Costs of paying for Channel M to move into Manchester's failing URBIS centre have spiralled by £100,000 in just 5 months.
Manchester Lib Dem Leader Simon Ashley requested a briefing note a fortnight ago but had not received one as of this morning. Cllr Ashley has therefore "called in" the proposal for extra scrutiny, to find out why costs have risen so sharply.
Last August, Manchester Liberal Democrats opposed the controversial plans for the Council to give a 5 year interest-free loan to Channel M to move into Urbis, rent-free.
The amount, which was kept secret because of "commercial confidentiality", will be repaid by Channel M over 5 years, but, apart from these repayments, no other rent would be due.
Liberal Democrat Leader Simon Ashley said:
"I said in August that this was a great deal for Channel M. Now Channel M are getting an extra £100,000 free of interest and, apart from repaying the loan, they are in URBIS rent-free."
He continued:
"However, this is still a lousy deal for Manchester's Council Tax payers. There will be no reduction for at least 5 years on the £2 million subsidy to URBIS, there is a break clause after 5 years for Channel M, we are giving them a large interest-free loan, and they have no additional rent to pay. The reality is that this trendy media deal won't save a single penny for many years."
The item will now have to be considered by the powerful Finance Scrutiny Committee before the extra £100,000 is agreed.
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