Issue - items at meetings - i360: Covid-19 Support

Report of the Executive Director for Economy, Environment & Culture.

RESOLVED:

(1)             That it be agreed to defer £150,000 from the December 2019 payment in addition to the £880,304.25 which the Policy & Resources Committee agreed to defer on 5^thDecember 2019, on the same terms;

(2)             That it be agreed to defer the loan payments due in June and December 2020, but request that any funds over and above the cashflow necessary to keep the attraction operational are paid to the Council in part payment of the sums owed;

(3)             That the establishment of a pattern of regular meetings and information provision between the i360 management and board and the i360 Member Working Group, as set out at section 3.14 of the report be agreed; and

(4)             That it be noted that officers have not progressed the loan restructure or completed the novation of the Coast to Capital Local Enterprise Partnership (LEP) loan agreed at Policy & Resources Committee in December 2019 due to the impact of the Covid-19 pandemic on the i360 and that they will progress these once the attraction is able to reopen.

15.1         The Assistant Director City Development & Regeneration introduced the report which set out measures necessary to support the continued working cashflow of the i360 during the Covid-19 pandemic. He noted that overall the visitor economy was suffering and that the proposed measures were being made to ensure that the council did not face additional costs associated with the running of the i360.

15.2         The Chair noted that there was a Green amendment and invited Councillor Mac Cafferty to move the amendment.

15.3         Councillor Mac Cafferty formally moved the amendment and stated that it was intended to draw down on the work and discussions of the i360 Working Group and hoped it would be seen as helpful.

15.4         Councillor Gibson formally seconded the amendment and reserved his right to speak.

15.5         The Executive Director for Economy, Environment & Culture noted that should the amendment be carried it would remove the December deferral and set monthly meetings. He suggested that it would be appropriate for the Working Group to set a work programme and that officers could undertake the actions and report to the Working Group as they had previously in 2019.

15.6         Councillor Appich stated that the Working Group had met in early June and accepted that when the Council had approved the loan the underlying figures for what is a weather dependent attraction had been overstated. It had been closed since March due to the pandemic and had suffered a significant loss of income and negative cashflows. However, the latest projections, assuming a reopening with safe distancing and the potential of more people taking a staycation were positive. It was therefore hoped that further support could be given, and the Working Group had agreed to recommend the deferral of remainder of last year’s loan payment and the payments due at the end of June and December to give the i360 breathing space. She also noted that the Working Group were hoping to get more involved with the management team and work with them in developing an action plan for the attraction’s recovery.

15.7         Councillor Bell stated that he felt it was important to give the attraction time to address the situation although he did feel it was more likely that the council would have to act. He also suggested that consideration be given to asking whether the owners would consider agreeing to Directors’ guaranteed being put in place.

15.8         Councillor Yates stated that he did not feel the amendment was helpful and could not support it. He suggested that it would be better for the Working Group to take matters forward and work with the management team for the i360 and then report back to the committee.

15.9         Councillor Gibson referred to the amendment and stated that it would be helpful to see the cash-flow information and that Councillor Druitt as the Green Group’s representative on the Working Group had not felt it was appropriate to waive the December payment. He hoped that the Working Group would receive the information and be in a position to make recommendations to the committee.

15.10      The Assistant Director Development & Regeneration noted that the management team hoped for a stronger summer and were yet to complete their long-term restructure and that the information would come to the Working Group. He also noted that he and finance officers attended the Working Group and it was hoped that a closer working relationship with the management team would be forthcoming.

15.11      The Chair noted the comments and put the amendment to the vote which was lost by 3 votes to 2. She then put the recommendations as listed in the report to the vote which were carried.

15.12      RESOLVED:

(1)      That it be agreed to defer £150,000 from the December 2019 payment in addition to the £880,304.25 which the Policy & Resources Committee agreed to defer on 5^thDecember 2019, on the same terms;

(2)      That it be agreed to defer the loan payments due in June and December 2020, but request that any funds over and above the cashflow necessary to keep the attraction operational are paid to the Council in part payment of the sums owed;

(3)      That the establishment of a pattern of regular meetings and information provision between the i360 management and board and the i360 Member Working Group, as set out at section 3.14 of the report be agreed; and

(4)      That it be noted that officers have not progressed the loan restructure or completed the novation of the Coast to Capital Local Enterprise Partnership (LEP) loan agreed at Policy & Resources Committee in December 2019 due to the impact of the Covid-19 pandemic on the i360 and that they will progress these once the attraction is able to reopen.

Note:     The Chair took the item ahead of Item 10 because of the difficulties experienced by Mr. Kapp in joining the meeting.