10 January 2012
The Olympic Park Legacy Company (OPLC) has appointed Balfour Beatty WorkPlace to run the ArcelorMittal Orbit attraction and Greenwich Leisure to operate the Aquatics Centre and Multi-Use Arena.
The appointments mean that six out of eight permanent Olympic venues have had their future secured after the games end this summer, according to the OPLC.
Balfour Beatty WorkPlace will maintenance the ArcelorMittal Orbit for 10 years from 2013 and also Queen Elizabeth Olympic Park in which the main venues are located.
The OPLC said that “where necessary, Balfour Beatty WorkPlace will hire in the necessary expertise to ensure that the ArcelorMittal Orbit becomes one of London’s foremost visitor attractions and that revenues are maximised”.
Balfour said the deal is worth £50 million over the 10 years but there could be further discussion with the OPLC to extend the scope of the contract.
By combining in one contract legacy use of the Aquatics Centre and the Multi-Use Arena – the handball venue during the Games - the Aquatics Centre will not require any additional public subsidy “as the Arena will cross subsidise it”. Further revenue will be generated from naming rights for both venues, which will be on offer at a later date, the OPLC said.
Greenwich Leisure will also operate its venues years for ten years. It already manages more than 100 public leisure centres in the south of England and in York, employing around 5,000 people, all locally recruited.
Together, the contracts will ensure 254 full-time jobs as well as 86 apprenticeship places every year, according to the OPLC.
Around three-quarters of jobs for the two contracts “will go to local people in the host boroughs” with a “strong focus on small- and medium-sized enterprises benefitting from supply chain opportunities.”
The price of swimming at the Aquatics Centre or hiring a court at the Arena will be the same as the average local pool or sports centre.
“With the appointments of anchor tenants and events for the (Olympic) Stadium and the Press Centre and Broadcast Centre this summer, London is on course to secure the future use of every permanent venue before the Games have even started – a first for any Olympic City.”
Baroness Margaret Ford, chair of the OPLC, said Greenwich Leisure and Balfour Beatty Workplace will play a key part in making Queen Elizabeth Olympic Park a “thriving visitor destination” but also affordable and accessible to the public.
“The combination of Balfour Beatty WorkPlace’s commitment to jobs and apprenticeships, and GLL’s innovative proposals for sports programming will create a host of economic and sporting opportunities,” she said.
The other three venues that have had their futures secured are the Athletes Village, the Velodrome and Eton Manor – to be known as the Lee Valley Hockey and Tennis Centres).
Lee Valley Regional Park Authority will own and operate the VeloPark and the Lee Valley Hockey and Tennis Centres after the Games.
The Athletes Village has been sold by the Olympic Delivery Authority. Ownership is now 50 per cent by Qatari Diar and Delancey for private housing and 50 per cent by Triatholon Homes for affordable housing.
Other news for Tuesday, 10 January 2012
Balfour, Greenwich Leisure win legacy deals
MoD mulls more estate outsourcing
Interserve: good support services growth
FMs nearing $100,000 average salary
FM World launches readership survey
Contracts round-up
FM World Blog: Use rule of thumb to get results
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