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Andium Homes Ltd: Business Plan 2014 - 2019: Amendment

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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A decision made 13 July 2015:

Decision Reference:  MD-TR-2015-0086

Decision Summary Title:

Andium Homes Ltd –Change to Strategic Business Plan 2014 - 2019

Date of Decision Summary:

7th July 2015

Decision Summary Author:

Head of Shareholder Relations

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Andium Homes Ltd –Change to Strategic Business Plan 2014 - 2019

Date of Written Report:

7th July 2015

Written Report Author:

Head of Shareholder Relations

Written Report :

Public or Exempt?

Public

Subject:

Andium Homes Ltd – Change to Strategic Business Plan 2014 – 2019.

Decision(s):

The Minister approved the replacement of the Summerland and Ambulance Station sites by the development  of Ann Court in the “New build and redevelopment projects” section on page 17 of the. Strategic Business Plan 2014-2019.

Reason(s) for decision:

 

  • As requested by Andium Homes in a letter from their Finance Director dated 24th June 2015.

 

  • In accordance with Section 8.6 of the Memorandum of Understanding between Andium Homes Ltd and the Minister (as Guarantor), which requires the Minister to agree modifications to the Strategic Business Plan.

 

Resource Implications:

There are no additional resource requirements as a result of this decision.

Action required:

Treasurer of the States to write to Andium Homes confirming that the Minister has approved the change to the Strategic Business Plan 2014-2019 in accordance with their request.

 

Signature:

 

 

Position: Senator A J H Maclean, Minister for Treasury and Resources

 

Date Signed:

 

Date of Decision:

Andium Homes Ltd: Business Plan 2014 - 2019: Amendment

 - 1 -

Treasury and Resources

Ministerial Decision Report

 

 

Andium homes Ltd – change to strategic Business Plan 2014-2016.

 

 

  1. Purpose of Report

To enable the Minister to consider a request from Andium Homes Ltd to amend their Strategic Business Plan 2014-2019, as requested in their letter dated 24th June 2015.

  1. Background

Andium’s Strategic Business Plan 2014-2019 (SBP) was approved by the Minister in MD-TR-2014-0120.

Section 8.4 of the Memorandum of Understanding between Andium and the Minister (as Guarantor) states that Andium may seek the agreement of the Guarantor to modifications of the SBP at any time by written notice, and such consent will  not be unreasonably withheld.

 

  1. Request to change the Strategic Business Plan 2014-2019

Andium Homes have requested in a letter dated 24th June 2015 a modification to allow the funding for the Summerland and Ambulance Station site to be used on the same terms for the development of the Ann Court site.

Jersey Property Holdings have advised Andium that the Summerland and Ambulance Station site will not now be available for development until 2022.

In MD-PH-2015-0053 Jersey Property Holdings approved the disposal of the Public’s land holdings on the former Ann Court site to Andium Homes to assemble a site for a residential development with public car parking element.

The Minister for Housing has also formally endorsed the development of the Ann Court site by Ministerial Decision in MD-C-2015-0062, stating that the development of affordable housing at Ann Court is a key priority of the Minister for Housing.

The Public had previously entered into discussions with Jersey Homes Trust (JHT) with a view to the site being developed by JHT as a social housing site above a basement of public parking, to be funded by the Car Parks Trading Account. It was not possible to reach an agreement with JHT and the Trust decided not to continue with the project. The Public then subsequently entered into discussions with Andium Homes as an alternative developer of the site.

These changed circumstances have resulted in the request to amend the Strategic Business Plan.

Approval will mean that the Ann Court scheme will be eligible to be funded from the £207m loan allocation within the Housing Development Fund, which is allocated to Andium Homes. This loan will be subject to a separate and specific loan request from Andium, supported by a viable “Business Case” and will require the approval of the Minister in a separate Ministerial Decision.

 

 

  1.       Reason(s) for Decision

As requested by Andium Homes in a letter from their Finance Director dated 24th June 2015.

 

 In accordance with Section 8.6 of the Memorandum of Understanding between Andium Homes Ltd and the Minister (as Guarantor), which requires the Minister to agree modifications to the Strategic Business Plan.

 

  1. Recommendation

The Minister is recommended to approve the amendment requested by Andium Homes to the Strategic Business Plan 2014-2019.

 

  1. Resource Implications

There are no additional resource requirements as a result of this decision.

 

Report author : Head of Shareholder Relations

Document date: 7th July 2015.

Quality Assurance / Review : Head of Decision Support

File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\MD-TR-2015-0087 Andium Homes Ltd –Change to Strategic Business Plan 2014-2019

MD sponsor :

 

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