Land acquisition costs

Meeting: 
Plenary on 2005-12-07
Session date: 
December 7, 2005
Reference: 
2005/0437
Question By: 
Dee Doocey
Organisation: 
Liberal Democrats
Asked Of: 
Manny Lewis, LDA

Question

What is the latest forecast for the cost of land acquisition for the Olympics (including relocation costs)?

Answer

Answer for Land acquisition costs

Answer for Land acquisition costs

Answered By: 
Manny Lewis, LDA

The overall costs for land assembly when they were estimated in 2003 by Insignia Richard Ellis, the surveyors, was for those costs to amount to something like £478 million based on a land take for the Olympic Park estimated at that time of 161 hectares. This is 2003 and that is the basis on which the Board approved a funding plan totalling £478 million for that estimated land take, £250 million for the LDA's contribution to the public-sector funding package and £15 million to underwrite the bid that 2012 put forward, totalling £743 million in summer 2003. Clearly, what has happened since then is that the overall master plan for the Olympic Park has been developed. It has culminated in a significant bid, which was put ' as you know ' to the International Olympic Committee (IOC) in February and it was successful. That bid reflects an increased land take for the Olympic Park, requiring 207 hectares, so that is an increase of about 29% in the scale compared to the summer 2003 comparisons. We have now done, in the LDA, from the assessment of that bid, an overall evaluation of the financial costs for assembling that land, which will be in the region of £1 billion and we are clear that there is a financial strategy, which the Board has approved, which will enable us to keep within that worst-case scenario.