Agenda item - BAi360 June 2019 Payment

Report of the Executive Director Economy, Environment & Culture (copy attached)

RESOLVED: That the Committee -

1.     Noted the progress being made by BAi360 to return the attraction to a financially sustainable footing.

2.     Agreed to defer up to £1.342 million of the total payment due on 30 June 2019.

3.    Agreed not to take default action at this stage in relation to the failure to hit the financial ratios set out in the loan agreement.

4.    Agreed to inform the Board that any future deferral requests made after December 31^st 2019 should at a minimum ensure that  any interest payments  required by the Public Works Loan Board are borne by i360.

25.1    The Committee considered the report of the Executive Director Economy Environment & Culture which set out the steps being taken by the BA i360 to return the attraction to a financially sustainable footing, and sought agreement to a sum for the June 2019 payment towards the PWLB loan from the City Council.

25.2    The Chair noted that the Green Group had submitted an amendment and asked Councillor Shanks to introduce it.

25.3    Councillor Shanks said that whilst the report did confirm that the BA i360 would be able to cover the next PWLB loan payment, the amendment was to ensure that future payments were made. Councillor Shanks proposed the following amendment (changes in bold):

2.1 That the Committee notes the progress being made by BAi360 to return the attraction to a financially sustainable footing.

2.2 That the Committee agrees to defer up to £1.342 million of the total payment due on 30 June 2019.

2.3 That the Committee agrees not to take default action at this stage in relation to the failure to hit the financial ratios set out in the loan agreement.

2.4 That the Committee agrees to inform the Board that any future deferral requests made after December 31^st 2019 should at a minimum ensure that  any interest payments  required by the Public Works Loan Board are borne by i360.

25.4    Councillor Osborne seconded the amendment.

25.5    Councillor Bell said that he welcomed the amendment but could not support the substantive recommendations. He said he was concerned that there was no representation from the BA i360 and felt that it was important that members of the committee, and the public, heard from them. The Executive Director Economy Environment & Culture said that members of the Board and the General Manager had offered to attend this meeting, but he had advised them that it wasn’t necessary. However, he could either invite them to the December meeting of the Committee or he could arrange for a separate meeting with members of this committee. The Chair agreed that they should be invited to the 5 December 2019 meeting of this committee.

25.6    Councillor Janio said that it appeared that the BAi360’s business plan was failing, and said it would be useful to see their marketing plan as without that it was difficult for the Committee to make an informed decision.

25.7    Councillor Yates said that he would support the amendment. He noted Councillor Janio’s request to see the Marketing Plan, and said that he had not yet seen the original business plan. He said that Councillors had a responsibility to the residents of the city, and it was important that Board of the BAi360 understood that the Authority were beginning to lose patience. The Executive Director Economy Environment & Culture reassured members that there were specialist advisors onboard, and were advising on a number of issues, including options for the future.

25.8    The Committee voted on the amendment and it was agreed.

25.9    RESOLVED: That the Committee -

1.     Noted the progress being made by BAi360 to return the attraction to a financially sustainable footing.

2.     Agreed to defer up to £1.342 million of the total payment due on 30 June 2019.

3.    Agreed not to take default action at this stage in relation to the failure to hit the financial ratios set out in the loan agreement.

4.    Agreed to inform the Board that any future deferral requests made after December 31^st 2019 should at a minimum ensure that any interest payments required by the Public Works Loan Board are borne by i360.