Development Agreement: Coolwaters and Dandara

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A decision made (17/07/2006) regarding Assignment of Development Agreement: Cool Waters Limited and Dandara (Sandringham) Limited - Site of Catherine Quirke House, St. Helier.

Subject:	Assignment of Development Agreement : Cool Waters Limited and Dandara (Sandringham) Limited- Site of Catherine Quirke House, St Helier
Decision Reference:	MD-PH-2006-0057	Exempt clause(s):		None
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		NS 16/23/1-4
Written Report – Title	Assignment of Development Agreement : Cool Waters Limited and Dandara (Sandringham) Limited- Site of Catherine Quirke House, St Helier	Written report - author		Neil Sproston
Decision(s): 1. That the Public’s consent be issued, as party to a Development Agreement dated 2 February 2005, between Cool Waters Limited, Sandringham Investments Limited and the Public, in order to allow an assignment between Cool Waters Limited and Dandara (Sandringham) Limited, with all other terms contained in the said agreement to remain as existing. The Public’s reasonable professional fees incurred shall be met by the proposed assignor. 2. Under Standing Order 168 (1) (a) and 168 (3) the Minister for Treasury and Resources hereby notifies the States that he has accepted the recommendation of Property Holdings to agree to the above land transaction. The Minister hereby authorises the Attorney General and the Greffier of the States to pass any contracts on behalf of the Public of Jersey that may be necessary. After the expiry of 15 days following presentation to the States the transaction may be concluded.
Reason(s) for decision: Since the terms of the agreement are otherwise unaffected by the assignment of the contractual rights and responsibilities by Cool Waters Limited to Dandara (Sandringham) Limited, the Public’s position is not considered to be prejudiced by this proposal.
Action required: In accordance with Standing Order 168(3) of the Standing Orders of the States of Jersey, this decision must be presented to the States at least 15 working days before the contract is passed before the Royal Court. The Director of Property Holdings is to instruct the Law Officers’ Department and the States Greffe to pass the necessary contract, and to copy this decision to the Minister.
Signature: (Assistant Minister) Deputy J Le Fondre			Date of Decision: MD-PH-2006-0057

Development Agreement: Coolwaters and Dandara - Catherine Quirke House.

PROPERTY HOLDINGS

REPORT TO MINISTER

Assignment of Development Agreement : Cool Waters Limited and Dandara ( Sandringham ) Limited- Site of Catherine Quirke House, St Helier

Purpose

To approve the grant of the Public’s formal consent in order to permit a proposed assignment between Cool Waters Limited and Dandara (Sandringham) Limited (”Dandara”) in relation to a development agreement pertaining to the above site.

Background

In accordance with P.98/2003 a development agreement was entered into by the Public dated 2 February 2005 with Sandringham Investments Limited and Cool Waters Limited. The agreement effectively provided that in exchange for the property known as “Catherine Quirke House”, the Public was to receive, upon completion of the scheme, 5 no. one bed. flats, a 1500 sq.ft ground floor unit (to operate as a medical centre) and a sum of £47,000 towards fitting out costs.

Current Situation

Though the demolition of Catherine Quirke House (and the balance of the site) was completed early 2006 progress on site appears to have slowed. A request has presently been received from the developer; Cool Waters Limited to assign its interest in the development agreement to Dandara. This entails the sale of the development site itself (incorporating The Sandringham Hotel, 8 Gloucester Street and 2 Patriotic Place) to Dandara, as well as the transfer of all contractual rights and liabilities, without amendment, from Cool Waters Limited to Dandara.

The Development Agreement provides that neither Sandringham Investments Limited, (also a party to the Agreement), Cool Waters Limited nor the Public shall assign or otherwise transfer the benefit or obligations of the Agreement or any part thereof without the prior written consent of the other. Assignment by Cool Waters Limited to Dandara will therefore require the prior written consent of the Public and Sandringham, which company has agreed to the proposed assignment.

Since there shall be no amendment to the terms of the agreement, in particular the timescale within which the developer is to provide the Public with the said facilities, mentioned above, the proposed assignment to Dandara is not considered to be prejudicial from the Public’s viewpoint.

Recommendation

It is recommended that the Minister approves the grant of formal consent by the Public to allow a proposed assignment between Cool Waters Limited and Dandara (Sandringham) Limited in respect of the above development agreement dated 2 February 2005 between Sandringham Investments Limited, Cool Waters Limited and the Public, with the Public’s reasonable professional fees being met.

Written By: Neil Sproston

Principal Valuer/Estates Surveyor

Signature …………………………

Authorised By: Paul Tucker

Assistant Director of Property Holdings

Signature ………………………… 14 July 2006