The Board is invited to agree new terms for a loan to i360.
A report prepared for the next Policy and Resources Committee on May 12 details proposals to secure the loan repayment from Brighton and Hove City Council as soon as possible.
The i360 owes the council millions of pounds and has deferred several payments as the Covid-19 pandemic hit visitor numbers.
The i360 on Brighton seafront
The report sets minimum payments that would see the loans paid off over 25 years, but it’s possible they could be paid off sooner if the attraction performs well.
The first half-yearly payment is set at £900,000 in December and £600,000 in June next year.
The board will also take all profits from i360 in a ‘cash sweep’, leaving only enough funds to cover cash flow.
The figures used to determine the new proposal are based on the latest forecast for the waterfront attraction.
A spokesperson for the council said: ‘The i360 has proven to be a popular tourist attraction and contributes to the town’s tourist economy all year round.
“It has brought a number of benefits to what is now a significantly improved and regenerated part of the city’s central waterfront.
“The restructuring of the loan is designed to improve the stability of i360 so that it can succeed in the future, as an employer and an important part of the city’s tourism offer.”
The principles for the loan restructuring were first agreed by members in December 2019, but the pandemic hit before the restructuring could be enacted.
The councils say the restructuring will ensure that all money loaned to i360 will be repaid in full, with no money written off, including previously deferred payments.
It will also ensure that all council interest and financial costs are fully covered and that i360 remains a “solvent and viable business contributing to the city’s economy”.
Commercial financial advisors have been called in to test several restructuring options and the proposed restructuring is considered to be “best in the book”.
Earlier this year British Airways ended its sponsorship of the giant tower on Brighton seafront.
The 530ft structure is seeking new sponsors after it was announced that the airline will not be supporting the attraction once naming rights expire on November 3, 2022.
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Source: www.theargus.co.uk
This notice was published: 2022-05-06 10:35:14
