Written evidence submitted by the Olympic Park Legacy Company (OLL 30)
1. This submission from the Olympic Park Legacy Company:
· Provides background and charts progress in the establishment of the Olympic Park Legacy Company
· Outlines the Company's strategic objectives
· Explains the national, regional and local policy context
· Outlines the Company's goals
· Sets out the Company's delivery phases
· Details land ownership and assets
· Reviews the Company's priorities for 2010/11
· Summarises the Company's funding sources, budget and the transformation budget for the Olympic Park
Background and establishment of the Olympic Park Legacy Company
2. The Olympic Park Legacy Company is a public sector, not-for-profit Company limited by guarantee and established by three founder members: the Mayor of London, Secretary of State for Communities and Local Government, and the Minister for the Olympics. The Mayor owns 50% of the shares and the Government members jointly own the remaining 50% share.
3. The Company aims to create a lasting legacy from the London 2012 Games through developing the Park to become, in time, a new and prosperous part of the city, and was established specifically by its founder members to take forward the legacy from the Olympic Park.
4. The Company carries on from the excellent ground work put in place by the London Development Agency (LDA), which was appointed interim legacy client, following its acquisition of the Olympic Park land. In July 2007 the LDA handed the land over to the Olympic Delivery Authority (ODA) to enable construction of the Olympic Park site to take place, and launched the process for developing the plans for the Park after the Games through the Legacy Masterplan Framework (LMF). As part of this process the LDA conducted extensive consultation to understand the aspirations and expectations of local stakeholders. The LDA also prepared outline business plans for the land and venues to sit along side the LMF. This work has been passed over and is now being progressed by the Olympic Park Legacy Company.
Company was established and Baroness
6. The Company has been working closely with the ODA on arrangements to transform the Olympic Park in preparation for its use after the 2012 Games, and with both the ODA and the Government Olympic Executive (GOE) to prepare a Park operating model. The LMF plans for the development of the Park are being thoroughly reviewed and will be completed by spring 2010. An assessment of the options for the use of the stadium is being conducted and the Company will make a decision on its main use by the end of the financial year. Outreach work with local communities is on going as is close collaboration with the boroughs to support the delivery of convergence objectives under the Strategic Regeneration Framework (SRF).
7. During its formation and set up phase the Company has been supported by the LDA, which has worked with the Company and its members to plan a smooth transfer of its Olympic Park site assets. The LDA has seconded a team of some 50 staff to work with the Company and its Directors during this establishment phase. It is expected that the seconded staff will be transferred to the Company's employment on the completion of the transfer of the LDA's land assets.
8. Baroness Ford is a member of the Olympic Park Regeneration Steering Group which is chaired by the Mayor of London and whose other members are the Minister for the Olympics, the Secretary of State for Communities and Local Government and the Leaders and the Mayors of the five east London host boroughs.
The Company's Strategic Objectives
10. The Olympic Park Legacy Company's strategic objectives, as set by its Founders cover:
· Assisting the Government and the Mayor of London in fulfilling some of the legacy promises made in the bid to host the London 2012 Olympic and Paralympic Games;
· Securing the timely development of the Olympic Park site as a high quality and sustainable mixed community;
· Promoting social, economic and environmental benefits for local communities;
· Securing the long term development and management of the Olympic Park site and venues in ways which provide lasting national and local sporting, cultural, education and leisure benefits and which preserve the site's Olympic heritage;
· Working with partners to contribute to long-term economic growth and prosperity in the wider area;
· Levering in private investment to maximise and provide best value for the public purse; and
· Promoting sustainable development, community involvement and equality of opportunity.
Policy Context - national regional and local
11. The overall vision for the London 2012 Games is "to host an inspirational, safe and Inclusive Olympic and Paralympic Games and leave a sustainable legacy for London and the UK".
12. The Government's legacy plan sets out six legacy promises:
· To make the UK a leading sporting nation
· To transform the heart of East London
· To inspire a generation of young people
· To make the Olympic Park a blueprint for sustainable living
· To develop choices and opportunities for disabled people
· To demonstrate the UK is a creative, inclusive and welcoming place to live in, visit and for business
13. The Mayor of London's draft replacement London Plan states that "the Mayor will work with partners to develop and implement a viable and sustainable legacy for the Olympic and Paralympic Games, to deliver fundamental economic, social and environmental change within East London. This will be London's single most important regeneration project for the next 25 years."
14. The Mayor of London is working with the Host Boroughs to prepare supplementary planning guidance for the Olympic Park and the surrounding area.
15. The five Host Boroughs (Newham, Tower Hamlets, Hackney, Waltham Forest and Greenwich) have led the development of a Strategic Regeneration Framework (SRF, An Olympic legacy for the five host boroughs, Nov 2009) which aims to achieve Convergence - parity of social and economic benefits - between the east London boroughs and the rest of London within 20 years.
16. The Company is developing its plans for supporting the delivery of SRF objectives including creating urban quality, maximising sports legacy, reducing worklessness and delivering homes for all.
The Company's Goals
17. The Company has set out what it aims to achieve:
· Create a new great park for London building on the capital's tradition of parks such as St James' and Hyde Park and its neighbourhood garden squares. The highly active park and premier centre for the enjoyment of sports, culture and recreation will offer a full variety of international, regional, community programmes and cultural events that celebrate the Olympic legacy.
· Build a diverse community with significant levels of homes for families that offers an incomparable lifestyle by the blending best of London's housing traditions with unique access to nature and sporting facilities.
· Be a catalyst for regeneration of East London by ensuring the site is physically, economically and socially interconnected, with the surrounding communities and that local communities are fully engaged.
· Create a place for sports and leisure facilities for elite and amateur athletes, as well as for local schools and people which capitalizes on the Park's Olympic heritage and enhances the Park's social and economic opportunities for people from the neighbourhoods which connect to the Park.
· Create unique employment and business opportunities including a campus type environment attracting a range of industries including research, innovation, media and new enterprises including social enterprise which will all contribute to London's competitive advantage and supporting the regeneration of East London and opportunities for inclusion.
· Create a model of sustainable estate management and land stewardship which provides excellent standards of ongoing management and maintenance over the long term while at the same time providing a good return to the public purse on the significant public investment made.
Land Ownership and Assets
18. The accompanying Land Ownership Plan (Appendix B) illustrating land ownership on the Olympic Park and Stratford City should be referred to throughout this section of the submission.
19. It is a common misconception that the Legacy Company owns all of the land in the Olympic Park. The Company will own only part of it, which is the land currently owned by the LDA. Negotiations on the transfer of land assets from the LDA to the Legacy Company are continuing.
20. The land which is expected to be transferred to the Company includes three of the five permanent venues on the Park; the Olympic Stadium, the Aquatics Centre and the Multi-use Arena.
21. Lea Valley Regional Park Authority (LVRPA) - will own and operate the Velopark and Eton Manor facilities after the Games together with the land around these venues, plus further sporting facilities to the north of the Park.
22. Joint working with LVRPA and other landowners will help to substantially enhance the Company's assets base and the Park's long term attraction to investors and its appeal as a place for people to live, work and play. The other main landowners include:
23. The Olympic Delivery Authority (ODA) - has responsibility for developing the Athlete's Village. The Stratford Village Development Partnership comprising the ODA and a consortium of social housing organisations has been established, which will provide 2,800 homes in the first neighbourhood on the Park following the Games.
24. London and Continental Railways (LCR) - has built and has responsibility for operating the high speed Channel Tunnel Rail Link. LCR has development rights over areas of Stratford City adjacent to the Olympic Park and the Athlete's Village.
25. Westfield - owns the 1.9 million sq ft Stratford City Shopping Centre and the surrounding land which will be used for new hotels, offices, and residential apartments together with new community facilities, a health centre and a specialist Retail Academy.
26. British Waterways (BWB) - own and operate the Lea Navigation Canal and tow path running along the western boundary of the Olympic Park. British Waterways also own the three waterways that run through the South Park including for the most part the adjoining tow paths and will be a key partner in helping to realise the leisure and recreational opportunities proposed for the Park.
27. LB Hackney are the freehold owners of the Hackney Marshes to the north of the Olympic Park, a small area of which, East Marsh, will be taken out of use to provide coach parking and accreditation during the Games. The Council, ODA and LDA are providing significant investment into the remaining sports facilities currently to enable them to accommodate the football facilities being displaced from East Marsh.
28. After the transfer of land from the LDA to the Legacy Company is completed and following the transformation works by the ODA after the Games, the Company's main assets will be:
· 104 hectares of land including Parkland and development platforms.
· The Olympic stadium which has an 80,000 seat capacity during Games time. The Company has put in a place a formal process which will invite interested parties to now come forward with proposals for the Stadium's use after the Games. These will be formally evaluated and the Company aims to complete this process and reach a settled position by the end of the financial year.
· The Aquatics Centre which incorporates two 50 metre swimming pools and a diving pool. The 17,500 seating capacity for the Games will be reduced to provide 2500 permanent seats and with the ability too expand to 3500 temporary seats for use after the Games. Arrangements for the use of the Aquatics Centre in legacy are currently being finalised.
· The Multi-use Arena which is capable of staging a mixture of sporting, cultural and leisure activities and events after the Games will have permanent seating for 6000 with the ability to accommodate a further 1500 temporary seats on the field of play. Arrangements for the use of the Multi-use Arena after the Games are currently being finalised.
· The Main Press Centre which will provide 29,400 sq m of commercial space over five floors. The Company is in discussion with a range of interested parties and will be carrying out a more detailed market testing exercise later this year.
· The International Broadcast Centre comprising the IBC offices (8,800 sq m) arranged over 5 floors and the IBC studios (53,300 sq m) over 2 floors. The Company is currently reviewing the architectural options available to sub divide the building to provide smaller employment studio units.
· A Multi-Storey Car Park which has capacity during the Games for 1,300 cars and 30 coaches.
· Bridges and Roads servicing the site.
· A combined cooling, heating and power plant capable of providing heating for all of the development proposed across the Park.
29. The Company has planned four phases of delivery (Appendix C)
2010 - 2011
Planning, Promotion and Preparation
After the initial company set up during 2009, the Company is now focussing on detailed long term plans for the main venues, site infrastructure and the management and maintenance of the Park after the Games. The Company will also start marketing the site to investors and developers and prepare its programme of events and activities for the Park for both prior to and immediately after the Games.
2011 - 2012
Partnerships and Procurement
This year will be focused on the appointment of partners, service providers and operators and the Company will be working closely with the ODA and LOCOG on the plans for the transformation of the Park after the Games.
2012 - 2013
Reinstatement and Handover
After the Games in 2012, the Company will prepare for taking ownership of the Park in summer 2013 working closely with the ODA as they complete their transformation works on the Park site.
2013 - 2018
Activation and Regeneration
These five years will see the development of neighbourhoods within the former Athlete's Village, work started on other new housing developments and commercial businesses and the delivery of an active events programme of sporting, leisure and cultural activities.
Priorities for 2010/11
30. The Company's priorities for 2010/11 are as follows:
· Land and debt
The Company will continue to work with the Mayor's office, Government and the LDA to resolve land and debt issues.
· Confirm the use for the Main Stadium
The Company will lead a formal process to identify the best use of the Stadium after the Games and aims to reach a settled position by the end of the financial year.
· Agree a strategy for the Media and Broadcast Centre
The Company will finalise its strategy for the marketing and re-use of the buildings.
· Submit the Legacy Masterplan Framework planning application.
The conclusion of this review, which has addressed issues of sport, sustainability, connectivity and family housing, will enable submission of planning applications at the beginning of 2011. The formal developer procurement process will commence at the same time.
· Secure a capital and operating budget
Quantifying the Company's budget requirements and agreeing funding arrangements for these is a critical first year action.
· Develop an operating model for the Park and venues
During 2010/11, the Company will begin procurement of tenants and operators for the venues and the parkland.
· Leverage the Olympic Opportunity
The Company will put in place a programme of events in the Park pre and post Games and develop LOCOG sponsor interest in legacy.
· Secure a partnership agreement with other land owners
The Company will need to work closely with surrounding land owners to achieve its aims.
· Agree how the Company can contribute to achieving convergence
The Company will develop its response to the SRF's convergence objectives as well as to other policy priorities as part of its wider role outside of the Park.
· Adopt the Corporate Plan
and build Company
Funding sources and budget
31. OPLC has been funded in its establishment phase and through to the end of March 2010 by the LDA and one of its Founder Members, CLG. It has on-going operational funding totalling £7.5m available in each of the financial years from 2010/11 to 2012/13, and is currently discussing its capital budget and full operational budgetary needs with these same funders.
32. The ODA has a budget of £350 million for transformation work after the Games. The scope of works which this budget is planned to cover includes:
· Transformation of all permanent venues,
· Removal of temporary venues,
· Delivery of the additional parkland areas,
· Conversion of games roads and construction of new roads and bridges, and
· Conversion of off-site venues such as the Royal Artillery Barracks.
33. Prior to the establishment of the OPLC, work was conducted by the LDA to scope out further works which may be required to make the Park ready for its long term development. The scope of these further works includes such items as:
· IBC/MPC Transformation (including the Gainsborough Bridge and Arena Fields)
· Pavilions, playgrounds and buildings for the Parklands.
· Utilities diversions
· Preparation and management of the development sites
· Removal of accreditation areas, transport malls and vehicle screening areas)
· Funding for adoption of roads, bridges, utilities and other infrastructure.
34. Work is still in progress to arrive at a precise figure for transformation costs which will make the Olympic Park safe, allow access to the public and prepare the site for long term development after the Games. The LDA has estimated that an additional capital of £450 million will be required to complete the transformation of the Park. We are currently working to verify this figure.
Olympic Park Legacy Company Board Members
The following members are non executive Board members:
Ranjit Singh Baxi is one of the UK's most highly regarded Asian business leaders. His own business, J and H Sales based in Redbridge, exports waste paper from Europe, the UK and USA to the Indian sub-continent and the Far East, and has become one of the leading recycling export companies in Europe. Ranjit is also a Divisional President of the Bureau of International Recycling, an international trade federation based in Brussels and a Non- Executive Director of Think London. A Governor of the University of East London, Ranjit is actively involved with the UK Punjabi Community and is the President of the World Punjabi Organisation ( European Division).
Nick Bitel is Chief Executive of the London Marathon and one of the country's leading events experts. A partner in sports law firm Max Bitel Greene LLP, he is a member of the Events for London Steering Group, a member of the London Community Sports Board and former Vice Chairman of Wigan Athletic.
Aman Dalvi has lived in east London all his life. He is Corporate Director, Development and Renewal at the Borough of Tower Hamlets, is a former Chief Executive of Gateway to London, and former Chief Executive of Ujima Housing Association and has extensive experience of housing development and regeneration. He leads on Tower Hamlet's Olympic activities and is a former member of the Board of English Partnerships. He sits on the Board as an individual member and not as a representative of the Borough of Tower Hamlets.
Keith Edelman, is the former Managing Director of Arsenal Holdings and a key player in the Emirates Stadium project. He is currently Chairman of Nirah, and a Non-Executive Director of Beale plc, Arnotts Holdings and Safestore Holdings. He is a former Non-Executive Director of Eurotunnel and formerly Chairman of Glenmorangie.
David Edmonds has had extensive experience within the housing and regeneration sectors and was the senior civil servant in charge of the Government's Inner Cities programme in England. He is a former Chief Executive of the Housing Corporation, Board member of English Partnerships and Chairman of Crisis, the charity for the single homeless. He was also the UK's telecoms Regulator for five years and the Chairman of NHS Direct for four years. He is currently the Chairman of the Legal Services Board, and Chairman of logistics company, Wincanton PLC.
David is a Non- Executive Director of property company Hammerson PLC and a Non-Executive Director of William Hill PLC.
David Gregson is Chairman of Phoenix Equity Partners, one of the leading private equity groups in the UK. He is currently Chairman of Abel & Cole and of Precise Media Group, a Director of Letts Filofax Group, and a trustee of the World Wildlife Fund-UK and of The Climate Group. David was previously Chairman of the Mayor of London's Legacy Board of Advisors.
Robert John is a director of a number of private sector companies which focus on housing and regeneration issues. He has held senior roles at Canary Wharf and has a continuing interest in transport and regeneration. He was appointed Chair of Wales in London in 2006 and is involved in a broad range of activities in Wales. He also advises on property development in Africa and India.
Sir Robert Kerslake is Chief Executive of the Homes and Communities Agency beginning in post as Chief Executive Designate from 31 March 2008. From 1997 to 2008 he was Chief Executive of Sheffield City Council. He was previously with the London Borough of Hounslow initially in the post of Director of Finance and then for seven years as Chief Executive. He has held previous roles with the Greater London Council, handling Transport Finance, and with the Inner London Education Authority, He is a former Non-Executive Board member at the Department for Communities and Local Government.
Philip Lewis is a chartered surveyor and Deputy Chairman of Lambert Smith Hampton, one of the UK's largest property consultants. He is a former Chairman of Sport England, London and past President of the British Council of Shopping Centres. He was previously Chief Executive of Milner Estates plc and Executive Chairman of Safestore plc. He has held Non-Executive roles in a number of companies and is involved in various charitable organisations.
Lord Mawson is one of the UK's leading social entrepreneurs. Over 25 years he has created a family of projects, in particular the renowned Bromley-by-Bow Centre in East London. Today he is leader, motivator and adviser to major projects including St Paul's Way Transformational project in the London Borough of Tower Hamlets and Water City, a visionary plan to revitalise east London.
Elizabeth McMahon is Managing Director of Madison Muir, strategic
Jules Pipe was re-elected as Mayor of Hackney for a second term in May 2006, having become the Borough's first directly elected Mayor in October 2002. Before becoming Mayor, Jules worked as a newspaper journalist, working for, among others, the Sunday Times and Sunday Telegraph, as well as serving as a ward councillor from 1996 to 2002, and Leader of Hackney Borough Council from June 2001 until elected as Mayor in 2002.
Tessa Sanderson is an Olympic Gold Medallist, our ambassador for the London 2012 Games and head of the Newham Sports Academy which was set up to find and train talent for the London 2012 Olympic and Paralympic Games. A former Vice-Chairman of Sport England, she has won Sports Personality of the Year and Athlete of the Year three times and presents sport on various international television channels.
Sir Robin Wales is Mayor of Newham Council. He was a Councillor from 1982 to 1986 and then from 1992, becoming Leader in 1995. In 2002, he became the Borough's first directly elected Mayor and was re-elected in 2006. His major interests are raising employment, increasing affordable housing and regeneration in the Borough. He is local government Board member on the London Organising Committee of the Olympic Games (LOCOG) and is Chair of LOCOG's remuneration committee. He is also Chair of the Five Olympic Host Boroughs and is a member of the Olympic Park Regeneration Steering Group.
In addition to these Non-Executive Directors of the
Company, the Chief Executive, Andrew Altman, and the Company's Director of
Finance and Corporate Services,
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