2.5 Most respondents to the market testing focused on the land available around the Dome rather than the Dome itself. Of the 16 property companies specifically targeted, only those who later formed the winning Consortium10 put forward a specific proposal for using the Dome, while three expressed an interest in the land alone. Some companies suggested they might link with possible Dome operators if given enough land for the scheme to look viable. But most of the companies contacted were either not interested in pursuing the opportunity or did not put forward any specific, credible ideas.
2.6 To stimulate interest in the Dome and reduce costs to bidders making proposals, English Partnerships commissioned a report from Economic Research Associates, which suggested that the Dome could support a theme park or an urban entertainment centre. However the authors thought such proposals would require a capital injection of £100 million to ensure success, adding that a sports or events arena was unlikely to be viable. The Wellcome Trust, one of the three bidders that emerged from the market testing process, told us that they regarded cross-subsidy from the land development to the Dome's capital costs as inevitable; they did not see a way of making a commercial return on the Dome in isolation. Another of the last three bidders, Tops Estates, considered that a mix of leisure facilities and specialist retail within the Dome could be viable.11
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10 Meridian Delta Limited is a joint venture company between Lend Lease, an Australian listed real estate company, and Quintain Estates and Development plc. Lend Lease holds a 51 per cent stake in Meridian Delta with Quintain the remaining 49 per cent (See Figure 11).
11 In the eventual deal, Meridian Delta has budgeted to make a number of payments to Anschutz out of their return from the rest of the scheme, as a contribution to the development and maintenance of the Dome. These are estimated at £34 million at present values, less any share of profits from the Dome. The Department regards this not as a cross-subsidy, but as recognition of the benefits to the development of the Peninsula of retaining an iconic facility to help attract tenants and homebuyers.