The first actual sign of progress over the seemingly controversial hosting of the beach volleyball competition in the 2028 Olympics will be seen in Tuesday’s City Council meeting in the form of an Item 7 Study Session discussion.
Back in July, the Los Angeles Olympic Committee announced more than a dozen venue assignments for the 2028 Olympic games in the City of Los Angeles and neighboring cities of Carson and Long Beach. However, Santa Monica was noticeably absent from the list, but according to Olympic officials at that time, plans for the beach venue were still very much alive.
The City of Los Angeles is the actual host of the games and will be the center of activity but the Committee has said it plans to leverage a variety of regional venues to reduce the need for construction and maximize the quality of the games.
Since then, rumor has been rife, with speculation mounting as to what exactly was holding up the confirmation of Santa Monica as a venue. And it appears to be about the economics of hosting such an event.
According to the staff report, “City staff has engaged in extensive negotiations with LA28 to secure this honor, and a total of four agreements must be executed to formalize Santa Monica’s participation. The Games Agreement is the first of these four agreements and is especially critical because it lays the foundation and framework for all future agreements.”
The Agreement states that LA28 is to provide reimbursement to the City for certain services and economic losses, assuming LA28 has revenues available. The staff report states that a fiscal impact study conducted by HR&A Advisors projects that if the City does indeed opt to host beach volleyball, it could result in a loss of approximately $1.45 million.
The study forecasts that the City would be responsible for $15.54 million in estimated costs to prepare for and host the Olympic games. If the City were to choose to not host beach volleyball, it stands to gain $10.65 million in fiscal benefits. The City would only generate $2.79 million in additional revenues if it hosted Olympic events, but would face significantly higher costs. Overall, hosting beach volleyball could translate to a total net loss to the City of $12.1 million.
However, the exact scope of services or level of reimbursement is not actually defined in the Agreement, thus requiring the City to commit to providing services without understanding the required service levels or costs, which will be defined in subsequent agreements.
Negotiations on the provision of services and other significant terms have faced challenges, particularly around the lack of community benefits offered by LA28, restrictions on revenue generating opportunities for the City, and other potential financial and legal risks.
“Santa Monica is an iconic destination known worldwide. And as the birthplace of the modern sport of beach volleyball, there is no better place to host the competition for the 2028 Summer Olympics,” City Manager David White said in a statement. “The city team has worked hard to negotiate a deal that works for Santa Monica, and the study session is a critical opportunity for the City Council and the public to provide input on what’s best for our unique community.”
If the council gives direction to move forward, a finalized Games Agreement would come back for a final vote at a future meeting. Exact terms, conditions, costs and operational details would be negotiated in three additional future agreements.
There are sure to be compelling arguments both for and against in Tuesday’s meeting, which starts at 5:30pm, together with considerable public input on this, making for an extremely interesting evening.
scott.snowden@smdp.com
