LA 2028, the City of Los Angeles and the United States Olympic Committee released a new memorandum of understanding in preparation for the 2028 Games in a bid to seek formal approval on Friday.
Los Angeles was granted the right to stage the 2028 Olympics after cutting a deal with Paris to step aside in the race for the 2024 Games.
The move, which was encouraged by the International Olympic Committee, means that Los Angeles is required to tweak plans for the Olympics in order to receive final backing from the City Council.
The City Council had already given unanimous support to the LA 2024 bid and is expected to back 2028 at a meeting on Friday.
However a city report released last week by the Office of the City Administrative Officer and Office of the Chief Legislative Analyst outlined risks in shifting to 2028.
"The additional four years add uncertainty concerning future economic and political conditions," the report said.
"Although such uncertainty exists with the 2024 Olympic Games which will occur in seven years, the four-year extension increases those uncertainties."
In addition to the lack of an independent analysis of a formal budget for 2028, another potential risk factor is that part of the '24 deal included a $250 million guarantee from the state of California to cover possible cost overruns.
With the legislature in recess, it is impossible to immediately guarantee they will approve the same amount for 2028.
However the memorandum of understanding released Wednesday said the city would be given additional provisions to guard against financial risk.
The memo would provide City representation on the LA 2028 Board of Directors, gives the City consent rights over significant venue changes within the City of Los Angeles and $270 million of the projected $500 million Games budget contingency and more frequent LA 2028 presentations and updates to the City Council in the first three years.
"My top priorities in this process are to protect Los Angeles taxpayers and create new opportunities for young Angelenos to play sports, and be healthy," Los Angeles mayor Eric Garcetti said.
"This new MOU ensures that our City priorities remain front-and-center in LA 2028’s preparations for the Games. Under the City's leadership, we can be sure that the up to $160 million we will receive to fund youth sports programs from LA 2028 will be put to the best, most impactful use."
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