London Mayor throws housing spanner in Legacy Dome plans

Treasury Holdings' plans for a multimillion pound commercial development on land surrounding the Millennium Dome site in London may be blocked by Ken Livingstone, the city's Mayor. Mr Livingstone has threatened to use his legal powers to prevent Legacy - a vehicle backed by Treasury - building on the site unless the project includes a significant amount of low-cost housing.

Legacy, which was set up by the politically connected British developer, Mr Robert Bourne, to redevelop the Dome will be 80 per cent owned by Treasury, its financial backer, when the deal is completed. A spokesman for Treasury - which is owned by developers Mr John Ronan and Mr Richard Barrett - declined to comment on Mr Livingstone's remarks, saying the matter was being handled by Legacy in London.

A spokesman for the British consortium said the issue had arisen because of false reports that they planned to build luxury accommodation on the site. He said this was untrue and any further development would be in keeping with the "knowledge city" vision put forward by Legacy for the Dome. He did not rule out large scale office development.

The spokesman said if any housing was subsequently developed the consortium would comply with any legal requirement for an element of social housing. He also dismissed suggestions that negotiations with the British government - which awarded Legacy exclusive preferred bidder status in respect of the Dome and surrounding land on November 20th last - have run into problems.

"Contrary to media speculation, this status has not changed and final negotiations and discussions are advancing as per the timetable laid out in November."

He said he expected contracts to be signed some time next month.

"No further bids for the purchase of the Millennium Dome will be considered while Legacy holds the preferred bidder status," he said.

It is understood Treasury will not take up its stake in Legacy until the £125 million sterling (€197 million) deal is completed and Mr Barrett will then join the board. Mr Livingstone said yesterday that he would use his legal power to halt the redevelopment of land next to the Dome if it did not include the minimum 25 per cent of affordable housing.

However, the mayor said low-cost homes should make up around half of the new housing.

"I would want to see a figure much closer to 50 per cent so we don't just have luxury homes with wonderful riverside views; we must also have housing there for nurses and teachers and police officers," Mr Livingstone told BBC Radio 4's World at One.

Mr Michael Heseltine, the former conservative deputy prime minister, and the Liberal Democrats have called for the sale of the Dome's contents to be delayed until the Legacy deal is completed. Opposition politicians also demanded a re-opening of bidding for the Millennium Dome site, accusing the Government of failing to maximise potential revenue and being "desperate" to offload the attraction before a general election.