London Mayor Boris Johnson has announced that a deal has been agreed to finally clear up the issue of the Olympic Park ownership.
The deal will see the Olympic Park Legacy Company (OPLC) take control of the land owned by the London Development Agency (LDA).
Mr Johnson said “long and complex” negotiations had taken place between the LDA and the OPLC.
The OPLC is in charge of ensuring a lasting legacy is left at the site in Stratford, east London, after the 2012 Games are over. A number of investors and property executives had previously said one organisation should be made responsible for the future of the park.
Johnson, speaking at an international property conference in Cannes, said: “The next step will be to carry through the land transfer to the legacy company. This is a good deal for London and for legacy.”
The aim is for a new city district to be created once the Olympic Park land and Three Mills site has been transferred. It is to provide 10,000 homes and 10,000 jobs, three new primary schools and a secondary school, health facilities, a state of the art commercial sector and waterside park to regenerate the region.
Under the deal, the Government will fund the OPLC with £138M so they can buy the LDA’s land holdings in the Olympic Park and at Three Mills.
To reflect the level of debt taken out by the LDA in acquiring the site, the agency will be relieved of its commitment to pay £300M to the Olympic Delivery Authority (ODA), which is in charge of the Olympic build.
The LDA will repay £369M of debt between 2011 and 2014 without the need to take out any further loans over the same period.