* Chicago leads off presentations to Olympic committee members

* Daley ups the ante for 2016 Olympics

Faced with losing the 2016 Summer Games to competing cities offering full government guarantees, Mayor Richard Daley made an about-face Wednesday and said the City of Chicago would sign a contract agreeing to take full financial responsibility for the Games.

So far, the Chicago City Council has approved only a $500 million guarantee against operating losses, while the state has pledged an additional $250 million. These were augmented by a previous pledge to obtain a $500 million insurance policy. The only guarantees in place against construction costs are the insurance policies required of contractors who would build the facilities.

The bid team’s confidence in the plan is partly predicated on its estimated costs rising only modestly because of inflation. But Olympic plans often don’t play out as expected. London’s plan for the 2012 Summer Games has run into serious financial problems, with the original estimate of $4.9 billion ballooning to $13.5 billion, and much of the corporate sponsorship money pledged has evaporated amid the global economic crisis.

Chicago’s guarantee figures — which would rise to as much as $2.5 billion — are a far cry from the full tab projected for hosting the Games. The $4.8 billion projected operating budget for the Games includes a projected surplus of $500 million.

* Time for Daley to come clean on 2016 tab

Three years ago, Mr. Daley said taxpayers wouldn’t spend a dime on luring and running the Olympics, that the private sector would pay for it all, with a big profit likely to boot.

Then, a while later, he said the city would have to guarantee $500 million and the state $250 million — but the money never, ever would be needed because of hordes of Olympic sponsors and an undisclosed insurer that would make up any shortfall.

Wednesday, the ante went up — way up, into the billions.

That means the city — we the taxpayers — will be on the hook for the finances of an event with a projected $3.3-billion operations budget. And on the hook for financing an Olympic Village that will cost another $1 billion or so to build.

* Daley to put taxpayers on hook for Olympic financial losses

* No Olympic-size gamble without full public debate

* Olympic Protestors Worry Taxpayer Money Will Go to Games

* Who pays?

* A way to curb Olympics corruption

* Prices here soar in May, but down 2.4% from a year ago: U.S.

Consumer prices in the Chicago metropolitan area rose 0.9 percent in May over April, three times the national increase, but prices were down 2.4 percent locally from a year ago, the Labor Department said Wednesday.

The month-over-month increase locally was largely because of higher transportation and medical care costs, which rose 3.7 percent and 4.6 percent, respectively.

The increase in transportation costs was because of a 14.7 percent increase in the cost of gasoline. Over the year, gasoline prices were down 36.9 percent, leaving overall transportation costs down 14.2 percent from May 2008, according to the report. Medical care costs were up 7.7 percent from a year earlier.

* Northern Trust repays TARP $1.58B

Chicago’s largest bank announced today that it has repaid the federal government $1.58 billion, repurchasing the preferred shares it issued last fall as part of the Troubled Asset Relief Program, or TARP. Northern is one of 10 big U.S. banks exiting the TARP program today.

* 7 Chrysler plants reopen; not Belvidere

* Auto industry’s problems hitting closer to home

* Illinois makes $47 million on Dillinger film

* No back taxes for permanent seat license buyers

Bears fans who bought permanent seat licenses for the right to buy season tickets at Soldier Field are off the hook for back taxes — at least for now.

At the request of a judge hearing a class-action lawsuit filed by Bears fans, City Hall has agreed to wait for a decision before retroactively collecting Chicago’s nine percent amusement tax from 2,700 PSL holders who were not the original owners.

* City of Chicago suspends plan to tax Bears season ticket licenses

* Official Responds To Claims Of Squandering Money

When asked if he could give us any indication of his whereabouts, Flowers said by phone, “I can’t. I’m out of the area. Not out of state but out of the area.”

Flowers admitted putting almost $7,000 in travel expenses for relatives on his government credit card, but he said, “The money was returned. Those charges were returned to the card.”

And, as for shoddy record-keeping in the office, he blames a former business manager.

“A more competent person should have been brought in a lot earlier,” Flowers said.

* Parking meter contractor’s ‘Green Team’ hits streets in bid to soothe angry drivers

Dozens of newly-hired employees — all wearing green T-shirts, many of them college students — are descending on Chicago neighborhoods where LAZ Parking has installed pay-and-display boxes.

They’re talking to motorists and local merchants. They’re passing out information on how to use the boxes that take credit cards and eliminate the need to carry around plastic bags full of quarters.

* No deal between city and unions on concessions

* No agreement on layoffs between union, city

* Glenview, ComEd argue over paying for lights

* Family of man fatally shot by Chicago cop files lawsuit

* Animal-rights activist settles libel suit with foie gras producer

* Danks Pitches White Sox Over Cubs

John Danks pitched seven shutout innings, Alexei Ramirez homered in the first and the White Sox played some NL-style baseball Wednesday to beat the Cubs 4-1.

* New revelation catches Sosa off base