Managing Olympic Venues Simon Darcy & Tracy Taylor


Increasing role of public-private partnerships



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Increasing role of public-private partnerships


Across the globe there has been an increasing involvement in developing public-private partnerships between host city organising committees and private sector development. Olympic Stadia are one type of venue where public-private partnerships have been instigated with the private sector. While a public private partnerships premise is to bring public money and private money together for a infrastructure project that benefits both sectors, these arrangements are still have a cultural context. For example, this was evident in China for the development of the Beijing Olympic Stadium, the Bird's Nest, but with the private side being more complex with public, blended public-private and some fully private organisations being involved .
One of the most studied examples of a PPP in relation to an Olympic venue was Stadium Australia, the main stadium of the Sydney 2000 Olympic and Paralympic games. It was one of the first major Olympic Stadium where a public-private partnership organised between the New South Wales Government (Sydney was the bid city but the NSW government was the bidding organisation) and Stadium Australia Ltd . The PPP took the form of a build, own, operate and transfer (BOOT) arrangement with the New South Wales State Government where approximately a $600 million build was funded with $100 million of government money together with private sector capital raised through Stadium Australia Group, its partners and a loan of approximately $125 million that subsequently increased to stop $200 million with a shortfall in gold membership sales . The land at Homebush Bay, now Sydney Olympic Park, was provided free of charge to the corporation for the building of the venue. Stadium Australia built the venue, owned the venue for a 30 year lease, paraded the venue for that time and after 30 years will transfer the ownership of the venue back to the New South Wales Government. The contracted arrangement (there were some 90 contracts identifying array of management issues ) between the parties includes an ongoing maintenance agreement of $143 million for continual asset management over the 30 year life of the lease.
Asset management is an important consideration of any venue where ongoing maintenance is essential in maintaining the integrity of the venue over its life cycle. This includes broader strategic asset management of the overall presentation of the venue, upkeep of the seating, field of play, corporate boxes, electronic security, ticketing and lighting to name a few. As important is the day to day maintenance of the venue including cleaning, catering, security, transport and traffic, staff training and recruitment. Without such a contract and clause, the venue would suffer the fate of many venues run by private sector management companies where maintenance is not incorporated into the overall asset management plan and budgeting, this results in a continual decline in the presentation of the venue that ends up requiring too large of the capital injection for organisations to make after years of decline.
The other area where public-private partnerships improved successful is in the development of the Olympic villages.

Sustainability and the Green games philosophy


Sydney 2000 became the first games to publically and officially recognise the importance of sustainability issues. The “Green Games” predominantly sought to bring environmental sustainability to the games planning processes . However, this was not without controversy with many critics suggesting that this initiative was more about managing perceptions of having a Green games than developing green game practices . A commitment to sustainability issues, with a focus on environmental sustainability in particular, has been taken up to varying degrees at the summer Games in Athens 2004 and Beijing 2008 . Beyer (2006) suggests that Beijing 2008 may have had a significant effect on the Chinese government's attitude towards environmental issues and ongoing development of sustainable technologies.
The Vancouver Winter Games
Given the globalised nature of games bidding, sustainable development principles must negotiate the political and economic contexts. As suggests the Sydney experience provided the opportunity for new environmental benchmarks, broaching changed business attitudes, exposure of the community to these ideas and the bringing together of Olympic stakeholders with environmental NGOs. The importance of Olympic, green and corporate stakeholders understanding each other's perspectives cannot be underestimated . Yet, globalised economic systems bring pressure on the host cities that may constrain the implementation of the green agendas beyond tokenistic inclusions. These perceptions clouded the Sydney experience but given the state of the environment at the Sydney Olympic Park site prior to the games being regarded as one of the most toxic sites in the southern hemisphere , it could be suggested that the environmental remediation alone is a lasting green legacy.
In relation to the legacy notion, the IOC initiated a collaborative project to develop a holistic framework for information-gathering and analysis from future Olympics to enable the benchmarking of Games impacts against a range of economic, social and environmental indicators (IOC 2006, p. 1). The Olympic Games Impact study (OGI) covers holistic effects, including direct and indirect consequences of the Games, on the host city, region or county. The indicators are intended to provide “concrete measurement tools” (IOC 2006, p. 2) against which to measure the impact of the Games. The ‘event indicators’ are variables directly affected by staging of the Games, such as venue construction, and the ‘context indicators’ assess indirect impacts, such as greenhouse gas emissions The OGI is a formal requirement for cities to complete as part of the host city contract, with measurement broken up into four stages over an eleven year event lifecycle, commencing two years before election of the host city and ending two years after the Games has been held: baseline (G-4 years), pre-Games (G-1 years), Games-time (G+1 years) and post-Games (G+3 years). Beijing was the first host city to complete the OGI study, with Vancouver and London then complying with impact assessments under the OGI framework.
Vancouver 2010: ‘Sustainability in Action’ and VANOC’s vision was: A stronger Canada whose spirit is raised by its passion for sport, culture and sustainability. The baseline report for the Vancouver 2010 Winter Olympics identified 146 indicators (VANOC 2007, p. 8). Venue related assessments post-Games, of socio-cultural (So), Economic (Ec) and Environmental impacts (En) reported:

VANOC provided for accessibility in the venues (So47);

the largest share of expenditures was for venue operations and information systems (Ec34); the cost of operating the 2010 Winter Games was over three times the cost of capital investment on venue development (Ec40);

significantly more was spent on major venue construction projects than on renovations; with all venues planned as permanent legacies (Ec40);

Olympic venues were either upgrades to pre-existing event venues or were constructed on previously harvested or industrial lands (En21);

Less than half the venues were in or near protected sites (En22;

Venue construction and upgrades led to an increase in the seating capacity of venues during the Games (En26), while land use for the construction of the Olympic and Paralympic Villages increased the floor area of housing (En24).

Olympic-related energy consumption during the Games was almost an equal share between fossil fuels and renewable sources (En31). Most of the energy (80%) was used for venues and

facilities, especially during the Games.
Venues are an area where the sustainability is firmly embedded from a life-cycle cost perspective across energy, water and customer comfort perspectives as outlined earlier in the chapter. London have also been planning a sustainable Games from the outset, professing a committment to:

use venues already existing in the UK where possible;

only make permanent structures that will have a long-term use after the Games; and

build temporary structures for everything else.


http://www.london2012.com/sustainability]
The London 2012 Sustainability Plan: Towards a One Planet 2012 focuses on five key themes:

1. Climate change: minimising greenhouse gas emissions and ensuring legacy facilities are able to cope with the impacts of climate change.

2. Waste: minimising waste, ensuring no waste is sent to landfill during Games-time, and encouraging the development of new waste processing infrastructure in East London.

3. Biodiversity: minimising the impact of the Games on wildlife and their habitats in and around Games venues,

4. Inclusion: Promoting access for all and celebrating the diversity of London and the UK, creating new employment, training and business opportunities.

5. Healthy living: Inspiring people across the country to take up sport and develop active, healthy and sustainable lifestyles.



Progress to date is reported annually, see London 2012 Sustainability Report: A blueprint for change (2011), and an independent body, the Commission for a Sustainable London 2012, has been set up to monitor and report to the public.

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