The problems associated with developing the 39 acre Battersea power station site to provide a new stadium for Chelsea are formidable. The 1930s brick building was decommissioned in 1983, but plans to turn it into a theme park, concert venue and offices have all failed.
The problems associated with developing the 39 acre Battersea power station site to provide a new stadium for Chelsea are formidable. The 1930s brick building was decommissioned in 1983, but plans to turn it into a theme park, concert venue and offices have all failed.
The recession only made things worse. Treasury Holdings, the Irish property developer and Battersea’s previous owner, was forced to hand the site over to Ireland’s National Asset Management Agency (Nama) and Lloyds Bank after the two enforced a loan in December that the company had. The lenders had lost faith in Treasury’s ability to find a buyer. Treasury has now started a legal action in Dublin against Nama seeking damages.
The biggest obstacle is the proposed extension of the Northern Line from Kennington to Battersea which is estimated to cost £750m, although it is the sort of infrastructure project that would offer a response to calls for a growth agenda. The Chancellor, George Osborne, has said that he would prepared to consider allowing the Mayor of London’s office to borrow against the Community Infrastructure Levy to help finance it.
Given that Boris Johnson is in a strong political position following his re-election, it is the sort of project that he could advance and which Dave Cameron would find it difficult to oppose. Even so, Chelsea and its development partner would have to make a substantial contribution towards the cost.
It is thought that it would cost at least £60m to restore the four chimneys of the power station and Chelsea would also have to provide affordable housing. Construction of the stadium would take three to four years.
However, expressing a firm interest in Battersea could put pressure on Hammersmith and Fulham Council which wants to keep the club in the borough rather than see it move to Wandsworth. The Earl’s Court exhibition centre site is still in the frame.