Olympics 2016

CHICAGO (CBS) ― At a total cost of nearly $5 billion, Chicago unveiled its Olympic bid book on Friday, a visionary plan that would transform the near South Side with a privately developed $1 billion "Main Street'' style athletes village near McCormick Place as well has a new stadium and aqautics center in Washington Park.

As CBS 2 Chief Correspondent Jay Levine reports, hard, solid financial information was released for the first time on Friday, and it showed a price tag for the Olympics of $4.9 billion.

The figure breaks down into $3.3 billion in funds that can be used to build the venues and operate the games, a $500 million rainy day fund, and $1 billion to construct the Olympic Village.

Organizers say that will all be matched by revenues of $4.9 billion, and they say they do not believe that any city or taxpayer-funded guarantee will have to be used to finance the Games.

The plans were unveiled Friday morning at the Chicago History Museum, 1601 N. Clark St.

Also on display Friday morning were color drawings of the Olympic Stadium in Washington Park,  the Olympic Village and other venues, including plans to transform McCormick Place into a massive sports complex and media center. Chicago is competing for the Olympics with Tokyo, Madrid and Rio de Janeiro.

The plans for the Olympic Village, on the site of the old Michael Reese Hospital, call for 21 buildings, about 12 stories high each, which will house 16,000 athletes and officials. The structures will be built by several different developers, and they will feature pools, a fitness center, a performance amphitheatre, and tracks for the athletes. The complex will showcase a Main Street walkway as well as a promenade leading to a private athletes beach on Lake Michigan.

After the Olympics, the village will be turned around and sold by private developers for about $1.1 billion, Chicago 2016 officials said.

But the bid is about more than just athletes, said Chicago 2016 Chief Executive Officer Pat Ryan.

"Friendship has emerged as the key theme of our bid," Ryan said. "In the Olympic and Paralympic Games, you see the possibility of reaching out in the world; extending the hand of friendship on behalf of America to people everywhere."

Concerns have been mounting that Chicago could lose money on the Olympics.

"Athens lost money, Sidney lost money, Vancouver is going to lose money," said Allen Sanderson, a sports economist at the University of Chicago, in a Thursday interview. "Beijing, it's hard to say they lost money … London is certainly going to lose money.

Chicago 2016 officials have said there is nothing to worry about. Twenty-two of the 28 venues proposed for a Chicago Olympics are already built. The federal government is expected to pick up security and transportation costs.

Furthermore, every Olympics ever held in the United States has made money. Chicago is banking on doing the same.

"I'm very, very confident we will not reach into the funding of the city's guarantee," Ryan said.

But given Chicago's record on cost over-runs on major projects, like Millennium Park, the fear of having to dip into the city's $500 million guarantee seems quite real.

Whatever the case, the Olympic plans are upholding the advice of Chicago architect and city planner a century ago.

"Make no little plans," Daniel Burnham said in a legendary quote, which was included in the bid book. "They have no magic to stir men's blood and probably themselves will not be realized. Make big plans; aim high in hope and work."

President Barack Obama will present Chicago's proposal formally to the International Olympic Committee in October.

And how does Chicago compare to its competitors?

The massive guarantee is the big plus for Tokyo's so-called "Setting the Stage for Heroes." Its minus is geographic, coming so soon after Beijing 2008.

Madrid's Safest Choice for 2016 is based on a "ready now" plan, and the legendary Olympic Samaranch family's clout. The minuses are security in light of recent terrorist bombings, and that it would follow London 2012 and be the third of four Summer Games in Europe.

Rio de Janeiro, which will not release its plan until Monday, is favored by history. The Olympics have never been in South America. But some doubt Rio's Ability to stage them. Crime is also a major problem.

Chicago's "Reaching For A better World" theme and beautiful lakefront setting is its biggest plus; that, and President Obama. A concern for the IOC is the relatively small guarantee, should problems arise. But the president could trump any and all concerns.

The guarantee is important to IOC officials, and may be one reason Tokyo's bid is a strong one.

The Chicago Tribune's Phil Hersh, who has covered Olympic sports for decades, says Chicago could be a big winner or a big loser.

"If Chicago gets through the first round, we might be favorites," Hersh said.

How's that for hedging your bets? But it really is that close, because in the first round everyone votes for their friends and neighbors, which is why Madrid led in the first rounds four years ago, but never made the finals.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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