IOC Promises Cost Savings After Big Spend on Olympic House

(ATR) The IOC says its lavish new headquarters opening in June is within the $200 million budget – and it’s money well spent.

Final touches are being put on fit-out of the five-story, 17-meters high Olympic House in Vidy on the shores of Lake Geneva in Lausanne. The new building will bring all 600 IOC employees, currently spread around four different offices in Lausanne, together on one site.

Lausanne mayor Grégoire Junod joined Danish architects 3XN and Marie Sallois, IOC director of corporate development, brand and sustainability, in updating reporters on progress of the new HQ at a briefing Tuesday.

Asked by Around the Rings if there were any cost overruns on the project that has been under construction since summer 2016, Sallois insisted the IOC was "well under" its initial estimate. The project is now costed at about CHF 145 million ($146 million). This includes construction work, equipment and relocation of staff.

Sallois said that despite the challenges of dealing with Roman remains and "many things we didn’t expect", the project was on budget. "We have been challenging each other constantly," she said of the IOC’s collaboration with the architecture firm.

"It’s about a cost optimization in the long run in operations… so it makes sense," she said.

"Like every other organization we optimize our operation and by doing that we optimize our costs and this is a solution to do so," she added, pointing to the oft-quoted IOC line that it distributes over 90 percent of its revenues to organizations throughout the Olympic Movement.

"We spend money on renting today. We had the choice of continuing to rent, and this is cash out with no asset, or invest in an asset that you will own."

She told the media briefing the objective of the HQ’s design was to be "iconic without being ostentatious".

Counting the Cost

Sallois dismissed any naysayers who might balk at the tens of millions invested in the all bells and whistles HQ at a time when WADA is in crisis and would benefit from a greater contribution from the IOC to tackle the fight against doping.

"This is why we did a feasibility study in 2012, it really makes sense from an operational and financial standpoint."

The IOC has said this will result in "substantial long-term savings, increased working efficiency and energy conservation".

Asked by Around the Rings, approximately how much the IOC would cut costs, Sallois said the estimate was the Olympic governing body would save about CHF 80 million ($80.5 million) over 50 years.

Olympic House has a footprint of 18,000 square meters. Hospitality functions will be housed on the ground floor, with three levels of offices and a basement for underground parking.

Notable design elements include the five Olympic rings forming the staircase and spine of the building. The roof is shaped like a dove.

The IOC’s commitment to sustainability is showcased by the HQ being mainly powered by renewable energy, recycling water from Lake Geneva and use of solar panels, which will help reduce energy consumption by around 35 percent.

Sallois, who has led the project for the past six years, said the IOC had also worked with its TOP partners in the construction process, including Dow which provided material for the building’s exterior.

No Compromise

With an eye on the future, the design of the IOC’s new pad and its environs adapts to future needs, including the growing use of electric bikes and cars.

"We are super proud we didn’t compromise on any of them [the objectives]," she said.

Jan Ammundsen, senior partner and head of design at architects 3XN, told reporters it had been a "long, interesting and hard process" to deliver the design that had flexibility "of what the IOC is now and how it will change as an organization over time".

An important part of the design was to optimize daylight throughout the new building and for "respectful integration in the park" on the shores of the lake.

"What we were working towards and what we wanted to achieve is pretty much what you see here," he said.

While the official opening date is Olympic Day on June 23, Sallois and the first group of 50 IOC staff will move into the headquarters on May 6. Another 500 or more will relocate on May 26.

IOC president Thomas Bach’s office is located on the third floor of Olympic House. Among a series of spaces and meeting rooms, there is one dedicated to the work of the executive board. The IOC said the media center was close to this room and might offer better access to board members.

Reported by Mark Bissonin Lausanne.

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