Agenda and minutes

            The Chief Executive submitted for the Committee’s consideration the undernoted report in relation to the Titanic Signature Project:

“1.0       PURPOSE

1.1       To receive the findings of the Due Diligence Report commissioned by the Council on the Titanic Signature Project and determine whether the Council will make a £10million contribution to the £97million total cost of the project.

1.2       BACKGROUND INFORMATION

            At its meeting on 29 February 2008 the Committee received a presentation from Titanic Quarter Ltd (TQL) on the proposals for the building of a Titanic Signature Project (TSP) in the city.  The Committee noted the support of central government for the project and outlined its support for the building of a TSP in time for the 100th anniversary of the launch of the ship in 2012.  The Committee further noted the need for the Council to show leadership by investing in significant projects which would bring significant benefit to the city.  The Committee therefore agreed that active consideration should be given to investing £10million in the project, subject to a full due diligence review being undertaken.

1.3       Accordingly, the Council commissioned Deloitte to undertake the due diligence exercise with a view to appraising the economic appraisal undertaken by PricewaterhouseCoopers of the TSP; examining the financial viability of the project proposals; assessing the relative benefits and risks attached to the project; recommending  the necessary actions required to mitigate against identified risks; examining potential issues in regard to the wider Titanic Quarter development; and outlining those conditions which should be attached to any funding offer, if agreed, from the Council.

1.4       Members will recall that the origins for the TSP lie in the Northern Ireland Tourism Board (NITB) Strategic Framework, which had identified five key signature projects to enhance the Northern Ireland tourism product. Members will recall that it was the Council back in November 2004, along with the Northern Ireland Tourist Board, who agreed to jointly fund a feasibility study for the creation of a Titanic Signature Project within the city.

1.5       Members will further recall that a Big Lottery Bid for funding was unsuccessful and that the private sector has been unable to bring forward a viable proposal to realise the Titanic Signature Project.  It has therefore been accepted by central government that public sector intervention was needed to allow the project to be built.

2.0       KEY ISSUES

2.1       EXECUTIVE SUMMARY OF KEY ISSUES

2.1.1    In summary, Members are asked to note:

§         The total cost of the project has been established as £97million.

§         The proposed funding formula is £43.5m from central government; £43.5m from the private sector, TQL and Belfast Harbour Commissioners; and £10m from Belfast City Council.

§         Central government commissioned an Economic Appraisal from PricewaterhouseCoopers.  This appraisal looked at a number of options and determined that the most favourable in terms of economic and social returns was the Titanic Signature Project submitted by TQL.

§         The Northern Ireland Executive have therefore agreed to commit £43.5m towards the project, subject to a number of conditions, one  ...  view the full minutes text for item 1.