The Marshgate Lane Business Group (MLBG), which represents 173 businesses in East London, has reported to the IOC that they have been “forced to withdraw support” due to the failure of the London Development Agency (LDA) to address fairly their relocation.
When representatives from the IOC met with the steering committee of the MLBG during their evaluation visit to London in February, they asked them to report on the status of their discussions with the LDA.
The MLBG has now written to the IOC claiming the LDA has failed to address the “affordability gap” between the market price of the business properties and the cost of relocation.
The businesses claim the direct result of London winning the Games would mean them losing their livelihoods and businesses that employ more than 5,000 local people.
The letter to the IOC states: “We write with a heavy heart, because since the bid was announced we have supported the principle of London winning but only on the basis that the business relocations were dealt with fairly. They have not been.”
The Times newspaper has reported that an LDA spokesman said only 5,000 workers would be potentially affected by the redevelopment of the site and the Olympic Park alone would generate more than 11,000 jobs.
The LDA had also said it was “confident” that its offers to businesses represented the market value of their properties and it had gone beyond its legal obligations to assist businesses by, for example, funding their legal and surveyors’ costs.
The MLBG said the LDA had allocated £450million to relocate all the businesses, but that professional advisers for the businesses have estimated the cost to be more than £1.5billion.
