Flamboyant Labour city councillor Mike Olley is set to become the £50,000-ayear manager of Birmingham's Broad Street Business Improvement District.

Olley was offered the job yesterday on the condition that he resigns immediately from the city council.

He beat off two other contenders on a short list to run the BID, which will see businesses contribute £1.7 million over the next five years to deliver a brighter, cleaner and safer environment in the Broad Street area.

The decision has already proved controversial. Four BID board members given the responsibility for making an appointment were initially split over who should get the job.

Coun Olley's presentation to the board followed by a question-and-answer session is believed to have swung the final decision his way. One source close to the board said: "In fairness, Olley, with his typical flair, gave the best presentation."

Board members also quizzed Coun Olley about whether his various business interests would interfere with his role as BID manager.

He works during part of the year in Dubai and America. He is involved with a security company and, in a separate venture, runs a "mystery shopper" service offering to test sales techniques in shops and pubs.

In May, Coun Olley, who represents the Tyburn ward, failed in an attempt to gain the leadership of the council opposition Labour group. He was defeated by Sir Albert Bore by 15 votes to 29. He failed in 2003 to become deputy leader of the council when Labour ran Birmingham.

Coun Olley's political career took off when he became an outspoken chairman of the council's main scrutiny committee in 2001. But he suffered a setback after being voted out of office by his colleagues after challenging for the council deputy leadership.

Councillor Ken Hardeman (Con Brandwood), a BID board member and cabinet member for regeneration, said: "I think there were issues around Mike Olley's political and business interests which he endeavoured to answer to the satisfaction of board members."

The Broad Street BID was backed overwhelmingly by businesses which voted to pay additional rates to the council in return for designated additional services. Coun Olley will be responsible for ensuring the BID business plan is delivered.

According to the job description the BID manager will ensure effective delivery of services, liaise with other service providers and act as an "advocate and trouble-shooter" for stakeholders.

Coun Olley was unavailable for comment.