Government finally agree to £438m Olympic land deal

By James Toney, Sportsbeat

LONDON 2012's legacy commitments have been given a major boost after Chancellor George Osborne finally agreed to honour a £438 land deal.

RESOLUTION: The future of the Olympic Park seems more assured after a £438 land deal was agreed today (Getty Images)

The Olympic Park Legacy Company - the organisation responsible for managing the Olympic Park at the conclusion the Games - had expressed their irritation with the new coalition's insistence on reviewing the previous government's pledge to take on the debt accumulated by the London Development Agency, the organisation responsible for the original land purchase.

The delay looked like having the potential to cause a major row between the Mayor's office and Downing Street, with Boris Johnson accusing the Government of jeopardising the project by their dithering.

However, under plans agreed today the Government will pay £138million for the current value of the Stratford land while also relieving City Hall of their £300million liabilities.

The OPLC will now be able to resume talks with potential investors  - such as organisations interested in taking over the running of the 80,000 seater Olympic Stadium - which had been stalled by the increasing uncertainty.

"The Board of the Olympic Park Legacy Company is delighted with the announcement by the Government regarding the resolution of the land and debt issue." Olympic Park Legacy Company's Margaret Ford

"The Board of the Olympic Park Legacy Company is delighted with the announcement by the Government regarding the resolution of the land and debt issue," said Baroness Ford, the chairman of the OPLC. 

"This affirms their strong commitment to legacy and allows us to carry on building the momentum we have been driving over the past year."

The matter was raised during the IOC's sixth inspection visit, with Denis Oswald, the head of the co-ordination commission, forced to defend London 2012's legacy plans.

"The legacy aspect is one of the reasons London was chosen to host the Games, as IOC members were convinced their plans were better than any other candidates," he said.

"Most of the time, organising committees look at legacy when the Games are over but London is already working on legacy and that should be praised.

"Thank you for your letter regarding the re-approval of the previous administration's Olympic land related agreement. I share your concern that we need show the world that we can achieve a lasting Olympic and Paralympics legacy for the country and for local communities, and that this is affordable and offers good value for money for taxpayers." George Osborne letter to Mayor of London Boris Johnson

"There are some elements to clarify but there are still two years to go."

One major unresolved legacy issue is the future of an athletics track at the Olympic Stadium - a key pledge made by London 2012 organisers to the IOC before they were awarded the Games.

Oswald distanced himself from the decision but Locog chairman Seb Coe insisted athletics will play a part in the stadium, with the OPLC due to announce their future partner next March, following a lengthy consultation process.

"The future use of the Olympic Stadium will be based on the commitments we made in Singapore about a long-term legacy for athletics," insisted Coe.