With files from The Canadian Press