Key information
Decision type: Director
Reference code: DD2260
Date signed:
Decision by: Martin Clarke, Executive Director of Resources
Executive summary
Decision
LLDC entering into an agreement granting an option to the current long leaseholder, which would commit LLDC to extend the term of the current lease from 200 years to 999 years (and therefore effectively dispose of its economic interest), in Here East at Queen Elizabeth Olympic Park at a future point in time for a capital sum. LLDC would only be obliged to dispose of its interest if the option is exercised and certain conditions are satisfied.
This transaction supports the V&A’s relocation of its Blythe House reserve collection to Here East as part of the overall East Bank project.
Part 1: Non-confidential facts and advice
In May 2014, the Mayor approved (under DD1198) the LLDC’s granting of a lease to iCity for the former Press and Broadcast Centres on Queen Elizabeth Olympic Park, of which LLDC is the freehold owner. This consent was required under 4.5 of the LLDC governance direction 2013 (MD1227) as it was a land transaction under National Lottery Agreement.
In February 2018, the Mayor approved (under MD2234) the LLDC’s entry into an Agreement for Lease (AfL) with the V&A for premises at Stratford Waterfront as part of East Bank within Queen Elizabeth Olympic Park. There were several conditions that needed to be satisfied before the AfL could be signed, including the finalisation of the terms for the V&A’s relocation of its Blythe House reserve collection to Here East. This relocation was conditional on LLDC agreeing to commit to, in effect, to disposing of its remaining economic interests in Here East at a future point in time, subject to the satisfaction of certain conditions. The terms have now been agreed.
East Bank at Queen Elizabeth Olympic Park is a new centre of culture, education, innovation and growth. East Bank will be spread across three sites – UCL East, Stratford Waterfront (BBC, the V&A including a partnership with the Smithsonian Institution, Sadler’s Wells and UAL’s London College of Fashion) and Here East (the V&A's new Collection and Research Centre, and an existing space for UCL).
East Bank will support LLDC's ability to deliver a meaningful and sustainable legacy from the London 2012 Olympic and Paralympic Games by creating an exciting new district of London, providing a unique offer to residents and visitors. East Bank will support wider economic growth, greater access to education provision, as well as new skills and employment opportunities, generated by a strong visitor economy and an innovative learning and research location for inward investors. It supports a range of priorities including:
• economic growth
• enhanced education and skills levels
• sustainable local jobs
• raising local aspirations
• supporting the delivery of a successful and accessible Park
• helping to redefine Stratford's place in London's economy, as a new heart for east London
The V&A is the world’s leading museum of art and design with collections unrivalled in their scope and diversity. V&A East will offer a new model for exploring its world-renowned collection of art, design and performance at the heart of east London. A dynamic new museum, it will inspire and empower the next generation of artists, designers and innovators; support and promote the creative industries; and enable audiences to discover the value of creativity and design. The provision of funding, if required, would contribute to the successful operation of V&A East. The scheme includes:
• a new museum where visitors can explore the V&A’s collections, meet, socialise, and take part in events
• pioneering exhibitions, gallery displays, and community activities
• spaces for community-led projects, residencies, installations, and emerging design talent
• a co-curated programme with the Smithsonian Institution.
LLDC’s priority theme of championing equalities and inclusion was taken into account in the development of the proposition for East Bank, in consultation with all the project partners. LLDC will ensure that equalities, access and sustainability considerations are applied to procurement, employment, participation and inclusive design as required throughout the project.
The GLA and LLDC are public body with a statutory duty to promote equality, tackle discrimination and promote good relations between different groups of people with protected characteristics. LLDC undertook a strategic equality impact assessment on its renewed priorities, including its emerging five-year organisational strategy and the East Bank plans. As part of this process, LLDC consulted with equality groups and tested whether its approach is helping to promote its equality priorities. The outcomes of the strategic equality impact assessment in relation to the East Bank have been used to inform the planning process and public consultations. The Mayor is under the same duty. It is anticipated that there will be no adverse impact on equalities issues and any protected characteristic groups.
a) Key risks and issues
There are a number of risks that have been identified that are typical of a project of this scale and complexity. These are covered in the part 2 element of this form.
b) Links to Mayoral strategies and priorities
This proposal will support the Mayor’s priorities:
• a cleaner, greener London
• making the most of arts, culture and creativity
• a fairer and more equal city
• business, prosperity and opportunity
c) Impact assessment and consultations
An economic impact assessment was undertaken as part of the East Bank Outline Business Case submitted to Government. It showed that the project will generate 1,500 direct jobs (plus indirect jobs and an estimated 15,000 job years during construction), 1.5 million additional visitors and £1.1 billion of economic net present value to Stratford and the surrounding area (based on a new method of valuation from the Government).
LLDC’s Board and Investment Committee, TfL Legal and external legal advisors were consulted during the development of the AfLs.
These are set out in part 2 of this decision.
The relevant legal considerations are incorporated elsewhere in this form.
Signed decision document
DD2260 Here East - SIGNED