Chicago's quest to host the 2016 Summer Olympics has been given a boost as
the city has struck a US$86 million deal to purchase a property on its South
Side for building an Olympic village, it is reported yesterday.
The construction of an Olympic Village will be moved to the campus of Michael
Reese Hospital in the south of the city, now that the property owner has agreed
to restructure the deal to accommodate soaring demolition and environmental
clean-up costs.
There are about two months to go until Chicago has to submit its detailed bid
book to the International Olympic Committee.
Mayor Richard Daley initially wanted to roll the dice that a depressed real
estate market would come roaring back -- by borrowing US$85 million to finance
the hospital purchase and sell it to a private developer.
The mayor's original plan called for Medline Industries, which owns the
37-acre Reese site, to make a "charitable contribution" of US$20 million that
was supposed to be enough to cover demolition, environmental cleanup and five
years of interest payments on the loan at a rate of 5 percent.
Under the new plan, Medline's "charitable contribution" will rise to US$32.5
million. And instead the overall purchase price will rise by US$1 million to
US$86 million.
Chicago is vying against Tokyo, Madrid and Rio de Janeiro for the 2016
Olympics. If Chicago doesn't land the games, the city says it will still try to
develop the land.
The IOC will pick a host city in October in 2009.
