Agenda item - Brighton i360 - Decision on Future

1)           Cabinet agrees to release the security on its £51m loan debt and rolled-up interest to the Buyer. In return, the city council will receive a future share of revenue, as set out in the Part 2 report.

2)           Cabinet delegates authority to the Corporate Director for Operations, following consultation with the Cabinet Member for Finance and City Regeneration, to complete negotiations and any legal documentation required to give effect to recommendation 2.1 above.

3)           Cabinet agrees to commission an external independent investigation to understand the circumstances of and lessons from the council’s original decision to loan public money to deliver the Brighton i360.

142.1   Cabinet considered a report that provided an update on the decision of the board of Brighton i360 Limited (“Brighton i360”) to file for administration and the work done by the administrators, following their appointment, to seek a sale of Brighton i360’s business and assets to new owners. The report recommended the council agree to the release of its security on the debt owed to the council by Brighton i360.

142.2   Councillors Robins, Miller, Muten, Rowkins and Sankey contributed to the debate of the report.

142.3   Cabinet agreed to move to confidential session at 7.45pm.

142.4   Cabinet resumed public session at 8.15pm.

142.5   Councillor Taylor moved a motion to amend recommendation 2.2 as shown in bold italics below:

2.2    Cabinet delegates authority to the Corporate Director for Operations, following consultation with the Cabinet Member for Finance and City Regeneration, to complete negotiations and any legal documentation required to give effect to recommendation 2.1 above.

142.6   Councillor Rowkins formally seconded the motion.

142.7   The Chair put the motion to a vote that was approved.

142.8   The Chair moved the recommendations as amended to the vote that were approved.

142.9   Resolved-

1)           Cabinet agrees to release the security on its £51m loan debt and rolled-up interest to the Buyer. In return, the city council will receive a future share of revenue, as set out in the Part 2 report.

2)           Cabinet delegates authority to the Corporate Director for Operations, following consultation with the Cabinet Member for Finance and City Regeneration, to complete negotiations and any legal documentation required to give effect to recommendation 2.1 above.

3)           Cabinet agrees to commission an external independent investigation to understand the circumstances of and lessons from the council’s original decision to loan public money to deliver the Brighton i360.