Uncertainties around Olympic legacy

Uncertainties remain around the delivery of the Olympic Park legacy as a deal has still not been reached between the Mayor and the Government over responsibility for the site after the Games, the London Assembly has heard.

The Assembly’s Budget and Performance Committee was told that the Mayor and Government have yet to agree on the transfer of ownership of the Olympic Park land from the London Development Agency (LDA) to the Olympic Park Legacy Company (OPLC). This is despite the fact that the agreement was originally hoped to be made by October 2009 and six weeks ago the Committee was told a deal was imminent.

Neale Coleman, Director of London 2012 Coordination, today told the Committee that, although the parties had not reached a deal, he hoped agreement would be reached shortly and there was a strong commitment to try to do so before a General Election.

Delays to the deal have led to the LDA taking on additional borrowing and Peter Bishop, Deputy Chief Executive of the LDA, said it was budgeting £13.4 million for the next financial year to cover interest payments. The Committee also heard that, if and when an agreement is reached, there could still be a gap of around £300 million between the LDA’s debt, resulting from the purchase and preparation of the land, and what it receives for its sale to the OPLC.

John Biggs, AM, Chairman of the Budget and Performance Committee, said: “We hope the issue of the transfer of the Olympic Park will be resolved sooner rather than later.

“Whatever happens, the LDA will probably be left with substantial borrowing after the land sale, but this could be a sound investment if one of the UK’s most economically disadvantaged areas is successfully regenerated.

“For the site’s legacy to be a real success, both shareholders in the OPLC - the Mayor and Government - must continue to see the regeneration in and around the area of the Olympic Park as a long-term investment.”