Brighton Council asked to agree terms for i360 loan

A report prepared for the next policy and resources committee on May 12 details proposals that aim to get Brighton and Hove City Council’s loan repaid as quickly as possible.

The i360 owes the council millions of pounds and has deferred several payments, with the Covid-19 pandemic hitting visitor numbers.

The i360 on Brighton seafront

The report sets out minimum payments that would see the loans repaid over 25 years, but there is potential for them to be paid back sooner if the attraction performs well.

The first six-monthly payment is set at £900,000 in December, and £600,000 in June next year.

The council will also take all profits from the i360 in a “cash sweep”, leaving only enough funds to cover cash flow.

Figures used to determine the new proposal are based on the latest forecast for the seafront attraction.

A council spokesman said: “The i360 has proved to be a popular visitor attraction and contributes to the city’s year-round visitor economy.

“It has brought with it a number of benefits to what is now a vastly improved and regenerated part of the city’s central seafront.

“The loan restructure is designed to improve the stability of the i360 so it may succeed into the future, as an employer and an important part of the city’s tourism offer”.

The principles of the loan restructure were first agreed by members in December 2019, but the pandemic struck before the restructure could be enacted.

The councils say the restructure will ensure that all money lent to the i360 will be repaid in full, with no money written off, including previously deferred payments.

It will also ensure that all council interest and finance costs are covered in full and that the i360 remain a “solvent and viable business, contributing to the city’s economy”.

Commercial financial advisors were called upon to test several options for the restructure and the proposed restructure is considered “to offer the best outcome”.

Earlier this year, British Airways ended its sponsorship of the giant tower on Brighton seafront.

The 530-foot structure is seeking new sponsors after it was announced the airline would not be supporting the attraction once naming rights expire on November 3, 2022.