MD3283 Crystal Palace National Sports Centre – Capital Budget Amalgamation

1.1.    Crystal Palace National Sports Centre (CPNSC) was built in 1964 as one of five national sports centres run on behalf of Sport England (and its predecessors). Ownership was transferred from Sport England to the London Development Agency (LDA) in 2006; and then to the GLA (under the Greater London Authority and London Development Agency Transfer Scheme) in 2012. All rights, obligations and liabilities of CPNSC were subsequently transferred from the GLA to GLA Land and Property Limited (a subsidiary company of the GLA) in 2014; and back to the GLA in 2022. The GLA’s ownership rights and liabilities for CPNSC are governed by a 125-year lease from the London Borough of Bromley (LBB), managed by Crystal Palace Park Trust on behalf of LBB.

1.2.    CPNSC has a rich and unique sporting legacy, and remains an important strategic sporting facility for London. It acts as a hub for various sports, sitting at the meeting point of five boroughs and within one of London’s most important parks. The London Plan also designates Crystal Palace as a Strategic Outer London Development Centre for leisure, tourism, arts, culture and sports, with CPNSC supporting activities across some of these categories. The importance of CPNSC has led to its recognition as a GLA ‘core asset’, and a 2024 Mayoral manifesto commitment to complete its renovation. 

1.3.    CPNSC’s legacy also extends to its built heritage, with its buildings either Grade II* statutorily listed or locally listed by LBB. The whole site also falls within a conservation area and a Grade II* listed park. 

1.4.    CPNSC is managed by Greenwich Leisure Limited (GLL), whose most recent contract extension runs up to 31 March 2027, as approved under MD3107. Previous contract extensions were approved under MD2746 and MD2910.

1.5.    CPNSC needs major capital investment. Following a 2020 feasibility study investment was secured in December 2021 via MD2910 – which also made delegations to various authorities, without the need for a further decision form to the Executive Director of Housing and Land. Delegations include:

•    approval to appoint professional consultants, contractors or other service providers, and enter any relevant contracts, pursuant to the refurbishment of CPNSC
•    allocation and direction of all expenditure within the approved budget throughout the lifetime of the CPNSC delivery programme
•    approval of the terms of any planning and other necessary or related agreements required to apply for and implement the planning permission related to CPNSC and to sign such agreements on behalf of the GLA. 

1.6.    Following these approvals, a full review of the scope of the 2020 feasibility study has been undertaken. This includes: the development of a site-wide masterplan; a stadium feasibility study; and detailed design/technical proposals for a first phase of delivery which incorporates the grade II* listed National Sports Centre building. These have sought to rationalise the design and its viability/deliverability; and include significant new interventions, such as an ambitious decarbonised ‘all-electric’ energy strategy for CPNSC to support the work towards for a net zero-carbon GLA estate and net zero-carbon London by 2030. 

1.7.    The revised scheme has been fully costed including accounting for inflationary increases in the construction market since the 2021 approvals. Additional funding for the first phase of the redevelopment has been allocated as outlined in Part 2 of this MD, including through the Green Finance Fund (GFF) and the Mayor’s Budget for 2024-25. 

1.8.    It is recommended that the existing delegations to the Executive Director of Housing and Land, as set by MD2910, be extended to cover this additional allocated funding to ensure that governance and decision-making for the project is aligned. 

1.9.    Any delegated decisions on the use of GFF funding will be cognisant of conditions specified in the funding award letter. This will be monitored by the CPNSC project team, the CPNSC Project Board and the CPNSC Decision Board.
 

2.1.    The primary objective of amalgamating capital funding into the existing CPNSC capital budget, and extending the existing delegations of the Executive Director of Housing and Land to include all allocated funding, is to ensure that governance and decision-making is aligned across the project.

2.2.    It is also noted that the existing delegations of MD2910 to the Executive Director of Housing and Land covering payments to GLL and those of the Executive Director of Resources (now Chief Finance Officer) for land ownership and/or contractual structures relating to CPNSC are not affected by funding decisions and will remain in force.
 

3.1.    Under section 149 of the Equality Act 2010 (the Equality Act), the Mayor and the GLA are subject to the public sector equality duty and must have due regard to the need to:

•    eliminate unlawful discrimination, harassment and victimisation
•    advance equality of opportunity between people who share a relevant protected characteristic and those who do not
•    foster good relations between people who share a relevant protected characteristic and those who do not.

3.2.    The delegation of decisions to the Executive Director for Housing and Land will continue to support decision-making to date that has had due regard to section 149 of the Equality Act. Recent examples of this within the project include enhancement of disability access in detailed design proposals; engagement of women and gender-diverse groups in design workshops; and the engagement of emerging equity designers in design development to enable and facilitate activities that are inclusive and accessible. 
 

Key risks and issues

4.1.    The key risks, and mitigating actions, are detailed in the table below: 

Links to Mayoral strategies and priorities

4.2.    The capital works programme will support the Mayor’s manifesto commitments to redevelop CPNSC and make London the sports capital of the world.

Consultation and impact assessments

4.3.    Engagement and consultation with key stakeholders, centre users and the local community are ongoing, and will continue to form part of the delivery of the capital works programme. This will not be affected by the extension of existing delegations. 

Conflicts of interest

4.4.    There are no conflicts of interest to note for any of those involved in the drafting and clearance of the decision. 
 

5.1.    Following the review of Crystal Palace National Sports Centre (CPNSC) feasibility study, detailed technical design and development of a site-wide masterplan, the budget required to complete phase one of the scheme has increased. The decision is seeking approval to extend the current delegations of the Executive Director of Housing and Land following the increase in the budget. The revised budget will contribute to funding phase one of the project, including the Energy Strategy to decarbonise the sports centre. The project risks are outlined in section four.

Amalgamation of budgets

6.1.    The foregoing sections of this report indicate that the decision requested of the Mayor – to amalgamate the newly allocated capital funding into the existing CPNSC capital budget – concerns the exercise of the GLA’s general powers, and fall within the GLA’s statutory power to do such things considered to further or which are facilitative of, conducive or incidental to, the promotion of social development within Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:

•    pay due regard to the principle that there should be equality of opportunity for all people
•    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
•    consult with appropriate bodies.

6.2.    In taking the decisions requested, the Mayor must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

Delegation

6.3.    Any function exercisable by the Mayor on behalf of the GLA may also be exercised by a member of the GLA’s staff, albeit subject to any conditions, which the Mayor sees fit to impose. To this end, the Mayor may confirm that the delegations, which were made by MD2910, apply to the amalgamated budget, if he so chooses.