Item - 2018.EX30.14

The Executive Committee recommends that:  

1.  City Council request that the Government of Canada and the Province of Ontario provide financial support to host the 2026 Fédération Internationale de Football Association (FIFA)World Cup in Toronto, including a commitment to cover security costs.

2.  Subject to the City Manager negotiating and executing a Multiparty Agreement or other acceptable arrangement confirming financial support from the federal and/or provincial governments that protects the City's interests, City Council authorize the City Manager to negotiate and execute the Bid Agreements for the 2026 Fédération Internationale de Football Association (FIFA)World Cup, on terms and conditions satisfactory to the City Manager and the Interim Chief Financial Officer and in a form satisfactory to the City Solicitor.

The Fédération Internationale de Football Association World Cup is one of, if not the world's premiere international sporting competition. Held every four years, the World Cup is recognized for generating significant economic, cultural and community benefits for its host cities and country, and increasing host cities' profiles on the world stage.

The national soccer associations of Canada, the United States of America and Mexico are leading a joint bid through the United Bid Committee (UBC) to host the 2026 Fédération Internationale de Football Association World Cup in cities across North America. The 2026 Fédération Internationale de Football Association World Cup will be the largest held to date, with a record 48 nations contesting the Cup at 80 matches over a 30-day period. Canada would automatically qualify for the tournament by virtue of being a host nation. Based on current discussions, Canada and Mexico would host 10 games each, with the remainder being played in the United States. The only other country bidding to host the Cup is Morocco.

Toronto has been named as one of four Canadian host city candidates, along with Vancouver, Edmonton and Montreal. 28 other candidate cities in Mexico and the United States are also being considered. It is anticipated that Toronto would host 3-5 games if the bid is successful, and if Toronto is selected by United Bid Committee and Fédération Internationale de Football Association as a host city. The host nation(s) for the 2026 World Cup will be named by Fédération Internationale de Football Association in June 2018, and individual host cities will be selected in 2021.

In order to be considered as a host city in United Bid Committee's bid, the City of Toronto is required to enter into a number of irrevocable agreements including Host City, Stadium and other ancillary agreements (the "Bid Agreements"), by February 5, 2018.

The key reasons for the City to participate in the 2026 Fédération Internationale de Football Association World Cup include the substantial economic and global media impacts of the event; the opportunity for community engagement and legacies, drawing on Toronto's unique diversity; the potential to host the event with very limited financial and other risks due to the way the United Bid Committee bid is being organized with no new facilities, infrastructure or operating guarantee being required; and that it builds on Toronto's successful track record of hosting the world at major events, without most of the impacts on residents since there are few games and sites involved.

There is one major unknown at this stage of the bidding process. The Mayor's Advisory Panel on International Hosting Opportunities is clear that the City must confirm the financial support of the federal and provincial governments prior to making a bid for a "mega event" like the Fédération Internationale de Football Association World Cup. This is essential to mitigate financial risks to the City. While the Canadian Soccer Association and City staff have engaged in initial discussions with the federal and provincial governments, a decision or agreement has not yet been reached on financial support. A major component of this financial support is a provision to cover security costs. In the case of this highly visible and prestigious event, the costs for security cannot be accurately predicted at this time and the City has little control over major aspects of the security system. As such, the City should not proceed with entering a bid in which its financial costs for providing security are unknown or uncapped.

Due to the time sensitive nature of the bid opportunity, it is unlikely that a cost-sharing agreement will be reached prior to United Bid Committee's deadline for Toronto to sign the Bid Agreements and still have an opportunity for Council to then approve. Accordingly, this report recommends that the City's signing of the Bid Agreements be made conditional on confirmation of support from the federal and provincial governments, to be secured through a formal Multiparty Agreement or other acceptable arrangement. If a cost-sharing agreement with other orders of government cannot be reached, the City would either submit documents with caveats around financial support or withdraw from the bidding process.