Treasury and Resources
Ministerial Decision Report
Transfer of belle vue site from property holdings to HOUSING
- Purpose of Report
The Minister is asked to approve the transfer of the Belle Vue site, St Brelade from Jersey Property Holdings (JPH) to Housing for future development as social and affordable housing.
- Background
The site forms part of the land acquired by compulsory purchase known as the ‘Lesquende’ land. Following the withdrawal of the Health and Social Services Department’s requirement for the site to be developed as a Day Care Centre and Residential Care Home, the site was identified as suitable for residential development.
Since an initial feasibility in 2007, a number of schemes have been produced and considered by planning. The latest scheme, comprising 35 two bed apartments for social rental and 20 two bed houses for the over 55’s based on the Life Time Home concept has been submitted for Planning Approval.
The tenure arrangements for the two bedroom ‘Life Time Homes’ has yet to be finalised, but the concept of disposing of a reversionary interest only is being actively explored by the Housing Department.
- Proposal
The site currently sits on JPH’s balance sheet as an asset identified for disposal as there was an expectation that it would be developed as part first time buyer properties and part social rented housing to be developed by a Housing Trust.
Under IFRS accounting regulations this designation is no longer permissible as there is no expectation that the site will be sold within the next year.
As a social and affordable housing site that can be developed by the Housing Department, it is appropriate that it be transferred to that department’s balance sheet together with the associated budget.
The proposed development will contribute to the States provision of affordable housing and, subject to planning, development of the 35 apartments could commence in the last quarter of 2012, with development of the 20 housing units following in 2013, subject to agreement as to tenure.
The Minister will be required to consider the development proposals in detail when they are brought forward prior to tendering, in accordance with the requirements of Standing Order 168 (1)(d).
- Recommendation
That the Minister approves the transfer of the Belle Vue Site, St Brelade from JPH’s to Housing.
- Reason for Decision
The transfer reflects the appropriate accounting treatment for the property, based on the expectation that it will be developed by the Housing Department as social and affordable housing.
Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be used for the purposes of another head of expenditure.
- Resource Implications
The transfer between two entities within the States has no impact on either JPH’s or Housing’s near cash revenue account on transfer.
The disposal receipts currently forecast in the Medium Term Financial Plan will be adjusted to reflect the foregone receipts assumed from the disposal of this site, which will impact on the forecast Consolidated Fund balance.
Report author : Interim Director JPH | Document date : 10/1/2012 |
Quality Assurance / Review : Assistant Director Estates JPH | File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2012-0004 -\mr transfer to housing 111207 rf.doc |
MD sponsor : Treasurer |