LA28GAMES AGREEMENT
CITY COUNCIL
OCTOBER 8, 2024
STUDY SESSION
Summer Olympics Schedule
April- Ma y 2028
Ap p roxim a te ly 400 sp a c e s in Lot 1 North w ould b e oc c up ie d .
June 2028
800 sp a c e s in Lot 1 North w ould b e oc c up ie d a s w e ll a s the b e a c h c onstruc tion a re a .
July 14-30, 2028
2028 LA Sum m e r O lym p ic Games
August 2028
Te a r d ow n: Ap p roxim a te ly 800 p a rking sp a c e s w ould b e oc c up ie d in Lot 1 North.
July and August 2028
Lot 1North and beach ve nue a rea w ould be fe nce d .
Venue Footprint
Agreements with LA28
Past, Present, & Future
G ua ra nte e Le tte rs
Agreements with LA28
Past, Present, & Future
G ua ra nte e Le tte rs
G a m e s Ag re e m e nt
G ua ra nte e Le tte rs
G a m e s Ag re e m e nt
Enha nc e d City Re sourc e s Ma ste r Ag re e m e nt
Agreements with LA28
Past, Present, & Future
October 2026
Agreements with LA28
Past, Present, & Future
G ua ra nte e Le tte rs
G a m e s Ag re e m e nt
Enha nc e d City Re sourc e s Ma ste r Ag re e m e nt
Ve nue Use Ag re e m e nt
Ve nue Se rvic e s Ag re e m e nt
October 2026
October 2027
Games Agreement
• Four a g re e m e nts to b e ne g otia te d se p a ra te ly. • Unc le a r if Pie r op e ra tions would b e im p a c te d . • Norm a l a nd c ustom a ry le ve l of City se rvic e s b a se d on the City of LA’s unknow n se rvic e le ve ls. • Re im b urse m e nt for se rvic e s p rovid e d w ithin the unknow n g a m e s footp rint. • Know n fina nc ia l risks w ith unknow n m a g nitud e . • No re ve nue - g e ne ra ting op p ortunitie s, suc h a s sp onsorship s, c o- b ra nd ing , a nd p ub lic or p riva te e ve nts w ithout p rior w ritte n a p p rova l from the IO C.
• City re q uire d to g ive LA28 a p riority option to p urc ha se up to 100% of the City’s a d ve rtising sp a c e . • No c om m unity b e ne fits.
Notable Terms
Games Agreement & Guarantee Letters
• Four a g re e m e nts to b e ne g otia te d se p a ra te ly. • Unc le a r if Pie r op e ra tions would b e im p a c te d . • Norm a l a nd c ustom a ry le ve l of City se rvic e s b a se d on the City of LA’s unknow n se rvic e le ve ls. • Re im b urse m e nt for se rvic e s p rovid e d w ithin the unknow n g a m e s footp rint.
Key Differences
Known Unknown
GAMES AGREEMENT
• Ve nue footp rint
• City w ill p rovid e e nha nc e d se rvic e s
• LA28 is w illing to re im b urse the City for
e nha nc e d se rvic e s
• Pie r im p a c ts - lost p a rking , e nha nc e d
se c urity m e a sure s
• Eve nts w ill b e re stric te d
• Enforc e m e nt of a m b ush m a rke ting , ille g a l m e rc ha nd ise sa le s, unfa ir b usine ss p ra c tic e s w ill b e re q uire d
• Exp e c te d to c oop e ra te in g ood fa ith on
re g iona l e fforts to sup p ort the G a m e s, suc h
a s m ob ility, se c urity, e tc .
• G a m e s footp rint
• Exa c t se rvic e s a nd le ve ls of se rvic e ne e d e d • W hic h se rvic e s w ill b e re im b urse d , ra te s, p a ym e nt sc he d ule , a nd p riority
• Pie r im p a c ts - if Pie r w ill b e fully op e n w ith uninte rrupte d op e ra tions
• Exte nt of e ve nt re stric tions a nd op p ortunitie s for c olla b ora tion w ith LA28
• City’s role in e nforc e m e nt, sta ffing le ve ls tha t w ill b e re q uire d , c ost im p a c ts
• W ha t tha t c oop e ra tion w ill e nta il a nd
sta ffing / c ost im p a c ts
Reimbursement for
City Services
• City would b e re q uire d to p rovid e the se
se rvic e s a t the City’s c ost.
• Not e lig ib le for re im b urse m e nt.
• Ba se d on the City of LA’s se rvic e le ve ls a nd
ra te s, w hic h a re c urre ntly unknow n.
• Sub je c t to re im b urse m e nt from LA28.
• No g ua ra nte e , tim e ta b le , or p roc e ss for
re im b urse m e nt.
• O nly re im b urse d w ithin the ve nue footp rint,
a lthoug h e nha nc e d se rvic e s would b e
re q uire d throug hout the City, suc h a s:
⚬ De sig n, c onstruc tion, m itig a tion, a nd
re m ova l of roa d wa y im p rove m e nts for
d e d ic a te d a thle te tra ve l la ne s re q uire d by LA28, a nd
⚬ Enforc e m e nt of ille g a l m e rc ha nd ise sa le s Cityw id e .
Normal & Customary Enhanced
Reimbursement for
City Services
Financial
Guarantees
• $270 m illion each ba ckstop from Sta te of C a lifornia and City of LA a re inte nd e d to pay debts owed to the City of LA and the IO C. City of LA would be re sp onsib le for a ll other fina nc ia lshortfa lls.
• Unknow n p riority of wa te rfa ll pa yments to a ll ve nue c itie s (Ca rson, County of LA, Ing le wood , Long Be a c h, O kla hom a City, Pa sa dena , Te m e c ula ). City of LA re c e ive s first p riority of re im b urse m e nt for se rvic e s from LA28. USC and UCLA a re unknown.
• No a ssura nce s that the fund ing w ill be a va ila b le to c ove r a llshortfa lls. • Ag re e m e nt would pre ve nt the City from p ursuing le g a l a c tion a g a inst any e ntity e xc e pt LA28, a non- p rofit org a niza tion that may d issolve shortly a fte r the 2028 Sum m e r Games.
City of LA
LA28
State of
California
Financial
Guarantees
Reimbursement for
City Services
City of LA
LA28
State of
California
Will reimburse for
select enhanced
services.
Financial
Guarantees
Reimbursement for
City Services
City of LA
LA28
State of
California
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Reimbursement for
City Services
City of LA
LA28
State of
California
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Reimbursement for
City Services
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
City of LA
LA28
State of
California
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
C it y o f LA h a s d is c re t io n to
re le a s e fu n d s to O C O G fo r
t h ird p a rt y d e b t s .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
C it y o f LA h a s d is c re t io n to
re le a s e fu n d s to O C O G fo r
t h ird p a rt y d e b t s .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Fo r debts owed to
C it y of LA and IO C
for c la im s by t h ird
p a rt ie s.
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
C it y o f LA h a s d is c re t io n to
re le a s e fu n d s to O C O G fo r
t h ird p a rt y d e b t s .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Fo r debts owed to
C it y of LA and IO C
for c la im s by t h ird
p a rt ie s.
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
Up to $ 2 7 0 M p ro vid e d
o n ly a fte r LA2 8 fu n d in g
a n d C it y o f LA’s $ 2 7 0 M
is e xh a u s te d .
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
C it y o f LA h a s d is c re t io n to
re le a s e fu n d s to O C O G fo r
t h ird p a rt y d e b t s .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Fo r debts owed to
C it y of LA and IO C
for c la im s by t h ird
p a rt ie s.
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
Up to $ 2 7 0 M p ro vid e d
o n ly a fte r LA2 8 fu n d in g
a n d C it y o f LA’s $ 2 7 0 M
is e xh a u s te d .
Pa id a t g o ve rn o r’s
d is c re t io n .
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
C it y o f LA h a s d is c re t io n to
re le a s e fu n d s to O C O G fo r
t h ird p a rt y d e b t s .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Fo r debts owed to
C it y of LA and IO C
for c la im s by t h ird
p a rt ie s.
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
Up to $ 2 7 0 M p ro vid e d
o n ly a fte r LA2 8 fu n d in g
a n d C it y o f LA’s $ 2 7 0 M
is e xh a u s te d .
Pa id a t g o ve rn o r’s
d is c re t io n .
City of LA
LA28
State of
California
$ 2 7 0 M p ro vid e d o n ly
a fte r LA2 8 's fu n d in g
is e xh a u s te d .
C it y o f LA h a s d is c re t io n to
re le a s e fu n d s to O C O G fo r
t h ird p a rt y d e b t s .
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Games agreement prevents
City from taking legal action
against IOC, City of LA, and
State of California.
Reimbursement for
City Services
Fo r debts owed to
C it y of LA and IO C
for c la im s by t h ird
p a rt ie s.
Area of reimbursement
eligibility unknown;
enhanced services would
be required throughout the
City.
Up to $ 2 7 0 M p ro vid e d
o n ly a fte r LA2 8 fu n d in g
a n d C it y o f LA’s $ 2 7 0 M
is e xh a u s te d .
Pa id a t g o ve rn o r’s
d is c re t io n .
Budget Implications of
Hosting Beach Volleyball
• Event cost approx . $15.5M – based on known information • Reimbursement amount is UNDETERMINED / UNKNOWN
• Capital infrastructure improvements or new construction? • Additional staff time and resource needs across organization • Post- event site restoration and potential long - term infrastructure maintenance?
• Known financial risks with unknown magnitude
• To maintain a balanced budget, tradeoffs will be required if the City takes on this additional liability
Potential Options & Alternatives
for Moving Forward
• Direct staff to bring the Games Agreement back to Council as an Administrative Item on October 22, 2024 for a vote .
• Decline the current Games Agreement terms holding firm to critical deal points .
Staff Recommendation
• Ad opt a find ing of C a te g oric a l Exe m ption pursua nt to Se c tion 15272 (O lym p ic Games) of the C a lifornia Environm e nta lQ ua lity Ac t (CEQA) G uid e line s; • Hold a study se ssion on the Games Ag re e m e nt and options and a lte rna tive s to host beach volle yb a ll for the LA28 O lym p ic s, we ig hing the p ote ntia l b e ne fits of d ire c t involve m e nt a g a inst the p ote ntia l long -term fina nc ia l and le g a lrisks to the City; • Re c e ive p ub lic comment; and
• Provid e d ire c tion to sta ff on how to proce e d in ne g otia tions w ith LA28.