Item - 2010.EX45.12

The Executive Committee recommends that:

1.        The City of Toronto work with the Toronto Sport Council to finalize and proceed with a bid to the Sport Alliance of Ontario for Toronto to host the 2012 Ontario Summer Games.

2.         City Council direct that should Toronto be awarded the right to host the 2012 Ontario Summer Games:

a.         authority be granted to the appropriate City officials to receive on the City's behalf a hosting grant of $600,000 from the Ontario Ministry of Health Promotion through the Sport Alliance of Ontario and hold these funds for application to Summer Games expenditures in 2011 and 2012;

b.          the General Manager, Parks Forestry and Recreation provide support and financial management for the Games Organizing Committee; and

c.         the City identify a total of $300,000 for consideration in the 2011 and 2012 Operating Budget processes as direct support to Games related expenditures.

3.         City Council direct that should Toronto be awarded the right to host the 2012 Ontario Summer Games, the General Manager of Parks, Forestry and Recreation be authorized to negotiate, approve and execute, on behalf of the City of Toronto, and in a form satisfactory to the City Solicitor, a Host City Agreement with the Sport Alliance of Ontario which, among other matters, specifies that the General Manager of Parks, Forestry and Recreation will lead the formation of a Games Organizing Committee, in cooperation with the Toronto Sports Council.

4.         City Council direct that conditional upon the signing of a Host City Agreement which provides appropriate City control of the Games' planning, financial and audit functions, the City agree to serve as the financial guarantor for the 2012 Ontario Summer Games should a deficit occur.

5.         City Council direct that the General Manager of Parks, Forestry and Recreation, in consultation with the Deputy City Manager and Chief Financial Officer, and other appropriate staff, ensure that the Host City Agreement and the governance and administrative structures of the Games Organizing Committee provide for appropriate City control of the Games' planning, financial and audit functions, reflecting the City's position as the Games' deficit guarantor.

The Toronto Sports Council (TSC) has initiated a bid with the Sport Alliance of Ontario for Toronto to host the 2012 Ontario Summer Games (OSG). This report seeks Council approval for the City of Toronto to join and proceed with the bid, provide a Games deficit guarantee, and, should the bid be successful, provide a financial contribution and enter into a Host City Agreement and related arrangements which will protect the City's interests and ensure the success of the Games.

The bid guidelines require that the host municipality be the financial guarantor for the Games should a deficit occur. Since 1970 when the Ontario Summer (Youth) Games began, there has never been an operating deficit. The Games Organizing Committee (GOC) is required to work closely with the Sport Alliance of Ontario to ensure that the Games meet all technical and financial requirements. The projected budget to host the OSG in Toronto in 2012 is $1.68 million. Financial contributions confirmed to date include:

i.          a hosting grant of $600,000 from the Ministry of Health Promotion through the Sport Alliance of Ontario;

ii.          participant registration revenue of $210,000; and

iii.         a $65,000 contribution from Tourism Toronto (comprised of $25,000 in cash and $40,000 in-kind).

In order to effectively manage, plan and execute the Games a financial contribution of $300,000 will be required of the City.

Through the TSC, the volunteer sport sector in Toronto has embraced the opportunity to host the 2012 Ontario Summer Games. The theme of the bid is ‘Building the Base’. This theme reflects the need for Toronto to prepare itself for the requirements of hosting the 2015 Pan American and Parapan American Games and to advance the broader goals of:

i.          developing a larger sport volunteer base;

ii.          increasing the number of quality sport participation opportunities for all Torontonians; and

iii.         building stronger, healthier and more liveable communities through sport.

The Ontario Games are the only government-sanctioned multi-sport Games opportunity available to Toronto prior to 2015.