On track for the Olympics

01-May-2006  |  Planning & Environment, Real Estate

In July 2005, the IOC made the momentous announcement in Singapore that London had won the contested bid to hold the 2012 Olympic and Paralympic Games, beating Paris, which many had assumed to be the favourite.

 

In July 2005, the IOC made the momentous announcement in Singapore that London had won the contested bid to hold the 2012 Olympic and Paralympic Games, beating Paris, which many had assumed to be the favourite.

The Government moved quickly after the IOC announcement and the London Olympic Games and Paralympic Games Act was fast – tracked through Parliament, receiving Royal Assent on 30 March 2006.

The main measures of the Act provide for:  

  • the establishment of the Olympic Delivery Authority (ODA) responsible for creating the permanent infrastructure for the Games, with wide-ranging powers extending across the country and with ultimate responsibility for delivering the Games on schedule and on budget;
  • the delivery of transport needs for the Games;
  • controls on marketing in connection with the Games;
  • the Mayor of London's power to prepare for and stage the Games; and
  • extension of the purposes of regional development agencies to include the purpose of preparing for the Games. 

The Act enables the ODA to take planning powers by way of an Olympic Planning Order and on 15 February 2006, the Office of the Deputy Prime Minister issued a consultation paper entitled "Olympic Delivery Authority (Planning Functions) Order 2006" which seeks views on whether and what planning powers should be granted to the ODA. The consultation ends on 12 April 2006.

   

An initial priority is land assembly for the Olympic Park site in Stratford. Pending establishment of the ODA, the LDA has been negotiating with those that will need to be relocated to allow the construction work to begin. Although negotiations are ongoing, if unsuccessful the ODA will need to fall back on compulsory purchase orders. On 17 November 2005, a compulsory purchase order was issued by the LDA for the acquisition of all the necessary land interests on the 838-acre site that will compel more than 2,000 landowners, 400 residents and 280 businesses to transfer their respective interests to the State. 

It is usual for negotiations to go on for some time before compulsory purchase powers are used. In the case of the Olympics the acquiring authority clearly felt that in order to meet construction deadlines it had limited time and needed to issue the compulsory purchase order more quickly than is usual. This has led to significant local resentment.

Displaced occupiers have lodged complaints to the International Olympic Committee. Compensation packages are yet to be announced, but the Secretary of State for Culture Media and Sport has stated that the displaced occupier will receive "a fair and appropriate compensation".

Some relocation deals have already been agreed, but there is still a long way to go if the ODA is to achieve vacant possession of the whole of the 838-acre site by the target date of July 2007. What is certain is that all parties involved will face heavy criticism if the development of the Olympic site is delayed by arguments over the initial land assembly process.