Issue - items at meetings - i360 Loan Agreement

Joint report of the Strategic Director; Place and the Director of Finance (copy attached).

(1)               That the structure and terms of the loan that have been agreed to date as set out in paragraphs: 4.2, 4.3, 4.7 and 4.8 of the report be noted;

(2)               That the Director of Finance and Strategic Director; Place, after consultation with the Chair of Policy & Resources Committee be authorised to finalise terms and enter into the proposed loan agreement with Brighton i360 Ltd with a target of financial close by mid September 2012 and to take all steps necessary or incidental to the completion and implementation of the agreement;

(3)               That the Head of Legal and Democratic Services be authorised to complete all necessary documentation and take all necessary action to effect completion of the proposed loan; and

(4)               That the inclusion of the commercial loan to Brighton i360 Ltd in the Capital Resources and Capital Investment Programme 2012/13 (and the following two years’ capital programmes) to be funded through unsupported borrowing be approved.

27.1         The Strategic Director; Place introduced the report which followed on from a previous report to the Cabinet in May and following a due diligence process, proposed that a loan be made to the Development Company to help fund the cost of the i-360.  He noted that further financial and commercial details were contained in the part two report, Item No.41 and recommended that proposed loan be approved.

27.2         The Chair welcomed the report and stated that he believed it was a very good project and one that would bring benefits and help to regenerate the area.  He was aware that local traders and businesses were supportive and felt that it would be a unique focal point for the city.

27.3         Councillor G. Theobald stated that the Conservative Group fully supported the project and hoped that it would lead to extra employment and the regeneration of the seafront.

27.4         Councillor Mitchell stated that the Labour & Co-operative Group also supported the scheme and believed it would be the catalyst for the regeneration of the area and would encourage more visitors to the city.  Her only concern that remained was in regard to transport links and how additional traffic would be accommodated.

27.5         Councillor West stated that he wished to thank the officers involved in project and also to point out the role that the previous Leader of the Council and current Leader had had in bringing the development forward.  The potential benefits to the city were enormous and it would see the creation of a world-class icon that would put the city on the map.  He acknowledged there was a need to look at the transport issue and hoped that it might lead to the development of a rapid transport system for the city.

27.6         Councillor Hamilton welcomed the report and stated that he felt it was important to noted that the loan from the council was not council tax payers’ money, but a means whereby the council could loan funds to the developer and secure the project.

27.7         The Chair noted the comments and also welcomed the lead partners from Marks Barfield to the meeting.  He also drew the committee’s attention to appendices 5 and 6 to the report, which provided a lot of detail about how and why the project should be supported.  He also noted that it was supported by the Local Enterprise Partnership which had also agreed to provide a loan of £3m to the Developer.  He then put the recommendations to the vote.

27.8         RESOLVED:

(1)         That the structure and terms of the loan that have been agreed to date as set out in paragraphs: 4.2, 4.3, 4.7 and 4.8 of the report be noted;

(2)         That the Director of Finance and Strategic Director; Place, after consultation with the Chair of Policy & Resources Committee be authorised to finalise terms and enter into the proposed loan agreement with Brighton i360 Ltd with a target of financial close by mid September 2012 and to take all steps necessary or incidental to the completion and implementation of the agreement;

(3)         That the Head of Legal and Democratic Services be authorised to complete all necessary documentation and take all necessary action to effect completion of the proposed loan; and

(4)         That the inclusion of the commercial loan to Brighton i360 Ltd in the Capital Resources and Capital Investment Programme 2012/13 (and the following two years’ capital programmes) to be funded through unsupported borrowing be approved.