WATERLOO REGION — Local municipalities will need to put millions on the line and be responsible for any operating deficits if they are successful in a bid for the 2021 Canada Summer Games.

Waterloo and Kitchener councils voted unanimously on Monday to enter Phase 2 of the bid process. If Cambridge council votes in favour Tuesday, Waterloo Region will be one step closer to hosting the major sporting event.

"I believe that if we're successful in this bid … that the outcome will far exceed the investment that you're looking for us to bring to the table tonight," Waterloo Coun. Diane Freeman said.

"Let's close this deal," Coun. Melissa Durrell said.

In Kitchener, councillors Yvonne Fernandes and Zyg Janecki said they would reluctantly support the games at an afternoon meeting, with concerns over the cost.

"It's nice to have … but the nice to have is also competing with need to have, which is our infrastructure," Janecki said.

Staff say economic development impact could be $100 million over 18 days in August 2021.

"I think it has minimal risks with great rewards. … It's a great way for us to showcase our community," Kitchener Coun. Kelly Galloway-Sealock said.

Each council is expected to provide $20,000 for the second phase of bidding.

The games feature more than a dozen sports and would bring 3,500 athletes to the region along with 6,000 volunteers. The Canada Summer Games are held every two years with a rotation between summer and winter games.

Tim Jackson, a member of the bid committee, talked legacy.

"You're sitting today looking at a once-in-a-generation opportunity," he told Waterloo politicians.

About 35 local sport venues have been identified for the games.

Should this region beat out Sudbury, Niagara and Ottawa for the bid on March 31, 2017, Cambridge, Kitchener and Waterloo will be asked to undersign any operating deficit the local games incur and commit millions.

According to a Waterloo staff report the finances would play out like this:

• The event has a history of net zero or surplus financial results, but the estimated financial risk to the local cities has been calculated at about $6.3 million.

• Any surplus would go into a legacy fund to support future sport event hosting.

• Never have the Games incurred a loss.

• The federal and provincial governments will commit $3 million each toward capital improvements of local facilities necessary to meet Summer Games standards.

• Cambridge, Kitchener and Waterloo would be required to contribute a minimum of $1 million each toward capital improvements.

• The federal and provincial governments will each provide about $7.4 million toward operating costs.

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• Historically an additional $11.6 million in operating costs have been required which could come in the form of national level sponsorships gained by the Canada Games Council, fundraising by the local host society, ticket and merchandise sales and cash or in-kind contributions from municipalities and sports organizations

• Cities would also be responsible for $880,000 for a transfer of knowledge fee and rights fee.

The deadline for the second phase of bidding is Jan. 31.