Decision - i360 - Update report

270.1    The Chair welcomed Mr. Marks and Ms. Harris from the Development Company to the meeting and noted that they would be giving a short presentation on the proposals for the Brighton i-360.

270.2    Following the presentation, the Chair thanked Mr. Marks and Ms. Harris for attending the meeting and stated that he had been a member of the Local Enterprise Partnership Board (LEP), which had discussed the project and concluded it was one of five projects that should be supported with funding.  He believed the proposal outlined in the report to support the project was worthwhile and should be taken forward as the benefits to the city and the regeneration of the area in particular were to be welcomed.

270.3    Councillor Theobald welcomed the report and stated that he supported the project; however he was concerned about the use of council tax payers’ money to enable the loan to the development company and asked for clarification on how this would be secured.

270.4    Councillor Mitchell welcomed the report and the presentation.  She asked for clarification of the expected visitor numbers and what plans were made for future years should those numbers decline and affect the viability of the attraction.

270.5    Councillor J. Kitcat stated that it was not actually council tax payers’ money as the council was taking the loan and subsequently lending the money at a commercial rate to the development company and this was secured by the council having a first charge on the project.  He was confident that officers had looked into the process and were recommending the proposed loan and noted the excellent record that the finance team had in regard to managing the council’s finances.

270.6    The Chair stated that he would be happy to provide further information to Councillor Mitchell on the visitor numbers and financing of the repayments for the loan.  He was encouraged by the support from the LEP and by the support of the Director of Finance and the Head of Strategic Finance and felt that the project should be given the funding to enable it to go ahead.  He also noted that the Head of Strategic Finance had been with the council for twenty-five years and wished to offer the council’s appreciation and thanks for his service.

270.7    RESOLVED:

(1)         That officers be authorised to enter into detailed negotiation with Brighton i360 Ltd regarding loan financing terms under preferred prudential borrowing arrangements;

(2)         That officers be authorised to draw up detailed loan financing and repayment terms under preferred prudential borrowing arrangements as set out in paragraph 3.12 of this report;

(3)         That officers be authorised to enter into detailed negotiations with Brighton i360 Ltd and the C2CLEP on loan financing and repayment;

(4)         That officers be requested to report back to Policy & Resources Committee on 12 July 2012 setting out the outcome of negotiations on both 2.2 and 2.3 above;

(5)         That officers be authorised to complete negotiations with the Brighton i360 Ltd regarding the underwriting of all reasonable expenditure necessary to complete negotiations and agreements required by the council to progress items 2.1 to 2.4 above (noting that Brighton i360 Ltd have accepted the underwriting in principal).