Decisions for issue Brighton i360 Loan Restructure
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Brighton i360 Loan Restructure
RESOLVED: That the Committee
1. Noted the economic and social impact benefits the BAi360 has had on the city’s visitor economy as set out at 3.1 and in the report at Appendix 1.
2. Agreed to Coast to Capital Local Enterprise Partnership novating their Growing Places Fund loan of £4.06m and grants delegated authority to the Executive Director Economy, Environment & Culture to agree the terms of the novation agreement, enter into that agreement and take any other steps necessary to effect the novation.
3. Acknowledged that £312,000 of loan repayment from BAi360 was paid in error to the city council and agrees to repay that money to Coast to Capital Local Enterprise Partnership whilst noting that it is a debt owed to the Council by the i360.
4. Agreed to the loan restructure principles as set out at 3.16 and delegates authority to the Executive Director Economy, Environment & Culture and the Executive Director Finance & Resources; in consultation with the Members’ Working Group as set out at 2.6, to negotiate a revised loan agreement to cover both the principal loan and the novated LEP loan based on those restructure terms and enter into any legal agreements necessary to effect that restructure.
5. Noted that the restructure cannot take place until early in the new year and agrees to defer up to £ £880,304.25 of the total payment due on 31 December 2019 under the loan agreement; and 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.
6. Agreed to establish a new permanent Members’ Working Group, in accordance with the terms of reference at appendix 2, to oversee the city council’s relationship with the BAi360. This will include agreeing future business plans and receiving regular updates on performance.
7. Agreed to officers procuring ongoing advice on the visitor attraction market to help inform the process of agreeing the annual business plan.