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Olympic funding agreement saves Calgary plebiscite

CALGARY – The citizens of Calgary will head to the polls on Nov. 13 in a plebiscite to determine if a bid for the 2026 Olympic and Paralympic Winter Games should proceed.
Council Olympics
Dozens of people attend a regular session of Canmore Council to voice their opinion on a potential 2026 Winter Olympic Games bid, at the Civic Centre in Canmore on Tuesday (Oct. 30).

CALGARY – The citizens of Calgary will head to the polls on Nov. 13 in a plebiscite to determine if a bid for the 2026 Olympic and Paralympic Winter Games should proceed.

The plebiscite itself was at risk of being cancelled this week after City of Calgary council took issue with the funding agreement, or lack thereof, with the federal and provincial governments.

On Tuesday (Oct. 30), Calgary’s Olympic assessment committee forwarded a recommendation to city council on Wednesday (Oct. 31) to reconsider motions that launched the process to hold the plebiscite and authorized the city to negotiate a multi-party agreement.

City council voted after seven hours of debate to defeat the recommendation, with six councillors and Mayor Naheed Nenshi showing support to proceed with the plebiscite to hear from Calgarians at the polls.

BidCo board chair Scott Hutcheson argued that Calgarians should be allowed to vote in the plebiscite.

“By terminating the plebiscite today, you are taking away our democratic right to this publicly proclaimed and publicly agreed upon opportunity for the public to vote on whether they want to bid on the Games in 2026,” he said.

BidCo 2026 publicly released an updated funding agreement signed by Premier Rachel Notley and federal Minister of Sport Kirsty Duncan on Tuesday night that also reduced the proposed overall public funding request to $2.875 billion from the original request $3 billion.

The numbers reflect updated security costs, according to BidCo CEO Mary Moran and cost savings in essential services worth $185 million.

But there was also changes to the draft hosting concept plan with respect to capital costs for proposed housing in Calgary with a reduction of units.

“If consideration of the proposal results in a favourable conclusion, we would move to an agreement in principle on cost-sharing,” Moran said.

“This was an interim step to get us to the multi-party agreement, which is expected to be finalized in the coming weeks or days.”

The financial agreement, as proposed, set out that in 2018 dollars the province would provide $700 million and the federal government would provide $1.423 billion in matching funds, as well as $30 million in “leveraging initiatives identified in the hosting plan.”

The funding proposed for the City of Calgary in the letter was set at $370 million, as well as $150 million the City is already planning to spend on improvements in the Victoria Park area. The city would also be expected to guarantee $200 million in insurance coverage that would cover capital cost overruns.

Calgary’s Chief Administrative Officer Jeff Fielding told council the parties involved in the negotiations were unable to reach a multi-party funding agreement in time.

“We hit a road block many weeks ago,” Fielding said. “That stalled negotiations and did not allow us to progress toward the finer points of the multi-party agreement.

“What you see (in this letter) is the result of a number of last minute negotiations at the 11th hour.”

Meanwhile, Canmore’s elected officials held a non-statutory public hearing on Tuesday (Oct. 30) night to hear from residents on whether they think pursuing a bid is prudent or not.

Canmore resident Norbert Meier thanked council for framing the question in such a way and giving the community and opportunity to speak to the issue.

Meier said it is important to clarify that Canmore is not being asked to host an entire Olympic event, but two sports representing 21 per cent of the overall events and less than 25 per cent of the athletes and officials.

“Being host community is an tremendous opportunity and it places us at a proverbial fork in the road,” Meier said. “One fork is Canmore’s future with the Olympics and one fork is Canmore’s future without the Olympics.

“Regardless of which fork we take the future of Canmore will be different than where we are today … the question is what fork in the road is going to strengthen Canmore’s future.”

He pointed to affordable housing, economic development, broadband Internet service, increasing visitation to the valley, and inspiring youth through sport as things Canmore has to contend with regardless of an Olympic and Paralympic event.

There were concerns expressed around the cost implications of the event, not just for Canmore, but in the event of unforeseen circumstances that arise when delivering on billions in infrastructure on a fixed timeline.

“The Olympics have the highest cost over run of any type of mega project in the world,” said resident Tracey Henderson. “Cost overruns happen, they happen to all of us and they happen to the Town of Canmore.”

Henderson said the value proposition for affordable housing as an athletes village looks good on the surface, but what would happen if the actual costs of delivering the project go up and Canmore taxpayers are on the hook.

The project is proposed to cost $116 million, with Canmore providing $6 million in land, $4 million in servicing, obtaining a $66 million in financing and the host corporation funding the remaining $42 million.

“We are considering undertaking Canmore’s biggest capital project ever to increase our debt load more than it has ever been all to be part of the riskiest mega project known in existence and to do this we have to be willing to crawl into bed with the most corrupt organization in the world all for the sake of 218 units of perpetually affordable housing and the possibility, but far from certainty, of resort municipality status,” Henderson said.

“I think this is not the responsible route to take. Let’s not be blinded by the glory, glitter and short-term benefits of the Olympics.”

Representatives of the Bow Valley Chamber of Commerce, Tourism Canmore Kananskis and Downtown Business Association all voiced support for the bid.

TCK executive director Dave Rodney said the Olympics brings stimulus to the tourism industry during the time of the year when the there is room for increased visitation.

Hal Retzer on the other hand questioned the effect that being in the spotlight of the Olympics would have on Canmore.

“I would say we are at capacity people wise, environmental wise and wildlife wise,” Retzer said.

“Another Olympic showcase is more and yes maybe we might get housing, but it would also attract a whole lot more second homeowners, build more multi-million dollar second homes and do nothing to increase affordability.”

Olympic mixed doubles curling gold medallist and Canmore resident John Morris gave an emotional plea to support the bid as a way to reinvigorate aging winter sport infrastructure that has already benefited generations of Canadians like him.

“I have benefited like many athletes from the resources and legacy of the 1988 Games,” Morris said.

He warned against comparing summer Games with winter Games in terms of size and scope of budget overruns and said should the bid move forward he expects the process to continue to be one that sees citizens hold decision makers accountable.

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