A group of local business leaders has agreed to cover any cost overruns that might result from playing host to the 2022 Commonwealth Games in an effort to keep the Victoria bid afloat.
David Black, the bid committee chair and owner of Black Press, has rallied 10 business leaders, including himself, who will commit to covering any cost overruns. Others include Bob Saunders, former owner of Saunders Subaru, former Westshore Rebels president Doug Kobayashi and Ken Taylor, who owns several McDonald’s restaurants.
“We’re taking that cost off the table for taxpayers,” Black said.
“Basically, they are business people who have some financial wherewithal and recognize how good this is for Victoria.”
He hopes this new guarantee will get the bid committee a meeting with Finance Minister Carole James.
The proponents still need the province to commit to investing $400 million to back the Games, and they would need a similar commitment from the federal government.
On Aug. 24, James said her ministry had decided not to back the bid.
“While we appreciate the energy and passion of the bid committee, we cannot make a commitment to support the bid through direct funding, nor can we provide a financial-shortfall guarantee,” James said in a statement. She said the government is focused on its own priorities, such as the overdose crisis and homelessness.
Premier John Horgan underscored James’s message on Tuesday, despite the private-sector offer to cover overruns. “In my discussions with the prime minister, the federal government is looking at 2030, which would be the 100th anniversary of the Commonwealth Games and an ideal opportunity for Canada to come together and support a bid,” he said.
“Now is not the time. I appreciate Mr. Black’s efforts, and if the private sector wants to step up and cover all the costs, that’s up to them.”
Black and his team have until the end of this month to submit their bid book to the Commonwealth Games Federation. Black said he plans to ask the federation to allow the province extra time to make a funding decision.
“We realize the provincial government has a lot ahead of them right now,” Black said.
The federal government has yet to respond on whether it will support a Victoria bid, he said.
Black requested an economic-impact assessment of a Victoria-hosted Games from Brock Smith, a professor at the Peter B. Gustavson School of Business at the University of Victoria.
In his two-page report, Smith said he used the committee’s budget plan, financial data from the 1994 Commonwealth Games in Victoria and other statistics to provide an assessment.
He concluded that provincial sales tax and income tax generated from direct Games expenditures would bring $160 million to the government, and almost $277 million from all Games-related spending. Black said this would significantly reduce the impact on taxpayer contributions.
“I hope the Grumpy Taxpayer$ [organization sees] what a great opportunity this is for our city. It’s Victoria’s turn,” he said. “This will be a catalyst for the housing the province needs.”
Black, who was on the organizing committee for the 1994 Games, helped form a bid committee for 2022 after a slot came up when Durban, South Africa, withdrew its commitment to host for financial reasons.
