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LA City Council president seeks guarantee that LA businesses will get a piece of the Olympics pie
The 2028 Olympics and Paralympics in Los Angeles will cost billions to put on, but there are currently no guarantees that any of that business will go to companies or small businesses in the city of Los Angeles.
That's a problem for local officials, who point out that the city of L.A. is the host and financial backer of the Games and should therefore reap the benefits.
Olympic contracts for things like IT services, cleaning and construction for the Games are worth up to $4 billion, according to LA28. L.A. City Council President Marqueece Harris-Dawson filed a motion Wednesday asking the private Olympics organizing committee LA28 to commit to giving some of those contracts to businesses in the city specifically.
The move responds to critiques of LA28's procurement plan, which council members in April warned could end up leaving out the city of Los Angeles entirely.
LA28 says it's aiming to keep 75% of its spending in the Greater L.A. area, and put 25% towards small businesses. Its procurement plan pledges to prioritize "hyperlocal" businesses in the city of L.A., but makes no explicit promises. Instead, it identifies "local" as anywhere in L.A., Orange, Riverside, San Bernardino and Ventura counties.
Harris-Dawson's motion would direct city staff to request LA28 go further, developing an L.A.-specific spending commitment.
"There is no assurance that Olympic-related spending will meaningfully benefit Los Angeles businesses, workers, and communities in proportion to the City's role as host," the motion reads in part.
The motion still needs to get through council, but there are indications that it will meet an unwilling LA28.
LA28 CEO Reynold Hoover told the city council earlier this year that organizers would prioritize city businesses, but that he would not commit to a plan that would limit LA28's financial options.
"If I focus solely, first and foremost, on the city of L.A. for small business, then I am artificially reducing the pool of competition, placing greater risk on the city taxpayers and placing greater risk on the backstop of the city of L.A.," Hoover said.
The motion reflects the latest way city leaders are trying to limit risk and increase rewards for Los Angeles, which is on the hook for a potentially large amount of money if the 2028 Olympics and Paralympics are a financial failure.