L.A. reaches deal on cost recovery for 2028 Olympics, amid warnings about financial risk

This is read by an automated voice.Please report any issues or inconsistencies here.

See more from the L.A.Times in Google Search.

Set us as preferred A divided Los Angeles City Council finalized a deal with organizers of the 2028 Summer Olympic Games aimed at controlling the city’s costs during the global event, amid complaints that the protections don’t go far enough.On a 10-4 vote, the council approved the Enhanced City Resources Master Agreement, which lays out the process for the city to seek reimbursement for the services it provides during the Games.City Administrative Officer Matt Szabo said the agreement sets up additional financial safeguards, by allowing the city to tap a $270-million contingency fund set up by LA28, the privately run Olympic organizing committee, if outstanding costs remain.Still, some on the council warned that taxpayers could wind up on the hook for $1 billion in police and other public safety costs if LA28 incurs serious losses.“This fails to provide any safeguards for Los Angeles taxpayers and most assuredly risks the city’s fiscal stability,” Councilmember Monica Rodriguez said after voting against the agreement.Councilmembers Eunisses Hernandez, Ysabel Jurado and Nithya Raman, who is running against Mayor Karen Bass, also were opposed.Critics of the Games have long voiced concern about the risks that surround the event.If LA28 incurs massive financial losses, the city would cover the first $270 million.

The state would absorb the next $270 million.After that, the city’s general fund, which pays for basic services, would cover any remaining shortfall.The city’s negotiating team said L.A.’s political leaders committed the city roughly a decade ago to serve as a financial backstop for the Games, as part of the contract that made L.A.

the host city.“We are providing you today as many protections as we can, given the reality that if it is not financially successful, it does fall onto us,” Szabo said.“S...