The i360’s financial woes have led to people contacting councillors with ideas to revive the fortunes of the seafront viewing tower.
Deputy leader Jacob Taylor said that one call came from a millionaire who made his money from a bungee jumping business.
Councillor Taylor spoke about the public response as he took questions from fellow councillors about the £51 million debt owed by the i360 operator to Brighton and Hove City Council.
The questions followed news that Brighton i-360 Limited had filed a notice of intention to appoint administrators, giving it temporary protection from creditors.
Councillor Taylor told a special joint meeting of two scrutiny committees that the council would have to pay £2.2 million a year for the loan that was brokered 10 years ago.
At Hove Town Hall last night (Thursday 28 November) the Labour deputy leader said that the term of the loan would run for another 16 years – until 2040.
Fellow Labour councillor Julie Cattell said that the situation was “disastrous” and asked Councillor Taylor and chief finance officer Nigel Manvell if there were any ideas to deal with the fallout.
Councillor Taylor said: “Ideas are coming, including people ringing me directly. Someone today suggested they used to run a multimillion-pound bungee jumping business in New Zealand and perhaps that could go on the i360.
“People are coming up with ideas and we want ideas and the administrators want ideas. They need to start talking to the country – not just the city – to attract potential investors and potential buyers.”
But in terms of financial planning, Councillor Taylor said that there was little more that the council could do other than lay out the facts at this stage.
Conservative group leader Alistair McNair said that he was concerned about the way in which the i360 debt would affect the current council’s ability to manage taxpayer money.
He criticised Labour for attacking the Greens over the i360 loan decision which was voted through during the first Green administration which ran from 2011 to 2015.
In the past few days Labour and the Greens have been involved in a public spat about the loan which continued in the council chamber during the meeting last night.
Councillor McNair said: “I’m certainly not defending the Greens but Labour have been in power for 18 months. The main story is the i360 collapsed under a Labour administration.
“We should be hearing what Labour have been doing to save the i360. It begs the question that, after all the internal changes at the council, has the administration taken their eye off the ball? Can the council cope?”
He asked for details of what management systems were in place to help save the i360 and protect the 460 staff which was a priority, he said, because of the “huge sum of taxpayer money” at risk.
Councillor Taylor said that he was happy to “turn his ire” on the Tories because former Conservative group leader Geoffrey Theobald had supported the i360 deal.
He had said that the deal would “lead to millions more in revenue” for and criticised former Labour leader Warren Morgan, who voted against the loan, calling him “Councillor No”.
Councillor Taylor said: “We need no lessons from this Tory party in Brighton and Hove about protecting council tax payers’ money and indeed we don’t really need any lessons about the basics of company law which Councillor McNair doesn’t seem to understand.
“Do you not understand this is a private company that you and your lot lent £36 million of our taxpayers’ money to.
“It’s a private company that we acted as a bank or a hedge fund for, giving money to a speculative tourist attraction that hasn’t panned out and hasn’t delivered over many years.
“We do have a further option which was presented to us. It wasn’t a formal request. The council could give more money to the i360 to see if they can get them through a few quarters.”
He said that throwing good money after bad was one option that wouldn’t be on the table.
All parties have allowed i360 to miss repayments. The plug should have been pulled years ago on that
Yep – there’s a joint responsibility there. Jacob Taylor also misses out the bit in 2017 (after the i360 opened) when Warren Morgan (who was Leader of the Council at that point) signed a cross party statement which said
“The British Airways i360 was developed over many years and was considered by local politicians from all parties along the way to becoming a towering success on our seafront.”
Labour seem to want their cake and eat it. They took credit for the i360 when it opened in 2016 and repeated that the following year in a public statement, now it’s failed they are distancing themselves like crazy.
Theo, that wouldn’t have helped at all?
The hope has been that the i360 would diversify its income streams, so as to trade out of its non-profit situation.
While some money was being paid back towards the council loan, that was better than nothing.
Once the plug is pulled, as now, there is little chance of the council recouping anything towards the loan, and on paper that debt now stands at £51 millions.. As the article says, this loan will now take 2.2m out of the council’s services budget each year, for the next 16 years.
The only hope now is that a buyer is found. Otherwise the council joins the list of creditors, and the council may end up needing to run the i360 – which of course could lead to further financial disaster.
The land is worth something, as a prime location, but technically that still belongs to the West Pier Trust.
Removing the i360 tower would cost further millions.
This is exactly the situation that Labour, under Warren Morgan, warned about at the meeting in 2014 – that bonkers council meeting where the Greens and Torys combined to vote for the £32millions loan.
“Theo, that wouldn’t have helped at all?”
Potentially. If council or a specialist firm would have intervened they may have been able to damage control it before it spiraled out of control for years.
The continues missing of payments should have been the biggest red flag that it wasn’t being run well. Amd considering the council was it’s biggest financial backer it could have used that power to oversee the operation
Actually it was offered out to a variety of companies including the Brighton Palace Pier group to run. All of them said NO because they couldn’t make the figures work
How are there possibly 460 jobs at risk ? Are there a lot of people inside the big tube that we don’t see ? Maybe they’re pulling all the ropes to get that thing up there , it must be heavy I guess .
2.2 million that could go towards more neccessary projects or radically to enable schools to survive .
Gosh – are Labour just angry at everyone. So much finger pointing come from them every day it’s hard to keep up.
Both in Brighton and Starmers cabinet. I have my popcorn ready 😊
So where has the monies received been going to, the 460 staff? Been trousering it?
460 jobs!? Where is that number coming from.
This project was a terrible idea, it should have never had a single penny of tax pay money put to it.
I would suspect a large number of that is the maintenance and safety of the technology.
Time for a Green apology!
Oh no – they don’t do apologies, because they’re never wrong!
Should never have been built on the first place. A vanity project for the councilors that signed it off. The Brighton Wheel seved that purpose more than adequately. It was never going to achieve the numbers projected.
Considering the other issues with the Green budgeting and financials, I suspect this project was less about vanity, and more about incompetence.