EXECUTIVE SUMMARY

The Olympic and Paralympic Games would accelerate transportation improvements, create jobs, and

produce thousands of new units of housing for Greater Boston while producing a surplus and

minimizing risks to taxpayers under an updated plan for the Games announced on June 29, 2015 by

the Boston 2024 Partnership, the privately funded group focused on bringing the Olympic and

Paralympic Games to the United States in 2024.

After conducting comprehensive due diligence and consulting numerous experts, Boston 2024 is

sharing the latest information about the process, venues, and plan for the Boston 2024

Partnership. This executive summary provides an overview of the data, facts, and key points addressed

in the updated bid plan. The bottom line is that while no project is ever completely without risk, this

fact-based analysis shows that the Games represent an historic economic development opportunity for

New England that we may not see again.

In order to determine the viability of Boston as a host of the Games, it is important to provide context

on the history of modern Olympic and Paralympic Games. Past experiences help Boston develop a bid

that seizes opportunities and minimizes risks. There is no doubt that hosting the Olympic and

Paralympic Games is a great privilege. It also comes with its share of risks, as any big opportunity

does. Critics will note that cities that publicly fund mega-events can face potential cost overruns in the

lead up to the event and underutilized facilities following the event. However, history has proven that

fiscally responsible approaches to running major event operations, like the Olympic and Paralympic

Games, do result in generating operating surpluses, and, more important, creating long-term benefits

that advance a citys economic progress for years to come.

In fact, the U.S. cities that hosted the Games during the past 30 years are case studies for how mega-

events can be run successfully for their cities, for their citizens, and for all the constituents who

benefited from the experience. There is a common theme in all three cases: Los Angeles in 1984,

Atlanta in 1996, and Salt Lake City in 2002 were privately funded, which required extensive fiscal

discipline, ensuring that no expense could be made without generating revenue to support it. Each of

these U.S. cities delivered a fantastic experience for the athletes, the Olympic family, national and

international spectators, and the local community while producing a financial surplus that was

invested back into the city, supporting legacies that continue to enrich communities. Los Angeles

surplus was $232.5 million. Atlantas surplus was $10 million. Salt Lake Citys surplus was $101 million.

These experiences inform Boston 2024s plans for showcasing the feasibility of hosting the 2024

Olympic and Paralympic Games in ways that are cost effective, sustainable, responsible and legacy

building. Through extensive discussions with leaders from past host cities, we have learned about the

unifying spirit the Games bring to communities, the honor of welcoming the world to the citys front

door, the inspiration of high-performing athletes, and the undeniable lasting benefits that enrich a city

for generations to come. We heard about the powerful effect of this once-in-a-lifetime

experience. And, in the greatest endorsement of all, we heard from leaders in the cities that they would

do it all over if they had a chance. In fact, LA has bid for the Games, including in the race to represent

the U.S. for the 2024 Games, an honor that was ultimately awarded to Boston.

After extensive due diligence, which has included risk assessments, research, financial modeling and

independent verification of data, projections, and assumptions we have determined that there are

four major reasons why Boston can achieve a cash flow positive Games with minimal economic risk

and enormous upside and potential for positive, long lasting economic gains for those who live here.

1) Agenda 2020: The International Olympic Committees recently released Agenda 2020 calls

for cities to focus on fiscal responsibility, sustainability, and legacy benefits in bidding for and

hosting the Games. Agenda 2020 encourages the use of temporary and existing venues and

eschews the past trend toward grand structures with little to no legacy value. This series of

reforms is closely aligned with Bostons DNA as a college town with a deep-rooted sports

culture, teeming with great existing venues on and off university campuses. Our bid is a fiscally

conservative one that relies on the usage of existing venues. In fact, as it stands right now, 63%

of our proposed venues exist already and require modest or no adaptations for the Games. We

are the first U.S. city to bid for the Games in the post Agenda 2020 era, and these reforms have

been a critical component to stage a high quality but cost effective Games.

2) Exponential Growth in TV, Ticketing, and Sponsorship Revenues: The Olympic and

Paralympic Games are the premiere sporting event in the world. Watched by more people than

any other sporting event globally (there were 3.7 billion unique TV viewers of the 2012 Games in

London), Olympic Games revenues have increased exponentially. The growth trend tells a

positive story for any city hosting the Games in 2024. Total revenues (not inflation-adjusted)

for the LA Games in 1984 were $750 million. By 1996, for the Atlanta Games, revenues grew to

$1.7 billion. This trend continues unabated, as revenues projection for the 2020 Games in

Tokyo have just exceeded $4 billion. For a 2024 Games in Boston, those revenues are projected

to reach close to $5 billion. Revenue increases are due to a combination of an increase in TV,

ticketing, and sponsorship revenues. Coupled with the cost moderation measures allowed by

Agenda 2020, we are confident that Boston can stage a Games that will generate a healthy

surplus.

3) Colleges and Universities: Within the Commonwealth of Massachusetts, there are more than

115 colleges and universities. The city of Boston is home to 35 colleges and universities in its

compact footprint. The value provided by these institutions of higher learning is not limited to

the bright minds and ground breaking innovation developing within their labs and classrooms.

It also includes their significant land in the form of open space, dorm rooms, training facilities,

practice fields, and sporting venues. This gives Boston a natural competitive advantage that,

coupled with infrastructure and transportation upgrades, will position us very strongly to

deliver an outstanding athlete and spectator experience in 2024 and reduce the risk of costly

building programs, thereby ensuring significant legacy value post Games.

4) Insurance and Protection: Boston 2024 is developing an insurance plan that has more layers

and higher limits than have been budgeted and proposed than previous bids. In its bid for the

2016 Games, Chicago explored insurance options to mitigate the risks of cost overruns and

reduced revenues. Boston 2024 is allocating up to $126 million in order to significantly mitigate

financial risk. The conservative operating budget provides for the payment of premiums on

layers of insurance covering a broad range of risks. For capital projects, additional insurance will

be required of and funded by contractors and developers. Surety bonds, guaranteeing payment

and performance, will be required on all construction projects. The largest capital projects, the

Athletes Village at Columbia Point and the temporary Olympic stadium at Widett Circle, also

will include so-called capital replacement insurance to cover a potential loss of financing of

developers during construction. Therefore, there are four levels of protection utilizing existing

assets, private capital, elevated insurance coverage, and conservative contingency planning in

the operating budget.

BENEFITS AND OPPORTUNITIES FOR BOSTON AND MASSACHUSETTS

The attached materials outline the unprecedented potential to create a public/private partnership

to catalyze key city and state objectives: jobs creation, tax base expansion, increased housing

inventory, community investment, improved infrastructure and connectivity, improvements to

parks and open spaces, and the elevated visibility for Boston as a world class city.

1. Jobs: Hosting the Games is a major job creation engine for Boston and Massachusetts.

Bringing the Games to Boston will create 4,100 construction jobs each year from 2018 to 2023

and more than 50,000 jobs to support the Games in 2024 (Source: The Boston Foundation). The

Games will also lead to 2,200 job-years in 2025 and beyond to support legacy neighborhoods

and developments.

2. Expanded Tax Base: Tax revenues generated from the expanded development for the

Games would be payable to the City of Boston to make significant new investments.

Currently, Widett Circle generates $857,000 per year in tax revenue for the city. Due to the

redevelopment of Widett Circle jumpstarted by the Games, tax revenues would reach $7 million

in 2030 and grow to $27 million by 2040. In the case of Columbia Point, neither UMass Boston

nor the Boston Teachers Union properties generate tax dollars for the city of Boston. Due to

the development of Columbia Point ignited by the Games, tax revenues would reach $3 million

by 2030 and $5 million in 2040.

3. Housing: Boston 2024 would contribute significantly to the Mayors housing goals for 2030.

At Widett Circle, site of the temporary Olympic stadium, the legacy housing created is

projected to be 4,000 additional apartment units, including at least 520 affordable housing

units, thereby increasing the housing supply and making it easier for people of all income levels

to live in the city. At Columbia Point, site of the Athletes Village, the legacy housing created is

projected to be 3,000 apartment units, including at least 390 affordable housing units and 500

senior housing units, thereby increasing housing supply and making it easier for our most

vulnerable populations to live in the city. In addition, housing for 2,700 students would be built

for UMass Boston, alleviating neighborhood housing pressure, increasing the housing supply

even further, and elevating the Citys only public universitys stature as a residential school.

4. Community Investment: The proposed plan will emphasize investment in underserved

communities and gateway cities.

Workforce Development: As part of the bid for the Games, Boston 2024 will adopt

measurable objectives for employment of residents of underserved communities, then

track our progress and enforce established standards. We will use project labor agreements

to ensure contractors do the same.

Youth Development: Boston 2024 will direct investment to neighborhoods, local parks,

sports clubs, and youth programming based on community input. Private investment in

Sportsmens Tennis and White Stadium will benefit youth in tennis, football, and track and

field programs.

Green Space: In preparing for the Games and in the post-Games transition, private monies

will be used to enhance and expand public parks and recreational fields, including Moakley

Park, Franklin Park, Harambee Park, and Christian Herter Park. In addition, 15 new acres of

permanent park land at Widett Circle will be created.

Economic Opportunities: A key benefit of both bidding for and hosting the Games is the

international spotlight shone on cities outside of Boston, including New Bedford and

Lowell. In addition, a clear and measurable plan will be implemented to ensure minority-,

women- and veteran-owned businesses can participate on equal footing in business

opportunities generated by the Games.

5. Infrastructure and Connectivity: Boston 2024 could catalyze infrastructure development

and greater connectivity between neighborhoods and to the waterfront. Getting ready for

the Games could jump start much-needed and long-discussed infrastructure projects that

would have a tremendous impact on the quality of life for residents, including:

Publicly-funded replacement of Kosciuszko Circle rotary with a signalized intersection

plus extension of Day Street and Columbia Road.

Demonstration of a ferry service from Boston to Quincy near the site of beach volleyball

on Squantum Point Park that could become permanent.

Developer-funded commuter rail station at Widett Circle to serve the Fairmount Line.

In addition, the potential to connect neighborhoods and improve access is significant:

Connection of the South End to South Boston through Widett Circle.

Boston 2024-funded completion and expansion of the Emerald Necklace from Franklin

Park to Columbia Point along Columbia Road as originally intended by Frederick Law

Olmsted.

Public-private investment in safe walking and cycling connections along the Emerald

Necklace as well as a reopened Dorchester Avenue along Fort Point Channel from

South Station to Widett Circle and access from Dorchester/JFK Station to the

waterfront.

Combining the exponential growth in Games revenues, a conservative Games budget, private sector

discipline on project management, and multi-layered insurance to protect against risk, Boston can host

a Games with high rewards and manageable risk for Bostonians. It would be a once in a lifetime

opportunity to deliver decades worth of infrastructure and open space improvements to residents in

just 9 years.

PUBLIC TRANSPORTATION AND INFRASTRUCTURE NEEDS

There are questions about whether Bostons infrastructure can host the Games. Will we have the

transportation infrastructure to handle the athletes, spectators, and residents during the summer of

2024? The short answer is yes, with a caveat that we must move now on improvements that we as a

Commonwealth need regardless of hosting the Games.

After extensive due diligence for bid 2.0, Boston 2024 has determined that transportation

infrastructure improvements fall into two macro categories:

1) Projects that are required to support the MBTAs ridership growth anticipated by 2024, with or without the Games, and that are already planned for and budgeted by the state.

2) Projects that are unfunded yet deemed necessary to meet future neighborhood growth (expanded MBTA stations) and road reconfiguration to address longstanding traffic issues. The Games could go forward without these projects, but the transportation system would be further strained.

We believe that bidding for and hosting the Games can be a catalyst for getting these much-needed

improvements done at long last. Detailed in the plan is a list of these projects. This list includes projects

currently planned and funded by the Commonwealth already, including:

Red Line and Orange Line vehicle procurement,

Commuter Rail vehicle procurement,

Local bus vehicle procurement, and

Signal upgrades for the Green, Orange, and Red Lines,

all of which will increase capacity and greatly improve the daily commute for Massachusetts

residents. The total for these improvements is $1.97 billion.

There is also a list of needed improvements that are not currently planned for by the Commonwealth

and therefore not yet funded, but address MBTA capacity constraints or traffic issues that stunt

economic growth. These include:

Power signal upgrades to the Red and Green Lines, and

Improving Kosciuszko Circle and, as noted, JFK Station,

all of which will increase capacity and improve the daily commute for Massachusetts residents. The

total for these improvements is $775 million.

Finally, there are Olympic-specific improvements that would funded by private capital. These include:

New Commuter Rail station at Widett Circle,

An extension of the Mass Ave. Connector,

The relocation of the Cabot Bus Facility, and

The connection and expansion of A Street.

These projects, too, would improve the commute and quality of life for Massachusetts residents. The

total of these improvements would be $227 million of private dollars.

Boston 2024 is one voice in a chorus that is calling for these improvements to be fast tracked.

Currently, MBTA ridership exceeds maximum policy capacity by 26% at rush hour. Without system

improvements, rush hour demand in 2024 is projected to exceed MBTA policy capacity by 51%, even

without the Olympic and Paralympic Games. After system improvements are made, rush hour demand

during the Games will exceed MBTA policy capacity by only 16% at peak use.

As part of the ongoing and iterative bid process, Boston 2024 will continue its analysis of Olympic

transportation as venue locations are finalized. More specific transit plans will be developed for each

venue based on location and competition schedule.

SECURITY

Safety and security are of paramount importance in planning for and executing any major global event,

and the Games are at the top of that list. After consulting with security experts in both the public and

private sectors, and speaking extensively with those in charge of Londons successful security

operation, Boston 2024 is confident that we can deliver the Olympic and Paralympic Games in a way

that is safe and secure without sacrificing the welcoming and celebratory tone that Boston is known for

and that the Games represent.

Based on significant precedent, Boston 2024 anticipates that the federal government will lead security

for the Games and provide necessary funding. As have past U.S. Games, Boston 2024 expects to be

designated a National Special Security Event (NSSE). The Secret Service would become the lead

agency, in charge of event security. The FBI would take the lead on intelligence and counter terrorism.

FEMA would take the lead on incident response management. Each of these federal agencies would

work closely with state and local authorities to ensure a cohesive and seamless security plan.

Federal funding for security will be required for hosting the Games in Boston, just as it would be for

hosting the Games anywhere in the U.S. The federal government has authorized overtime expenses for

local resources in past NSSEs and we anticipate the same for 2024.

Even nine years out, Boston 2024 has launched a thorough process with security experts to address and

anticipate security needs for the 2024 Games. We have assembled a Security Advisory Committee with

experts from the public and private sectors, chaired by Juliette Kayyem, former Assistant Secretary of

the U.S. Department of Homeland Security.

CONCLUSION

After thousands of hours dedicated to due diligence, community meetings, brainstorming sessions, fact

finding missions, local and international forums, primary and secondary research, and consultations

with the leaders of past bids in the U.S. and abroad, Boston 2024 is confident that the data show that

Boston is highly capable of staging the Olympic and Paralympic Games in a way that will bring lasting

value to the people of Massachusetts. For those who have argued that the discussion about the

Olympics should instead be focused on important issues like housing, education, transportation, and

jobs, we respectfully submit that the Olympics discussion is not a diversion from those issues; it in fact

harnesses the attention of the public to catalyze solutions for them.

Even in the current bid process, communities are coming together to talk about their vision, their goals,

and their hopes for the future. Private enterprise, colleges and universities, government leaders, the

innovation and tech sector, community leaders, and engaged citizens are coming together in

unprecedented ways to discuss problems and identify solutions. Olympic and Paralympic athletes are

already volunteering their time to visit schools, baseball fields, soccer pitches, and basketball courts to

talk to kids about the importance of education and the power of sport. More than 3,500 volunteers

from across the state have formed a new and engaged community of people who want the world to

come to Boston. If Boston wins the bid for the 2024 Games a decision rendered by the IOC two years

from now all of this bid legacy will be amplified, and $5 billion of private investment to fuel economic

development will come to this region leading up to 2024 private money that would not otherwise

come here.

We have looked at the numbers and the numbers work. We have examined the facts and the facts

check out. We have welcomed outside experts to do the same, and they agree. But while the facts are

critical to our bid, they are not the only important factor. Bostons identity as a tried and true sports

town is absolutely central to our bid for the 2024 Games. The soul of world class cities lies within its

cultural institutions, its hometown traditions, and the unity that comes from supporting our sports

teams. Sports unite us. They bond us together. We believe that the Olympic and Paralympic Games

the greatest sporting event in the world will do that for Boston like nothing else can.