The Village project will provide hundreds of jobs during remediation, demolition and deconstruction of several existing buildings on the property, which is set to begin this summer, in preparation for construction of new buildings expected to begin in 2012.

The City of Chicago is buying the Village site for $86 million (£52.6 million).

 

As the sale is being financed by the seller of the property, the city is not required to make any payments to the seller for five years or to pay the full purchase price for 15 years.

 

The city plans to sell the property to private developers who will proceed with construction.

 

About a dozen development teams have expressed interest in participating in the project.

Amenities planned for the athletes at the Village if Chicago are awarded the Games include a private beach, 50 metre swimming pool, lakefront fitness area and open-air amphitheater for live performances.

 

A new promenade will provide direct lakefront access for athletes and, after the Games, for residents.

 

Pat Ryan, the chairman and chief executive of Chicago 2016, said: “The Games represent a once-in-a-lifetime opportunity for economic growth and social progress in our city.

 

"The Olympic Village is a key component of that opportunity.”

 

If Chicago is selected as the 2016 Host City , the Olympic Village will be home for 10,500 athletes and 6,000 team officials.

 

Because of the development’s strategic location and its importance to the city’s plan for regeneration of the near South Side, it will go forward whether or not Chicago is chosen to host the Games by the International Olympic Committee on October 2 at its Session in Copenhagen when they will be up against Madrid, Rio de Janeiro and Tokyo.

Ninety percent of athletes living in the Village would be able to reach their training and competition venues in 15 minutes or less, officials claim.

 

The short trips would minimise the stress of commuting for the Games participants, they said.

Ryan said: “The Olympic Village will be a world-class development that will provide an amazing experience for the athletes who come to Chicago from around the globe.

 

"We are also very proud because it will leave our city with a guaranteed legacy of our bi - a new residential and retail community that ultimately will benefit the people who live in the city.

 

"We also believe it will provide a big boost for redevelopment in nearby neighbourhoods.”

The site for the Village, the campus of the closed Michael Reese Hospital, is just south of downtown and steps away from the Lake Michigan shoreline and McCormick Place, which would be home to 11 Olympic and eight Paralympic sports as well as the International Broadcast Center (IBC) and the Main Press Center (MPC).