Rebirth for troubled London Dome

The Dome: Three attempts by the British government to sell it have fallen through

LONDON, England -- Britain's troubled Millennium Dome, which has stood empty for almost a year, is to be given a new life as an entertainment complex.

The UK government announced on Tuesday that a consortium had been given the go-ahead to turn the ill-fated structure into a 20,000-seater sports and music venue.

But even the announcement of the rebirth of the Dome at Greenwich, east London, brought controversy.

The UK government announced that Meridian Delta consortium, which includes Lend Lease, Quintain Estates and Anschutz Entertainment Group, would take control of the site on a 999-year lease.

The Dome, built to mark the new millennium, quickly became a much-publicised white elephant, failing to attract anywhere near the expected visitor numbers and swallowing up nearly one billion pounds of public money during its year of operation in 2000.

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Stephen Byers, Secretary of State for Transport, Local Government and the Regions, said English Partnerships -- which handled bids for the Dome -- is expected to sign a legally binding contract with Meridian Delta (MDL) by the end of May next year.

It would get a guaranteed minimum price for the land it is putting into the joint venture, he said.

Over 20 years, the partnership will provide a total investment of four billion pounds ($5.83 billion), at least 5,000 new homes and an estimated 20,000 jobs.

Precise amounts to be received by English Partnerships depend on the small print of the deal. "However, it will amount to several hundred million pounds," Byers said.

"The deal also provides for MDL to take on all the risks associated with operating and maintaining the Dome," he said.

"The public sector's only remaining interest will be to receive a share of profits once they exceed a threshold, still to be determined."

The deal is backed by Philip Anschutz, the billionaire behind the Los Angeles Lakers sports teams.

The dome had been a personal embarrassment for Prime Minister Tony Blair, who strongly endorsed the project that has cost the government more than 10 million pounds this year for its upkeep.

As well as gobbling up large amounts of public money, mainly from the National Lottery, the Dome also seemed to exercise a jinx on many who worked on it.

For sale: A rubber brain. After the Dome's failure its contents were auctioned off

Former Northern Ireland Secretary Peter Mandelson left the government amid questions about donations to fund the upturned saucer in east London.

Chief executive Jennie Page was replaced as visitors failed to show up and successive Chairmen Robert Ayling and David Quarmby also fell by the wayside.

The Government had struggled to find an outright buyer for the Dome and the public-private partnership deal was criticised by other parties.

Liberal Democrats' culture spokesman Nick Harvey said: "What I don't understand is why the government wants to maintain a stake in it through this public-private partnership.

"If the scheme was to prove financially unsuccessful we could have a recourse back to the public purse again."

Shadow Culture Secretary Tim Yeo accused the government of sneaking out the announcement.

He said: "Three bid processes have now fallen through, and it seems almost unbelievable that the government is still yet to secure a buyer for the Dome.

"This matter should have been settled eighteen months ago. However, it is still rumbling on at a cost to the taxpayer of over £20 million since the Dome's closure.

"Sneaking out an announcement on the penultimate day of the parliamentary sitting is like trying to bury a coin in a Christmas pudding."