Jun 18, 2009 3:10 pm US/Central
Daley Promises To Explain Olympic Money Guarantee
CHICAGO (CBS) ―
There was continued fallout from Mayor Daley's Olympic bombshell in Switzerland this week. Did he read the fine print when he promised financial guarantees for the 2016 summer games?
CBS 2 Chief Correspondent Jay Levine looked for answers.
We're talking about unlimited financial guarantees in the admittedly unlikely event of catastrophic cost overruns.
Mayor Daley is not known as a great orator. But the story from Switzerland is that it was one word that got him into trouble -- "yes" – to a seemingly simple question he may not have understood.
Surrounded by murals making it seem like they were perched high above Chicago's lakefront, the 2016 group tried to give International Olympic Committee voters who have never been here a feel for the city.
More than 70 of the 100 IOC voters toured Chicago's exhibit in Lausanne, Switzerland on Thursday, viewing displays of Chicago's plan for the 2016 games, asking questions about specific venues and various aspects of Chicago's bid.
One question they didn't ask was about financial guarantees. The mayor dealt with that Wednesday, during the question-and-answer phase of Chicago's formal presentation. Those inside the session, which was off-limits to reporters, said the mayor was asked, "Will you sign the host city contract?"
He reportedly replied, "Yes, of course."
Sources in Switzerland speculate Daley may not have expected the question and may not have been fully aware of the fine print in the 41-page document. Section 1, Paragraph 4 reads: "… the financial responsibility for the planning, organization and staging of the Games...shall be entirely assumed ... by the City."
The mayor tried to clarify today by saying Chicagoans were at risk for "no more than the $500 million already approved by City Council."
So which is it? No more than $500 million? Or the entire financial responsibility?
"I wish he'd told us about it first," Ald. Toni Preckwinkle said.
She pointed to a city council ordinance that permits the mayor to sign the contract, but added she wants hearings on the issue.
Daley's spokesman, Jackie Heard, was among those doing damage control. "We will defer to the aldermen," she said. "We'll do whatever they deem necessary -- a vote, a public hearing, whatever."
Ald. Joe Moore is demanding outside experts testify that the risk to taxpayers really is minimal, because it's their money the mayor's betting that the $40 billion Beijing games, the $30 billion Athens cost, and the $20 billion London's on track to spend will not be repeated here.
The IOC will decide in October whether Chicago gets to host the 2016 Olympics.
The Associated Press contributed to this report.
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