Agenda item

Councillor Willmott submits a report that considers whether Cabinet should recommend to Council that Leicester City Council should submit its final bid to England 2018 to become a Host City for the 2018 or 2022 FIFA World Cup™ and sign relevant Agreements to accompany the bid, namely, the Host City Agreement, Intellectual Property Rights (“IPR”) Assignment, and the Host City Contribution to England 2018 Campaign and Marketing agreement.

The report will be circulated as soon as it is available.

On behalf of Councillor Willmott, the Strategic Director, Development, Culture and Regeneration, submitted a report that would enable Council to consider and make a resolution as to whether Leicester City Council should submit its final bid to England 2018 to become a Host City for the 2018 or 2022 FIFA World Cup™ and sign relevant Agreements to accompany the bid, namely the Host City Agreement, Intellectual Property Rights Assignment, and the Host City Contribution to England 2018 Campaign and Marketing Agreement.

He pointed out that there were opportunities to fully recoup the funding to be allocated, but that Council would be asked to underwrite this amount. Research had been carried out into the impact of Germany hosting the World Cup, and case studies, such as Nuremberg, which had recently been outlined in the Leicester Mercury, had shown that there were a large number of income streams and financial benefits to host cities. If it was decided not to go ahead with Leicester’s bid, this would result in disbenefit for the city, particularly if a neighbouring city was chosen, as it would be difficult to promote Leicester whilst the focus was on another city.

Councillor Willmott thanked officers for the work they had done on the bid and stated that the potential benefits to the city should not be ignored.  It was a chance second-to-none to raise the profile of Leicester, and would bring lasting benefits. He also pointed out the high level of public support for the bid and stated that it would be right for the Council to act on behalf of the people of Leicester. He welcomed the opportunity to mitigate the costs with income and other opportunities for sponsorship, and noted that there was a lot of time to plan properly.

RESOLVED:

That to enable the City Council as lead agency to submit the final bid to England 2018 along with a signed copy of the Host City Agreement, Intellectual Property Agreement and Host City Contribution to England 2018 Campaign and Marketing Agreement to ensure full compliance and therefore continue to seek status for Leicester of Candidate Host City for the 2018/2022 FIFA World Cup™, Cabinet:

1)      notes the estimated benefits, cost and risks of entering into legal agreements as detailed in the report and the confidential report and resolves that subject to necessary approvals by Council in respect of budgetary provision :

(a) It approves the Council’s bid and endorses the execution of the legal agreements described in this report namely :

i) The Host City Agreement for the 2018 and 2022 FIFA World Cupä Bid

ii)        The Intellectual Property Rights Assignment for the 2018 and 2022 FIFA World Cupä Bid

iii)      Host City Contribution to England 2018 Agreement  and

(b) Authorises the Strategic Director, Development, Culture and Regeneration to agree to enter into any other documentation which is considered necessary in so far as it is ancillary or incidental to the bid.

2)      approves the payment in the financial year 2010/11 of pre Host Country selection costs (contribution to England 2018 Campaign and Marketing costs) and project management costs of £0.35m out of 2009/10 revenue budget corporate under spends. This is contingent upon Leicester being named as a candidate Host City.

3)      Approves, subject to England being selected as the Host Country in December 2010, the payment of £0.25m over the financial years 2011-2013 for project management and other FIFA inspection related costs to be incurred prior to Leicester being confirmed as a Host City in March 2013, to be paid out of revenue budget corporate under spends in the years 2010/11 and 2011/12 or other external funding if available.

4)      agrees to set up an earmarked reserve to enable the accumulation of one off under spends prior to a decision being taken by FIFA to confirm Leicester as Host City.

5)      notes the urgent timescales imposed in the bid process and the dates on which the Cabinet and Council decisions must be made in order to submit a bid to England 2018, namely on 26 November 2009 and therefore decisions of Cabinet will be capable of implementation immediately and accordingly given that this matter will be decided at full Council, Cabinet resolve to waive call-in rights in accordance with Cabinet procedure rule 12.