Olympics Not a Money Loser, But a Major Development Catalyst

BOSTON—An updated plan for the Boston 2024 Olympic and Paralympic Games released on Monday projects that the $4.595-billion event could have a surplus of $210 million if revenue estimates are accurate.

The Boston 2024 Partnership released its updated Bid 2.0 plan at the Boston Convention and Exhibition Center that provided more detail to the city's controversial bid for the Olympic Games. The bid would involve the construction of millions of square feet of new development in the city, including a temporary 65,000-seat stadium to be built at Widett Circle, 8,000 units of housing, as well as office and hotel space. The project would create 4,100 full-time construction jobs between 2018-2013 and would employ 54,300 workers in 2024. Another 2,200 positions are expected to be created in the construction, retail, maintenance and hotel sectors in 2025 and beyond.

“The bottom line is that while no project is ever completely without risk, our fact-based analysis shows that the games represent historic economic development opportunities that we may not see again,” says Steve Pagliuca, chairman, Boston 2024 Partnership. “These are opportunities above and beyond the spotlight that will be on Boston for three weeks in the summer of 2024—three weeks in which Boston will lead the world in celebrating humanity's noblest dreams and aspirations. But none of this will come our way without the Games. There is no scenario in which this kind of infrastructure investment, this level of job creation, or this degree of revenue generation otherwise occurs on a similar timetable.”

Erin Murphy, COO of Boston 2024, said that the plan conforms with Boston Mayor Martin J. Walsh's Imagine 2030 initiative to build 53,000 housing units in the next 15 years. She said that the partnership briefed both Mayor Walsh and Massachusetts Gov. Charlie Baker about its updated 2.0 plan.

Bonnie McGilpin, press secretary for Mayor Walsh, said of the updated plan, "The mayor is pleased that Boston 2024 has released additional details on the plan. He has had conversations with Boston 2024 on the direction of the new plan, and looks forward to reviewing the details.”

Boston 2024's Pagliuca characterized the city's bid for the 2024 Olympic games as a “great plan” that “could be the largest economic development opportunity in my lifetime in Boston.”

According to the 2024 Boston documents, venue construction would total $754 million, including $176 million for the Olympic Stadium in Widett Circle and $90 million for the 17,000-bed Athlete's Village at Columbia Point. Upon completion of the games, the Widett Circle region between the South End and South Boston would be the site of a major mixed-use neighborhood and would be renamed Midtown. The Columbia Point section would also be the focal point of a major mixed-use development.

The updated plan also notes a total of $2 billion in transportation infrastructure improvements that are already planned and funded by the Commonwealth of Massachusetts will enhance access to the Olympic Games venues.

The updated plan not only details the necessary new construction and venue enhancements that are planned but also the “legacy” developments that will be built once the games are concluded. In the case of the Widett Circle (“Midtown”) area, Boston 2024 states that a developer will be selected to build and finance the proposed infrastructure, land assemblage and relocation requirements, parking deck and plaza estimated at $1.2 billion. In turn the developer will benefit from moving forward with a project that will be fully zoned and entitled for approximately 8 million square feet of mixed-use development, including residential, hotel, retail and other users. The plan calls for a tax agreement to be in place with the developer to allow for gradual increases in tax levels on the 83-acre site. 

In terms of the Columbia Point site, Boston 2024 states that one or more master developers will be chosen and those firms will be required to finance and build the Athlete's Village and related improvements for the more than 30-acre site. In turn the designated developers will benefit from a project fully zoned and entitled under a master plan that would allow for 4.5 million square feet of mixed-use residential and commercial space and approximately 2,000 parking spaces. The developers of the Midtown and Columbia Point projects will be selected through a competitive process guided by the City of Boston.