Denver, Colorado USA Olympic & Paralympic Winter Games Exploratory Committee - Denver Metro Chamber of Commerce

Denver, Colorado USA

Olympic & Paralympic Winter Games
Exploratory Committee

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Welcome

 Today’s Discussion
 ▪   Our Charge
 ▪   Olympics 101
 ▪   Our Process
 ▪   Findings
 ▪   What’s Next?

Our Charge
▪ Denver’s Winter Olympic and Paralympic Exploratory Committee
  was asked to determine if hosting a future Olympic and
  Paralympic Winter Games could be done and should be done.

▪ The Committee was asked to identify ways for the Games to be
  financed with no direct public funding, while still meeting all the
  requirements of the International Olympic Committee (IOC).

▪ The Committee was asked to engage the residents of the State of
  Colorado to determine what legacy a Winter Games would leave
  for Denver and Colorado.

OLYMPICS 101

IOC - Bidding for the Games
▪ Traditionally, process starts nine years in advance of the Games

 For Example, the bidding period for 2030:
   o IOC Host City Selection:       September 2023
   o IOC Candidate Phase:           October 2022 – September 2023
   o IOC Dialogue Phase:            September 2021 – October 2022

IOC - Bidding for the Games
▪ Traditionally, process starts nine years in advance of the Games with a selection seven
  years in advance of the Games
▪ A New Bid Process
   o “Agenda 2020” – a strategic roadmap for the future of the Olympic movement
   o “The New Norm” – a set of 118 reforms reimagining how the Olympic Games are
      delivered

OUR PROCESS

Our Process

  This endeavor would be done the Colorado Way –
 with an eye toward an innovative approach, robust
 community engagement and feedback, and a focus
 on understanding how embarking on such a process
      could benefit the Olympic and Paralympic
  Movements and leave a long-term legacy for the
                  Centennial State.

Subcommittees

 ▪ Games Operations – Venues, Sport, Sustainability,
   Transport, Security, Accommodations
 ▪ Finance – Budget, Funding
 ▪ Legal – Structure, Referendum
 ▪ Community & Civic Engagement – Voice of the People
 ▪ Communications – Information Dissemination

Recommendation Process

 ▪ Criteria: Each committee established its own criteria it
   would use to make their recommendation to the
   Exploratory Committee

 ▪ Exploratory Committee: Super-majority to move
   forward

FINDINGS

GAMES OPERATIONS

Games Operations Subcommittee Members
   ▪   Jerome Davis (Co-Chair)             ▪   Lisa Hough
   ▪   Carrie Besnette Hauser (Co-Chair)   ▪   Walter Isenberg
   ▪   Kyle Chism                          ▪   Chris Jarnot
   ▪   Joe Ellis                           ▪   Jim Martin
   ▪   Greg Feasel                         ▪   Steve McCarthy
   ▪   Natalie Geer                        ▪   Maja Rosenquist
   ▪   Jessica Goad                        ▪   Mike Zoellner

Games Operations Overview
     ▪   Venues
     ▪   Transport
     ▪   Sport
     ▪   Sustainability
     ▪   Safety & Security
     ▪   Accommodations

Venues | Key Findings
 Competition Venues
 ▪ 3 Concepts
    ▪ National – All venues are existing
    ▪ Regional – 14 of 16 venues existing – 2 new legacy venues
    ▪ Local – 13 of 16 venues existing – 3 temporary venues

Venues | Key Findings
 Competition Venues

 Non-competition Venues
 ▪ Athlete Village
    ▪ Existing Hotels
    ▪ New Construction – legacy affordable / employee housing
 ▪ Media Center / International Broadcast Center
 ▪ Opening and Closing Ceremonies
 ▪ Medals Plaza
 ▪ Live Sites

Venues | Key Findings
 Competition Venues

 Non-competition Venues

 Venue Owners

Transport | Key Findings
 ▪   Existing airport infrastructure and operations exceed IOC requirements with 61.5m passengers per year
     and planned improvements underway.

 ▪   No new RTD infrastructure is required – augmented transportation will be implemented via Park & Rides
     and shuttles.

 ▪   CDOT letter states that I-70 could handle the Winter Games in current configuration.

 ▪   I-70 Record of Decision improvements are expected to continue to accommodate I-70 traffic and for the
     Olympic Route Network – also consideration for short-term temporary use of shoulder if permanent
     improvements aren’t made.

Games Operations | Key Findings
     ▪   Venues
     ▪   Transport
     ▪   Sport
     ▪   Sustainability
     ▪   Safety & Security
     ▪   Accommodations

Games Operations | Recommendation

  Based on the criteria and summary points the Games Operations Subcommittee recommends to
  the Exploratory Committee that Denver and Colorado are capable of bidding on the Olympic and
  Paralympic Winter Games.

FINANCE

Finance Subcommittee Members
   ▪   Navin Dimond (Co-Chair)      ▪   Rus Heise
   ▪   Steve McConahey (Co-Chair)   ▪   Bob Hottman
   ▪   Greg Anton                   ▪   Tracy Huggins
   ▪   Denise Burgess               ▪   Jeff Ruffe
   ▪   Jim Burton                   ▪   Donna Tillery
   ▪   Marshall Crawford            ▪   Scotty Williams

Finance | Key Findings | Budget Projections

▪ Built around alternative venue options
▪ Incorporate Agenda 2020 and “New Norm” provisions
▪ Built upon previous North American Winter Games experience with inflation
  factors and revisions for Games requirements/changes since 2002/2010
▪ Include a designated Legacy Fund
▪ Incorporate costs of proposed risk management/guarantee plan
▪ Assume no direct governmental subsidies or guarantees (Note: does anticipate
  contracting for certain services and Federal Government provision of security)

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Finance | Key Findings | Core Budget Plan

 Expenditures         ($ in millions)   Revenues                            ($ in millions)
 Games operations              $694     IOC Broadcast and TOP sponsorship            $559
 Venues                        $406     Domestic sponsorship                         $566
 Staffing                      $335     Ticketing (two stadiums)                     $504
 IT & Telecom                  $239     Licensing and merchandise                     $78
 Contingency                   $135     Donations                                     $50
 Legacy                         $52     Business Operations                          $104
 Total expenditures          $1,861     Total revenues                             $1,861
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Finance | Key Findings | Guarantee / Risk Management Plan

  ▪ Historically IOC has required a financial guarantee provided by the federal/local government

  ▪ U.S. does not provide such a guarantee, and Colorado/Denver would require a vote to provide one

  ▪ Goal: structure guarantee/risk management programs to provide protection against a variety of
    potential liability and financial loss without using government funding
     ▪ Realistic budget
     ▪ Contingency fund
     ▪ Corporate guarantees in lieu of governmental guarantees
     ▪ Risk management plan                                                                           25

Finance | Recommendation

 Based on our analysis of historic Winter Olympic data, updated IOC 2020 Plan and "New Norm" guidance,
 input from subject matter experts, confirmation of the key elements of a new risk management plan and
 our assessment of sponsorship potential, the Finance Committee believes these estimates and projections
 are reasonable and achievable and recommends them for adoption by the Exploratory Committee in support
 of moving forward with a bid should we be invited to do so by the USOC.

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LEGAL

Legal Subcommittee Members
  ▪   Cole Finegan (Co-Chair)   ▪   Jordan Chase
  ▪   Bruce James (Co-Chair)    ▪   Deanne Durfee
  ▪   Helen Atkeson             ▪   Abby Kirkbride
  ▪   Bradley Beck              ▪   Jonathan Pray
  ▪   Terrance Carroll          ▪   Craig Umbaugh

Legal | Key Findings
▪   A framework can be established to operate a privately-financed Winter Olympics and Paralympics Games.

▪   A nonprofit entity, such as a 501(C)(3), can be used to serve as the organizing committee, and similar entities have served in such capacity,
    such as the Los Angeles OCOG.

▪   Traditionally, a combination of City and State resources have been used to guarantee the financial performance of the Games, but the IOC
    has opened the door to alternative structures through it’s Agenda 2020 guidelines and through the announcement of it’s New Norms.

▪   An insurance and private financial guarantee structure can be implemented to address all known risks in hosting the Winter Olympics and
    Paralympic Games.

▪   A vote is not legally required since no State or Local taxpayer funds would be at risk for any financial shortfalls associates with the Games.

▪   A Denver-only vote is not recommended because the Games would be held throughout the State of Colorado.

Legal | Recommendation

▪ A framework does exist to host a privately financed and operated
  Winter Olympic and Paralympic Games.

▪ A vote is not legally mandated, but many voices believe any decision
  to bid should be accompanied by a statewide vote.

COMMUNITY & CIVIC
ENGAGEMENT

Community & Civic Engagement Subcommittee Members

   ▪   Albus Brooks (Co-Chair)     ▪   Kelly Brough
   ▪   Richard Scharf (Co-Chair)   ▪   Luella D’Angelo
   ▪   Janice Sinden (Co-Chair)    ▪   Tami Door
   ▪   Jandell Allen-Davis         ▪   Mike Ferrufino
   ▪   Christine Benero            ▪   Carrie Besnette Hauser
   ▪   Maria Garcia Berry          ▪   Michelle Lucero
   ▪   Chauncey Billups            ▪   Marjorie Sloan

Statewide Poll
▪   735 respondents statewide
    January 22 –28, 2018

▪   Included an oversample of
    200 Denver voters and 100
    Eagle County voters

▪   By a 2:1 margin, voters favor
    Denver being the host city for
    the Winter Games

Community & Civic Engagement |
Recommendation
  Based on the Sharing the Gold Advisory in Metro Denver and mountain communities, speakers bureau
  presentations, online community meetings, website, public survey and poll, which collectively have
  connected with over 30,000 Coloradans, it is the recommendation of the Community & Civic Engagement
  subcommittee that Denver and Colorado should pursue an Olympic and Paralympic Winter Games bid in
  the future, if the USOC calls for U.S. bid candidates.

  The subcommittee further recommends that there be ongoing community outreach, which will be critical
  throughout the bid process and, if Denver and Colorado do host the Winter Games, the community shall be
  involved in the Games development as well as after the Games conclude to carry out long-term legacy
  projects and programs.

FINAL RECOMMENDATION

Our Charge Committee Recommendation
Exploratory
A future Bid Committee representing Denver and Colorado should pursue a future Olympic and Paralympic Winter Games in
a manner that is:

▪   Privately financed to safeguard Colorado residents from any budget overruns associated with hosting the Winter Games
▪   Protected by insurance and other risk management strategies to satisfy IOC and USOC requirements
▪   Structured to provide a level of transparency to the public-at-large
▪   Designed to prioritize the legacy or temporary use of venues rather than constructing new ones
▪   Sustainable and explores all options to limit environmental impact
▪   Sensitive to the needs of all residents, while exploring how the Winter Games could be a catalyst for creative solutions
    to pressing challenges, such as traffic congestion and affordable housing
▪   Voted on by the residents of Colorado through a statewide initiative

What’s Next?

  ▪ Working Group within Denver Sports

  ▪ USOC may, at some time, decide to bid on a
    Winter Games

  ▪ Vote of the people of Colorado

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QUESTIONS?

THANK YOU!