Lister House, The Parade, St. Helier

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A decision made (24/05/2007) regarding: Lister House, The Parade, St. Helier - Proposed Lease.

Subject:	Lister House, The Parade, St. Helier - Proposed Lease
Decision Reference:	MD-PH-2007-0045	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 2061
Written Report – Title	Lister House, The Parade, St. Helier - Proposed Lease	Written report - author		Neil Sproston
Decision(s): 1. The Minister approved, as recommended by Property Holdings, the Public of the Island entering into an agreement with the John Clive le Seelleur Trust in relation to the lease of Lister House, The Parade, St Helier. The lease shall be for a period of 15 years at an initial rental of £87,500 per annum, upon tenants full repairing and insuring terms, to be deemed to have commenced from the date upon which the Trust acquire the property. 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. 3. Under Standing Order 168 (5) the Minister hereby authorises the Attorney General and the Greffier to pass any contract which is required to be passed on behalf of the public. After the expiry of 15 working days following presentation to the States the transaction may be concluded.
Reason(s) for decision: The property is to be leased on behalf of Health and Social Services for the provision of psychiatry clinics as part of a reorganisation of facilities at the General Hospital. Under Standing Order 168 (1) (a) and 168 (3) the Minister is required to notify the States of his acceptance of recommendations to dispose, acquire, let or rent land on behalf of the public of Jersey.
Action required: Director of Property Holdings to request the Greffier of the States to notify the States of the above decision, and to confirm this decision to the Minister for Health and Social Services. Greffier of the States to notify Property Holdings (Eric Le Ruez) of the date when the States have been notified. Director of Property Holdings to instruct the Law Officers’ Department concerning the completion of a contract lease before the Royal Court
Signature: (Assistant Minister)[1] Deputy J Le Fondré			Date of Decision: MD-PH-2007-0045 24 May 2007

Lister House, The Parade, St. Helier - Proposed Lease.

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

Lister House, The Parade, St. Helier - Proposed Lease

NS 2061/1

Purpose

To ask the Minister to approve a lease from the John Clive Le Seelleur Trust in respect of the above property in order to secure its use by the Department of Health and Social Services.

Background

As part of an overall plan that will see additional services provided at the General Hospital, Health and Social Services has identified a need to relocate its psychiatric clinics away from the General Hospital site. The current arrangements are unsatisfactory in terms of best medical practice for the provision of such services.

Lister House is a vacant three storey commercial property situated in the Parade which has recently been advertised for sale at £1.3m or, alternatively, to let at £96,457 per annum. It was previously used, in part, as a medical practice and totals approximately 4,440 sq. ft. The position and physical lay-out of this property on three levels would prove an ideal location from which to provide psychiatric clinics on the ground floor with the upper floors being used as office accommodation.

The ‘in-principle’ acquisition of Lister House by the Public to support the provision of these services was approved by the Minister of Health and Social Services in February 2007. At the time it was envisaged that monies from the Harold Le Seelleur Fund would be used to finance the purchase. Confirmation has subsequently been received from the Chief Executive of Health and Social Services and Director of Estates that they are satisfied with the revised terms and wish to proceed accordingly.

Current Lease Proposal

As a result of a delay in releasing monies from the Harold Le Seelleur Fund, Health and Social Services has approached the John Clive Le Seelleur Trust in an attempt to ensure an opportunity to secure the use of this property is not lost.

The John Clive Le Seelleur Trust is an independent body which has worked closely with the Department of Health and Social Services to mutual benefit. The Trust was established “for the benefit of the Public Health Committee for the general welfare of persons elderly and/or sick at the General Hospital or at any of its annexes”. As such, any funds generated by those properties it retains is received by the Public to be used in accordance with the Trust’s wishes.

Mutually acceptable terms have now been agreed for the Trust to purchase the property, subject to contract, on the understanding it will then secure a lease with the Public for a suitable period that justifies its initial investment.

Accordingly, provisional agreement has been reached with the Trust regarding a 15 year tenant’s full repairing and insuring lease of the property, to be deemed to have commenced from the date of purchase. The Trust has also agreed to fund the fitting out of the property to a specification agreed by Health and Social Services at an approximate cost of £200,000. An initial rental of £87,500 per annum has been agreed, inclusive of fit-out works subject to three yearly rent reviews in accordance with the Jersey Retail Price Index.

Although the property appears to be in good superficial repair and decorative order, the fit out works are likely to include upgrading of heating/cooling facilities, possible upgrading of the insulation to the upper floor, improved lighting, kitchen facilities, communications, as well as additional consulting rooms on the ground floor. To accord with Health and Social Services’ revenue budget and mindful of the work required, the Public will also receive a two year rent free period from the commencement of the lease.

Recommendation

That, subject to the completion of the purchase of Lister House by the John Clive le Seelleur Trust the Minister agrees for the Public to enter into a lease upon the principal terms referred to above, subject to any further advice provided by the Law Officers’ Department.

Written By: Neil Sproston

Signature …………………………

Authorised By: Eric le Ruez

Signature ………………………… 17 May 2007