Do I look good naked?
August 15th, 2008
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August 15th, 2008
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October 7th, 2007
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July 2nd, 2007
The Government and Mayor of London, Ken Livingston has outlined how the National Lottery and London will benefit from the sale of the Olympic Park land after the Games.
A new Memorandum of Understanding between Tessa Jowell and Mr Livingstone, deposited in the House of Commons library, sets out how the Lottery and the London Development Agency will be paid back using proceeds from the land sale.
The agreement is the formalisation of the commitment made by Tessa Jowell in March that the National Lottery would be repaid from the financial benefits of increased land values in the Lower Lea Valley after 2012 as well as reimbursing the LDA for the purchase of the land and relocation of businesses to create the Olympic Park.
The potential proceeds from the sales are to be shared to allow both the Lottery and LDA to recover all of their investment. In order to allow continuing spend on regeneration and to repay the Lottery good causes, the proceeds will be shared on a staged basis.
After LDA has recovered the initial cost of buying the land, the Lottery will recover 75% of its additional funding (£506m), while the LDA recovers 25% of its outstanding costs (£125m), on a pro rata basis. Then each will recover their remaining costs from subsequent sales, with £169m going to the National Lottery and £375m going to the LDA. This will cover the LDA costs in remediating and clearing the Olympic Park land.
Ms Jowell said: It should give lottery distributors real confidence that the additional funding necessary for a successful Olympic and Paralympic Games will be re-paid - providing them and the whole country with a further 2012 dividend.
Mr Livingstone, said:The new memorandum makes it crystal clear once and for all that the further funding of the 2012 Games agreed between myself and the Secretary of State means Londoners will not have to pay a penny more towards funding the Olympics.
