Londons Olympic Bet on Urban Revival R i l Economic News Coverage based on Wall Street Journal July 21‐22 Journal July 21 22 by Nag Sayala July 2012 J l 2012
A long dreamLondon bids 7 years agoEmerged challenges that werent foreseen • The global financial crisis g• A double‐dip recession • And the prolonged euro crisis And the prolonged euro crisisUrban revival to play out over two decades
East London• East London districts around the Olympic Park, has significantly higher unemployment than in London overall. significantly higher unemployment than in London overall• For generations, it has been an entry point for immigrants. g y, g• During the 19th century, its docks handled goods from across the British Empire. Then manufacturing took hold.
London spends on..$14.5B 75% to regenerate East London ‐ one of d f the citys poorest parts. New 11K homes 2K temp 8K permanent jobs New Olympic stadium in 250 acres New rail line that will eventually link East New rail line that will eventually link East London with the citys more affluent center and west.
Lessons from the past• 2000 Sydneys Olympic Park considered an 2000 Sydney s Olympic Park considered an white elephant• 2004 Athens Games and 2008 Beijing Games 2004 Athens Games and 2008 Beijing Games facilities sit unused• F From 1992 Olympics, Barcelona, did manage 1992 Ol i B l did to breathe new life into a rundown neighborhood, but it took some 20 years i hb h d b i k 20
StrategyRe‐use infrastructure Job creation Affordable housing• Sets up committee to focus on "legacy" three years ago ‐ no other host city had done.• Designed venues that can be adapted for smaller numbers.• Athletes Village transforms into 2,800 apartments. Athletes Village transforms into 2,800 apartments.• Use temporary infrastructures; dismantle afterwards• 2K temporary and 8K permanent Jobs• 35% of 11,000k housing units are affordable. • 91K sq. ft. press center to office buildings• Improved public infrastructure to attract new buyers Improved public infrastructure to attract new buyers
Fish Island – micro level bet• £500,000 for restaurant; £1 million to convert canal‐front wasteland into corporate lf t t l di t t entertainment space• Successful in securing site 100 meters close"There is this view that the Olympics will arrive in the U.K. and shower everyone with gold..It just doesn t work like that..It just doesnt work like that ”Lance Foreman, owner of H. Foreman & Son
Lets see..It’s too early to measure the success. Some setbacks: b k •Unemployment went up from 5.8% to 6.5% and •“No discernible effect” ‐Citigroup Inc. ‐Citigroup Inc •Some local people are upset with relocation. ih l iYet to see if the East London and banks of Thames River witness the anticipated growth. It’s a million dollar question.
Questions?• Contact @ NagSayala@yahoo com Contact @ NagSayala@yahoo.com