Exclusive: i360 costs doubled – with final bill now more than £46 million

The cost of building the i360 on Brighton seafront has more than doubled with the final bill now estimated to be more than £46 million, The Latest can reveal.

The sum is included in a heap of commercially-sensitive information presented to Brighton and Hove councillors before they make a decision whether to support the attraction next week.

When plans for the 175-metre tower were given planning consent in 2006 developers Marks Barfield said it would cost between £15 million and £20 million to build.

But The Latest now understands the total final cost will be £46.23 million.

Most of this will come from a £36 million government loan drawn down by the council and handed straight over to the developers.

This would be repaid with interest over a period of more than 25 years with the council making at least a seven-figure profit.

Councillors will vote on whether to support this proposal at a crunch meeting of the policy and resources committee on Thursday.

A further £3 million will come from Coast to Capital, the area’s local enterprise partnership, with the rest coming from private funding.

Green and Conservative councillors are set to support the loan plan but Labour is firmly against.

As revealed by The Latest earlier this week, the Tories only supported the plan after a discussion between its councillors on Monday night.

Of the 18, five were against.

The Latest can reveal the Noes as Mary Mears, Lynda Hyde, David Smith, Geoff Wells and Dawn Barnett.

Coun Smith said: “I’m not against the i360 but totally against the city council being involved in the financing.”

Coun Mears said: “Though I support the concept of the i360, they have failed to secure private finance.”

Coun Wells said: “With big business people uninterested in ploughing money into the i360 in my opinion this could well go pear shaped leaving local taxpayers picking up a very big bill.”

Coun Barnett, who represents Hangleton and Knoll, said: “I’ve got a four year old great grandson and he’ll be nearly 30 before it’s paid back.

“I think it’s too much money and too much of a risk. That money could go towards building a new leisure centre.”

Details on the loan and how it will be repaid are expected to be unveiled tomorrow (Friday).

The Latest understands that it will see the local authority receive 1% of all ticket sales for the attraction, which developers believe will draw in up to 800,000 people a year.

Sources add the council will receive £1 million in fees as well as the difference in interest rates between the rate borrowed, which will be a peppercorn public works amount, and the repaid amount, which will be commercial.

It is understood this could be as much as 3% difference.

The council will receive a further six-figure sum as new government rules means it can keep part of the business rates generated.

Council leader Jason Kitcat said: “The i360 developers have shown they can deliver successful tourist attractions elsewhere, and we believe they can do the same here.

“Not only will Brighton and Hove get a landmark that will put us on the international map, and bring additional visitors to our city – but it will regenerate an area where businesses are struggling.

“That’s why the i360 has strong support from local residents and businesses.

“To help bring this positive project move forward, we are working hard to get the best deal possible for the city, and will be able to share more information about the proposals at the end of the week.”