An agreement setting out how the costs of the London Olympics will be paid back has been published.
The new 'memorandum of understanding' between Culture secretary Tessa Jowell and London Mayor Ken Livingstone sets out how the financial benefits of increased land values in the Lower Lea Valley will be used to pay back National Lottery funding as well as investment from the London Development Agency (LDA) for the purchase of the land and costs of relocating businesses away from the Olympic Park.As the land is sold off after the Olympics, repayments will be made in stages. Under stage one, the LDA will recover the initial cost of repaying the land and then the Lottery will be paid back 75% of its additional £506M funding. The LDA will then recover 25% of its outstanding costs (£125M). Finally, each will recover remaining costs from subsequent sales with £169M going to the National Lottery and £375M to the LDA.'This is a good deal for the National Lottery, for those who benefit from its projects, and for London,' said Jowell.