los_angeles_2024_bid_city_logoLA 2024, the group bidding to bring the Olympic and Paralympic Summer Games to Los Angeles, has reached a deal with the International Olympic Committee to host the Games in 2028. If the plan is approved by the Los Angeles City Council, the U.S Olympic Committee and the IOC as expected, it would leave Paris as the host city for 2024.

Under the terms of a host city contract agreed to between LA 2024 and the IOC, the IOC will advance $1.8 billion to the Los Angeles bid committee for the planning, organizing, financing and staging of the Games. Under terms of the deal, up to $160 million can be used by the bid committee to develop youth and sport-oriented activities to be carried out in the years leading up to the Games. The IOC’s payment also has potential to exceed $2 billion, based on the estimated value of renewing existing sponsor agreements and potential new marketing agreements.

The Los Angeles City Council and the U.S. Olympic Committee board of directors are expected to review the terms of the contract in August. From there, Los Angeles, Paris and the IOC are expected to enter a tripartite agreement that will clear the way for an IOC approval for 2024 and 2028 at its next session, which is September 13 in Lima, Peru.

The announcement comes weeks after the IOC paved the way for the 2024 and 2028 Games to be awarded at once, a rare move for the IOC, which traditionally has awarded one event at a time. Los Angeles and Paris were the only cities remaining for 2024 in a long process that saw several other major cities, including Rome and Hamburg, drop out of contention.

“This is a historic day for Los Angeles, for the United States and for the Olympic and Paralympic movements around the world,” Los Angeles Mayor Eric Garcetti said. “Today, we take a major step toward bringing the Games back to our city for the first time in a generation and begin a new chapter in Los Angeles’ timeless Olympic story. This agreement with the IOC will allow us to seed a legacy of hope and opportunity that will lift up every community in Los Angeles—not in 11 years’ time, but starting now and continuing in the years leading up to the Games. LA 2028 will kick-start our drive to make L.A. the healthiest city in America, by making youth sports more affordable and accessible than ever before.”

“The IOC welcomes this decision of the Los Angeles Olympic and Paralympic bid committee,” said IOC President Thomas Bach. “They presented a strong and enthusiastic candidature that embraces the Olympic Agenda 2020 sustainability priorities by incorporating existing facilities and encouraging the engagement of more youth in the Olympic Movement. Therefore, we are very happy that as part of this host city contract, we are able to expand the impact of city youth sports programming and encourage the healthy lifestyle of Angelenos for the next 11 years. We are very confident that we can reach a tripartite agreement under the leadership of the IOC with L.A. and Paris in August, creating a win-win-win situation for all three partners.”