LA28GAMES AGREEMENT
CITY COUNCIL
OCTOBER 8, 2024
STUDY SESSION
Item 7-A
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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 1 North and beach ve nue a rea w ould be fe nce d .
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Venue Footprint
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Agreements with LA28
Past, Present, & Future
G ua ra nte e Le tte rs
Item 7-A
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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
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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
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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
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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
Item 7-A
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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
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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
enha 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 will 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
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
City of LA
LA28
State of
California
Financial
Guarantees
Reimbursement for
City Services
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
City of LA
LA28
State of
California
Will reimburse for
select enhanced
services.
Financial
Guarantees
Reimbursement for
City Services
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
City of LA
LA28
State of
California
Will reimburse for
select enhanced
services.
Financial
Guarantees
Unknown payment
prioritization &
timeline.
Reimbursement for
City Services
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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 .
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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 .
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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 .
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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 .
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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 .
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024
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 pub 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.
Item 7-A
October 8, 2024
Item 7-A
October 8, 2024