Introduction
Detroit, Michigan is a unique city boasting of an iconic past, a gloomy present, and a potentially bright future. Once one of America’s largest and most thriving cities because of professional opportunities in the automotive industry, Detroit fell to devastating lows after the loss of thousands of jobs from Ford Motor, General Motors, and Chrysler. Detroit is the 18th overall most populated city in the United States, the largest city in the State of Michigan, and recently became the largest American city to file for bankruptcy. Though the city currently faces a laundry list of problems, I believe that Detroit is fully capable of hosting a successful Olympic Game years from now that could help change the overall condition of the city and enhance the current work that is currently being done. Can Detroit Afford the Costs of the Games? Cost of Olympic Games “From 1968 through 2010, the games had an average sports-related cost of $3.6 billion” which is 3.6 billion dollars more than what Detroit has on hand (Gaines, 2015). However, a large amount of this cost stems from construction of Olympic Venues and requirements. Because of Detroit’s close proximity to water and its current infrastructure for sport, the city may be able to host an Olympic game that does not deviate much from the $3.6 billion average. Detroit’s biggest challenge will be ensuring that there is enough public transportation to handle the massive crowd of spectators that the Olympic games would bring into the city. However, these costs would be significantly lower than the more recent bids that have exceeded over $10 billion (Gaines, 2015). Detroit’s Current Financial Condition Detroit has had financial problems for years and is currently looking to find new ways to revamp their once thriving economy. Over a year ago, Detroit declared for bankruptcy, On Nov. 7, 2014, federal bankruptcy Judge Steven Rhodes gave a green light for Detroit's government to cut more than $7 billion in unsecured liabilities and pour $1.4 billion over 10 years into basic services to rehabilitate the city reeling from a decades-long population exodus, disinvestment and cash drain. At one time, the city's liabilities were estimated at more than $18 billion before creditors and pension holders took a financial haircut (Dolan, 2015). Knowing this, it is impossible to even consider that Detroit could hold the games alone without taking on a massive amount of debt. The bankruptcy of the city, the current condition of public schools and the educational system, and high crime rates should indeed get needed financial help before even considering hosting an Olympic game. However, Detroit does not have to fund the games at all if all options to finance are examined and used in planning for the games. Other Options to Finance The lack of revenue in Detroit may be the biggest turn off to anyone entertaining the idea of hosting the Olympic games in Detroit. However, the burden of financing the games would not be one that the city has to carry alone, if at all. The use of private investors …show more content…
This practice is common; London’s Olympic Village, East Village, was built in an area in need of redevelopment. East Village boasted having “some of the best transport connections in London, and the added bonus of two Olympic-sized pools, a state-of-the-art velodrome and bike park, an almost two-million-square-foot shopping mall, and a cutting-edge health center” in which 60% of all apartments were available for rent (Dunmall, …show more content…
The city has plans to use millions in aid remove blight on a larger scale in which could clear the area needed to build this massive project. By hosting the Olympic games, Detroit essentially accomplishes two goals with one event: establishing the city as an international tourist destination for economic gain and redevelopment of area to attract new residents from higher financial brackets. Because the IOC has requirements on how close the Olympic village must be located in relation to other Olympic Venues (majority of Detroit’s venues that could be used for the Olympic games are located in the downtown area), these future apartments would add new housing in a prime location for upper class, middle class, low income, and students at the various universes operating within the city and opportunities to see new businesses
Detroit, Michigan is a unique city boasting of an iconic past, a gloomy present, and a potentially bright future. Once one of America’s largest and most thriving cities because of professional opportunities in the automotive industry, Detroit fell to devastating lows after the loss of thousands of jobs from Ford Motor, General Motors, and Chrysler. Detroit is the 18th overall most populated city in the United States, the largest city in the State of Michigan, and recently became the largest American city to file for bankruptcy. Though the city currently faces a laundry list of problems, I believe that Detroit is fully capable of hosting a successful Olympic Game years from now that could help change the overall condition of the city and enhance the current work that is currently being done. Can Detroit Afford the Costs of the Games? Cost of Olympic Games “From 1968 through 2010, the games had an average sports-related cost of $3.6 billion” which is 3.6 billion dollars more than what Detroit has on hand (Gaines, 2015). However, a large amount of this cost stems from construction of Olympic Venues and requirements. Because of Detroit’s close proximity to water and its current infrastructure for sport, the city may be able to host an Olympic game that does not deviate much from the $3.6 billion average. Detroit’s biggest challenge will be ensuring that there is enough public transportation to handle the massive crowd of spectators that the Olympic games would bring into the city. However, these costs would be significantly lower than the more recent bids that have exceeded over $10 billion (Gaines, 2015). Detroit’s Current Financial Condition Detroit has had financial problems for years and is currently looking to find new ways to revamp their once thriving economy. Over a year ago, Detroit declared for bankruptcy, On Nov. 7, 2014, federal bankruptcy Judge Steven Rhodes gave a green light for Detroit's government to cut more than $7 billion in unsecured liabilities and pour $1.4 billion over 10 years into basic services to rehabilitate the city reeling from a decades-long population exodus, disinvestment and cash drain. At one time, the city's liabilities were estimated at more than $18 billion before creditors and pension holders took a financial haircut (Dolan, 2015). Knowing this, it is impossible to even consider that Detroit could hold the games alone without taking on a massive amount of debt. The bankruptcy of the city, the current condition of public schools and the educational system, and high crime rates should indeed get needed financial help before even considering hosting an Olympic game. However, Detroit does not have to fund the games at all if all options to finance are examined and used in planning for the games. Other Options to Finance The lack of revenue in Detroit may be the biggest turn off to anyone entertaining the idea of hosting the Olympic games in Detroit. However, the burden of financing the games would not be one that the city has to carry alone, if at all. The use of private investors …show more content…
This practice is common; London’s Olympic Village, East Village, was built in an area in need of redevelopment. East Village boasted having “some of the best transport connections in London, and the added bonus of two Olympic-sized pools, a state-of-the-art velodrome and bike park, an almost two-million-square-foot shopping mall, and a cutting-edge health center” in which 60% of all apartments were available for rent (Dunmall, …show more content…
The city has plans to use millions in aid remove blight on a larger scale in which could clear the area needed to build this massive project. By hosting the Olympic games, Detroit essentially accomplishes two goals with one event: establishing the city as an international tourist destination for economic gain and redevelopment of area to attract new residents from higher financial brackets. Because the IOC has requirements on how close the Olympic village must be located in relation to other Olympic Venues (majority of Detroit’s venues that could be used for the Olympic games are located in the downtown area), these future apartments would add new housing in a prime location for upper class, middle class, low income, and students at the various universes operating within the city and opportunities to see new businesses